Despite the rapidly aging cycle, demographic factors and growth in the well-balanced Southern and Western U.S. metros will maintain moderate rent growth resulting in a nationwide rent growth of 2.9%, just under the historical average.
Supply is settling into a steady pace (350,000 to 400,000 units are slated to deliver by year’s end, according to National Multifamily Housing Council), and 625,000 units are under construction now. Yardi predicts that only 290,000 units will deliver this year, which represents a 2.2% increase in total apartment stock.
Rising construction costs and worker shortages have lengthened the delivery timeline (many will deliver in 2019), according to the report, which is another backstop for rent growth, minimizing, or indeed eliminating, the risk of overbuilding. Yardi cites these as the factors in its prediction that only 290,000 units will deliver this year.
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