Marcus & Millichap’s Research Services just released their Apartment Spotlight, detailing the first half of 2015. Some of the major talking points include:
- Steady job gains in the first half of 2015 generated robust demand for rental housing, while the modest rise in wages supported lease renewals.
- Growing demand drove U.S. apartment vacancy lower by 40 basis points to 4.1 percent in the second quarter, despite the most substantial pace of apartment construction in more than 20 years.
- The lengthy cycle of vacancy improvements and rent gains is supporting an elevated volume of activity among investors.
- The spread between the average cap rate of 5.5 percent and the 10-year U.S. Treasury remains relatively wide at 320 basis points, but continues to tighten as intense sales activity pushes down first-year return
View the full report below: