CoStar is predicting that "over the next 12 months, 40 markets will see elevated vacancies, with 20 of those seeing rises of 50 bps or more. Active supply markets like Austin, San Jose, CA, and Charlotte will see vacancies rise by 200 bps or more."
Make no mistake -- apartment demand is still very strong and U.S. demographics are clearly in the sector’s favor. With more than 65 million Echo Boomers ages 20-34 now entering the prime renter cohort -- more than at any time since the 1970s -- savvy multifamily investors will continue to find opportunities in spite of new supply pressures.Many Echo Boomers are still living in their parents’ basement or with multiple roommates, but eventually they’ll get decent jobs and leave the nest. Markets benefiting from the growing technology and energy sectors such as Seattle, Austin, Denver and Houston are all seeing continued increases in both demand and absorption.
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