This week’s multifamily roundup features insights on this sector’s future outlook, the cities with the smallest average apartment size, and the market’s preparation for slower leasing activity in the fourth quarter. First, Kiplinger identifies three primary impacts the multifamily market will face heading into next year, including volatile financial markets and development risks. Then, Real Capital Analytics examines the most active Opportunity Zones for developers and investors. RENTCafé reports how Seattle has replaced New York as the metro with the smallest average size for a new apartment. Next, RealPage notes that despite a better-than-expected prime leasing season this year, the fourth quarter of 2018 will likely follow a normal pattern of weakness in leasing activity. Finally, NREI takes a look at why investors are turning to value-add multifamily opportunities in Los Angeles in their quest for yield.


2019 Real Estate Report: How Does the Multifamily Market Look?

Kiplinger – December 5, 2018

“Three primary impacts will move the multifamily market in 2019, including pressure from volatile financial markets, a growing housing supply and emerging development risks.”

U.S. Opportunity Zones: A Baseline

Real Capital Analytics – December 4, 2018

“In the U.S., the newly-designated ‘opportunity zones’ account for 10% of the investable universe and have averaged $50 billion in annual acquisition volume in recent years.”

As Apartments Are Shrinking, Seattle Tops New York with the Smallest Rentals in the U.S.

RENTCafé – November 30, 2018

“The average size of a new apartment completed in 2018 in the U.S. is 941 square feet (sqft), 52 sqft less than the size of an apartment built ten years ago.”

After Strong Summer, Apartment Market Preps for Seasonal Slowdown

RealPage – December 3, 2018

“While the prime leasing season was more robust than usual this year, there’s no reason to believe 4th quarter will veer from its normal pattern of weakness in 2018.”

Value-Add Multifamily Properties Outside Los Angeles Downtown Attract Investors

NREI – December 4, 2018

“Investors are expected to buy more than $10 billion in multifamily properties in Los Angeles this year.”