This week’s multifamily roundup provides insights on the top housing trends to watch this year, the impact of labor shortages on apartment development, and economic growth prospects in 2019 and beyond. First, MultifamilyBiz discusses the five trends set to impact the industry, including smart technology and 5G wireless capabilities. Next, Real Capital Analytics reports that the apartment sector had the strongest price growth of all property types at the end of 2018, but at a slower pace than at the start of the year. Arbor’s Chatter blog analyzes the most expensive markets for renting in the U.S., noting that many of the priciest cities are in California. Then, NREI examines how a shortage of construction workers is delaying multifamily development, at a time when the industry is in need of new supply. Finally, Fannie Mae reports that economic growth is expected to slow to 2.2% in 2019, according to its latest Economic and Housing Outlook.

chuttersnap-622245-unsplash (1)

Five Quickly Evolving Multifamily Housing Industry Trends to Look Out for in the New Year

MultifamilyBiz – January 24

“Today’s communities are filled with smart home technology, hotel-like interiors, in-building retailers, and – believe it or not – there are even more exciting developments to note as we head into 2019.”

US Price Growth Slips to 6.2% in 2018

Real Capital Analytics – January 24

“Apartment price growth, at 8.9% year-over-year, was the strongest among the property types in December, albeit slowed from the double-digit pace set at the start of 2018.”

Major California Metros are the Most Expensive in the U.S. for Apartment Rentals

Arbor Chatter – January 23

“California included four of the five most expensive metros in the nation for apartment rentals, across both small and large asset multifamily.”

Labor Shortages Delay New Apartment Openings

NREI – January 22

“The extra time it now takes to finish an apartment building has added more uncertainty to expectations of how many new apartment units will open over the next few years.”

Slower Economic Growth Expected in 2019, but a Patient Fed Could Put Housing on Firmer Footing

Fannie Mae – January 22

“Economic growth in 2018 will likely turn out to be the strongest of the current expansion, and inflation remained anchored even as the unemployment rate dipped to multi-decade lows.”