This week’s multifamily roundup takes a look at shifts in renter, buyer and seller sentiment, the top markets for rental inventory growth, and how elevated supply levels will impact the apartment market. First, Trulia notes that changes in housing trends, such as slowing home price appreciation, are causing younger would-be buyers to be less optimistic about homeownership. Next, Forbes reports that more than 1 million Americans will be priced out of the housing market in 2019, with mortgage rates increasing throughout the last year. Arbor’s Chatter blog analyzes the top markets for multifamily supply growth, noting that smaller metros are seeing the greatest increases in small and large apartment inventory. Then, Mortgage Bankers Association reveals the results of its 2019 outlook survey, which found that more than half of the top commercial and multifamily firms expect mortgage originations to increase this year. Finally, RealPage observes that 2018 markets the fifth consecutive year of U.S. delivery volumes reaching more than 250,000 units, with no signs of slowing down in 2019.

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As Housing Trends Shift, So Does Renter, Buyer and Seller Sentiment

Trulia – January 10

“The share of young Americans that say homeownership is part of their personal “American Dream” is falling, likely driven lower by increasing housing costs and a series of obstacles—from student loan debt to unsteady employment—that their older peers don’t have to contend with.”

More Than 1 Million Americans Will Be Priced Out of the Housing Market This Year

Forbes – January 10

“Home prices have been on a steady uptick since 2012, rising 7.7% just last year alone. Mortgage rates, aside from a small blip over the last few weeks, have also been on a tear, jumping more than 60 basis points across 2018.”

Top Markets for Rental Asset Growth

Arbor Chatter – January 8

“When analyzing the top markets for rental growth in the context of market segment peers, smaller metros registered impressive gains in both small and large multifamily as a share of total rental inventory.”

Majority of Firms Expect Originations to Increase

Mortgage Bankers Association – January 8

“More than half of the top commercial/multifamily firms (55%) expect originations to increase in 2019, with 13% expecting an overall increase of 5% or more across the entire market.”

Scheduled Deliveries Mark Big Shifts for Some Apartment Markets in 2019

RealPage – January 10

“Elevated delivery volumes in 2018 extended the record-breaking apartment supply cycle, and 2019 is expected to bring much of the same.”