2014 National Multifamily Rent Outlook
Rent Growth. Rents are anticipated to grow 3.5% in 2014. Rents are predicted to grow at a slightly slower rate in the coming year, and the rate of growth will remain positive, but decelerate through 2017. Seattle, the bay area, and Houston are maintaining rent growth above 4% year over year, along with strong job growth. Steady job growth is driving strong housing demand.
Markets most exposed to energy and tech sectors will experience the strongest job growth over the next few years. Energy and tech-driven markets lead all major metro areas in effective rent growth: 1. San Francisco 2. Seattle 3. Denver 4. Houston 5. Austin (The Rosen Report, Rosen Consulting Group) Rising Rentership.
The 25-34 year old age group is expected to experience a decline in home ownership rate over the next few years due to the recession as well as student debts that are preventing them from qualifying to buy a home. This results in a 11% increase in renter households for this age group by 2015.