Latest Multifamily Permit Data 'Confounding' Experts

Some housing experts are scratching their heads after the latest monthly housing report from economic research consultancy Capital Economics found that multifamily building permits grew 19 percent in March.

Capital Economics' concluded that permit data is erratic, and that these elevated numbers will not be maintained in the market. HousingWire reports that current vacancy is low, rent growth is "stable," and supply and demand seem to be in balance, after 2017's record activity. Moving forward, the multifamily market seems to be simmering down, with four consecutive quarters with a diminishing share of rental unit households, and is now considered a seller's market.

According to a Fannie Mae survey cited in the Capital Economics report, the multifamily market is expected to receive a record high, 5.7 percent increase in rents over the course of 2018. Zillow’s rent growth index reveals Nevada, Vermont, Georgia, and Delaware as the states exhibiting the fastest rent growth while Wyoming, Arkansas, Louisiana, West Virginia and Alaska exhibit the slowest rent growth.

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