Multifamily rents across the country, and throughout the Midwest, rebounded in a big way in June, rising $12 to an average of $1,349, according to the latest rent survey by Yardi Matrix. On a year-over-year basis, apartment rents were up 2.7 percent across the country.
June was a big month for apartment rents; Yardi Matrix reported that this was the first time since January of 2016 when the rate of rental growth increased when compared to the previous month. Yardi Matrix researchers said the strong June suggests that there is still some growth left in the multifamily market. It should also ease the fears that the multifamily market, because of a long period where the rate of rent growth was falling, was headed for a sustained correction.
The company, though, did warn that the rate of rent growth should taper off throughout the year. That’s because more than 360,000 new apartment units are scheduled to come online this year.
As alternative lending sources continue to garner increasing market share in commercial real estate finance–which appears to be compensating for a similar decline in bank lending both national and local market knowledge in valuation is exorbitantly important. Contact John Heffernan at AAA Appraisal Management Company, LLC for accurate valuations today! JHeffernan@AAA-AMC.net
Valuations in Complex Alternative Lending
John P. Heffernan III, PE. Managing Director, Commercial / Multifamily Operations, AAA AMC
Bank origination in the first quarter of this year fell to less than seventy percent of commercial real estate financing dollars in the three markets analyzed in our sample. During the same period, commercial real estate financing by alternative lenders increased more than eight percent in those markets.