This week’s roundup takes a look at single-family rental investment trends, apartment cap rates and the top markets for multifamily deliveries. First, Arbor’s Chatter blog releases its Q2 2019 Single-Family Rental Investment Trends Report, which offers insights on the sector’s fundamentals and performance in the first half of the year. Next, RealPage reports that apartment occupancy remains tight across the nation, with most of the largest metros seeing occupancy rates above 95%. NREI notes that apartment cap rates remain at historical lows, but a handful of top markets have seen them inch higher. Then, Freddie Mac offers its midyear outlook for the multifamily sector, observing that strong fundamentals and lower interest rates are fueling originations volume in 2019. Finally, Multi-Housing News lists the top five markets by multifamily completions, including the major developments that came online this year. 

Q2 2019 Single-Family Rental Investment Trends Report

Arbor Chatter – August 8

“Demand growth has outpaced the ability of the sector to convert existing residential supply. To address this, home builders and SFR operators are doubling down their bets on the sector and turning to build-to-rent strategies.”

Most Apartment Markets Are Essentially Full

RealPage – August 7

“With a nationwide occupancy of 95.9%, tight occupancy is seen across the vast majority of local markets. In fact, 129 of the nation’s largest 150 markets are seeing occupancy at or above 95%, the threshold for a market to be considered essentially full.”

Apartment Cap Rates Creep Higher in the Country’s Top Markets

NREI – August 6

“Cap rates on apartment buildings in the nation’s top markets have been creeping higher, but lower interest rates might yet change the trend.”

Multifamily 2019 Midyear Outlook

Freddie Mac – August 8

“The first two quarters of 2019 saw mixed results, with slower growth in the first quarter but preliminary second quarter information indicating the spring leasing season is off to a strong start.”

Top 5 Markets for Multifamily Deliveries

Multi-Housing News – August 2

“When looking at the numbers by the percentage of existing stock that new deliveries account for, the ranking changes significantly, highlighting that development activity is higher in secondary and tertiary markets.”