Apartment Market and Sales Insights
2025 still problematic – Across the US, Trepp reports that the overall CMBS delinquency rate is 7.29%, an increase from 5.44% a year ago. Multifamily jumped to 6.86% from 3.3% a year ago, and from 1.33% in April 2024. Part of the cause is from oversupply, increased vacancy rates, lower rental rates and reduced operating cash flow. Add to this the continued high lending rates that have severely hurt owners with loans that have been adjusted upward to market rates or recent loans that owners were hopeful to refi when rates dropped – but haven’t yet. The projected lower Fed and lender rates should ease the delinquency rate.
2026 a bright future – Our pipeline of new construction is projected to decrease in 2026 that will ease occupancy pressure. There were only 11,397 units started between 2021 and 2023. The huge amount of investments already started and ear-marked for our area will create jobs that will create population growth and increased housing demand. The decreased supply combined with the increased demand will drive rental rates and property values up.