In This Issue
Yardi News
Yardi Joins Forces with The Home Depot® Read More»
Yardi Acquires Centershift
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Yardi Acquires Enerliance
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Client News
Tarragon Property Services Increases Occupancy and Adds Resident Services with RENTCafé Read More»
TriBridge Residential Opts for Full Yardi Multifamily Solution Stack Read More»
Moss and Company Achieves New Efficiency with the Yardi Multifamily Suite Read More»
Client in Focus
Post Glen Improves Maintenance Response Read More»
Product & Technology News
Yardi Unveils Yardi Marketplace
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Orion Business Intelligence Now Includes New Collaboration Feature Read More»
1,500-plus Adoptions and Realcomm Digie Award Highlight Eventful Year for Yardi Voyager 7S Read More»
Industry Trends
Resident Retention
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Apartment Market Update
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Revolutionary Revenue
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Events
Spring YASC 2015
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Yardi Systems
North America
430 S. Fairview Avenue
Santa Barbara, CA 93117
United States
Sales: 800-866-1144
Support: 800-866-1124 sales@yardi.com
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Apartment Market Update
 Despite the slowest population growth rate in 70 years, the US apartment sector remains healthy throughout most of the country, according to the recent Multifamily Market Commentary released by Fannie Mae. In the national development pipeline, 386,000 new units were underway as of Q2 2014.
Growth indicators from the National Association of Home Builders (NAHB) show that 9.6 percent of the $331 billion of new housing built in 2013 was multifamily construction. According to housing consultant IBISWorld Inc., multifamily development will reach a 28 percent annual average rate increase since 2009, with California blazing ahead due to a 47 percent growth rate in 2012 and 20 percent in 2013.
Although apartment market fundamentals remain positive, this veritable apartment market boom is leading some to question how long the growth rate can be sustained. According to Multifamily Executive, the recent uptick in multifamily construction activity, especially in tier one cities and southern metro areas, coupled with the high rents for new Class A developments, will lead to muted rent growth, increased vacancies and even declines in NOI as early as 2015 in certain sub-markets.
Vacancies generally rise if new housing supply exceeds the market’s absorption capabilities. When rents increase at an accelerated rate, renters are pushed towards homeownership or other housing options. This will happen in some of the fastest growing markets of the US, where developers have overestimated the market’s absorption capabilities, or economic growth has failed to reach the necessary speed to lure in new residents.
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Residential Market - Winter 2015
