By the end of the first quarter, a number of key apartment market fundamentals had begun to soften from very tight levels, according to research from real estate services firm JLL. Effective rent growth, for instance, slowed by 160 basis points nationally, to 3.0 percent.
Experts point to higher construction deliveries as the culprit. Many of the markets in this roundup experienced this. Higher supply put upward pressure on vacancies, which hit 5.0 percent, a year-over-year change of 10 basis points.
Taking the changing environment into account, we took a second look at the multifamily markets that offer some of the best opportunities for institutional investors.