New cyclical low vacancy reached in U.S. multifamily market

The national multifamily market in the U.S. continued its remarkable streak of growth in demand at the beginning of 2019 as national vacancy rates hit a new low. Effective rental growth climbed for the sixth consecutive quarter, reaching 4.5% on an annual basis, lifted by sustained outperformance in Sun Belt markets. Construction activity is once again expected to ramp up in the coming quarters and peak in 2020, likely leading to the formation of near-term supply-demand imbalances. Despite this, the U.S. multifamily market has continued its enviable record of strong performance.

Global Residential Clocks – Rents

Click on a regional clock to view city positions

U.S.: Multifamily Residential

EMEA: Central City

AP: Prime Residential

Source: JLL, April 2019

Investment demand remains high across Europe

Investment activity in the institutional residential market in Europe continues to be robust, with an active start to the year in France, Spain and the UK, while a shortage of stock constrained transactions in Germany despite sustained investor demand.

Government policies continue to play a role in several Asian markets

Policy measures and falling mortgage rates helped buyers regain confidence in China during the first quarter, while the government in Shanghai also made a slight cut in the transaction tax and stamp duty. Despite three new projects launching in January, buying sentiment in Singapore remained clouded by last year’s cooling measures.

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