Multifamily market improves as year winds down

The multifamily market strengthened in November.

The multifamily market continued to strengthen in November, which may have property management companies optimistic that the market will show elevated figures at year-end.

Total effective rent growth rose to 3.72 percent last month, which was slightly higher than October's figure of 3.6 percent, according to a report from Axiometrics. Much of the gains in this category was due to non-Class A properties. Rental growth for Class B properties rose to 3.8 percent in November, while Class C properties eclipsed 4 percent.

Occupancies rose 48 basis points in November, which marked the sixth month in a row where the figure improved, the report explained.

"As we believed would be the case at the beginning of the year, Class C properties have led the way in both effective rent and occupancy growth throughout the year, and helped lead a turnaround in momentum since August," said Ron Johnsey, president of Axiometrics.

The top market in the country for effective rent growth improvements was Corpus Christie, Texas, the report added. The city experienced a rent growth increase of 8.62 percent in November.

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