Fundamentals continue to look strong in 2018 across the country, and an overall 2% rent growth is expected on average. Deliveries of new units will provide a slight headwind, as absorption rates begins to slow a bit.
The country saw 300,000 new units come to market in 2017, and that is to be followed with an expected 360,000 this year. Many of those units are expected to be in the luxury segment, putting further pressure on the affordability issues in many of the nations markets.
Demand is expected to continue as the Millennial generation ages 20-34 expands, as well as the Boomer generation continuing to downsize and choosing to rent in more centralized, amenity rich communities. Combine that with the forming of households, to be an estimated 1,000,000 per year for the next few years, and demand will be consistent, pushing the rent growth through absorption.