Marcus & Millichap forecast: multifamily growth at a slower pace

​​​SAN ANTONIO – Elevated by continued job growth, Marcus & Millichap expects another wave of rental rate increases, dropping vacancy and rising investor demand in multifamily submarkets across the city in 2017.

The anticipated growth spurt comes at a slower pace than in years past.

Employment growth will continue to provide streams of new renters, pushing the citywide vacancy rate to its lowest level so far in this cycle.

In its forecast report, Marcus & Millichap expects that rate to drop by 10 basis points to 5.8 percent this year—compared to the 20-point drop recorded in 2016

The average effective rent expects to hit $975 per month for a one-bedroom unit, or a 4.5 percent increase from 2016.

Over the past four years, developers added 26,500 units to the city’s inventory.