2018 was the year of the multi-family dwelling.
The new report from CBRE for 2018 reflects that the net absorption rate was 286,600 units. This exceeded the 2017 total by approximately 10,000 units, making it the highest total since the year 2000.
Construction
In 2018, the level of construction activity was very strong, with 267,900 units completed, in just slightly less than the 274,000 reported for 2017. The numbers for 2018 though reflected the second highest total since the 80s. Most likely, the difference could have been attributed to two factors: a shortage of buildable lots and a shortage of skilled labor.
Multifamily Acquisitions
According to the CBRE report, a total of $173 billion was spent in 2018 on multifamily acquisitions. This represents the highest level in 19 years, CBRE’s report stated, up 12.1% from 2017.
■ Multifamily investment totaled $50.9 billion in the fourth quarter of 2018, which translates into the highest amount in the last 12 quarters.
■ CBRE noted that significant increases were registered in multifamily investment in both the fourth quarter and the year
■ The report indicates the overall vacancy rate was 4.5% in the fourth quarter – down 20 basis points from the prior year period.
■ The reported fourth quarter vacancy rate for 2018 was the lowest in any fourth quarter since 2000.
■ CBRE projects that the strong investments of 2018 are expected continue in 2019.
■ CBRE also cautions that total investment is possible to decline slightly in 2019.
If you have any questions about this information or title insurance, please contact Ralph Aponte: 732.914.1400.
Counsellors Title Agency, www.counsellorstitle.net, founded in 1996, is one of New Jersey’s most respected title agencies, serving all 21 New Jersey counties with title insurance, clearing title, escrow, tidelands searches, and closing and settlement services for commercial or industrial properties, waterfront properties and marinas, condominiums, townhouses or residential single family homes. Counsellors Title also features its own Attorney Settlement Assistance Program™ [ASAP], which is an individual resource customized to fit the needs specifically of real estate attorneys, including, Documentation, Preparation, Disbursement of Funds, Attendance at Closing, HUD Preparation or Post-Closing Matters.