MULTIFAMILY NEW CONSTRUCTION AND MARKET UPDATE
Within Central PA, we are fortunate to have a multifamily rental market that is very solid. Just like the stalwart “Pennsylvania Dutch” that first populated this region, we perform well with consistent population growth and a diverse economy. While some markets are seeing dramatic highs and lows over economic shifts, Central PA has consistently posted positive rent growth since 2014.
Here at SVN Latus we strive to be the industry experts on Multifamily and New Rental Construction within Central PA. We have tracked New Construction projects within Central PA over the last few years, and below you will find a summary of the pipeline of new multifamily rental units. Thank you to our trusted clients who have shared data with us to provide the most accurate snapshot of the market.
We have estimated new rental unit demand from estimated growth basis of new households on a yearly basis within each region, taking into account the percentage of renters. These counties have an average renter population between 23-34%, with the average renter population in the US at 31.8%. York County had the lowest renter percentage at 23.2%, Cumberland County at 28%, Lancaster County at 29.5% and Dauphin County with the highest at 33.8%.
The growth of multifamily rental units in this area can be attributed to several factors. These include a steady population growth, which is fueling demand for housing, as well as an increasing number of job opportunities and businesses opening in the area. Furthermore, many people are drawn to the area due to its affordability compared to other parts of Pennsylvania and the Northeast region.
The availability of multifamily rental units in Central PA makes this area attractive to those looking for a place to call home. This is further compounded by the fact that rental rates in this area are lower than many other parts of the country, allowing renters to stretch their dollars further.
Overall, Central PA’s multifamily rental market offers attractive investment opportunities for those looking to capitalize on a growing housing market. With rental percentages increasing year over year, and an abundance of rental properties available, Central PA is positioned to see even more growth in the years ahead.
We have also added a 5% vacancy factor to the unit demand, which is based on a yearly demand. Please contact us for further details on this dat.
SUMMARY OF SOURCES