ATLANTA—Urban, core markets have been popular among multifamily renters. Will they these markets stay hot or will renters take a liking to the ‘burbs?
Jake Reid, a senior director at Franklin Street, tells GlobeSt.com he expects this trend to remain strong for quite some time. That’s good news for developers that are betting on primary markets.
“New product coming into the market is continuing to outperform the proforma rents as units get gobbled up by Millennials,” Reid says. “Most of the planned construction was based on the huge population of 20- to 30-year-olds entering the renter pool, but not many projected the interest in urban developments that we’re seeing from baby boomers and empty nesters.”
As Reid sees it, the definition of “urban” is also seeing a big shift. Well-planned mixed-use developments surrounding a city center in suburban markets are seeing multifamily rents almost competitive to true urban markets.
“Franklin Street is currently marketing an apartment building in Downtown Woodstock, Georgia,” Reid says. “It is seeing rents comparable to many urban core locations because of its walkability and access to chef-driven dining and shopping.”