With 2015 winding down and 2016 rapidly approaching, CoreLogic released its economic outlook for the New Year.
If forecasts hold true and the economy grows between 2 and 3%, it predicted five things are likely to happen: Interest rates will rise; so to should housing demand; there will be continued strong demand for rental housing; the owner-occupied housing market will likely see an increase in home sales and house prices; and single-family mortgage originations will fall about 10 percent.
Rental vacancy rates are at or near their lowest levels in 30 years, and rents are rising quicker than inflation. These market conditions will likely continue in 2016, as newly built apartments are absorbed by demand from new, young households. Look for rental vacancy rates to remain relatively low and rent growth to outpace inflation in 2016.