Multi-Family Market Report
Lipkin Investment Properties is pleased to provide a quarterly report on the latest market trends in Multi-Family properties. ¬†The market is ever changing, so please feel free to contact the Lipkin Team for the newest Multi-Family listings and sold properties.¬†
- ¬†32 (-3%)
- ¬†63 (-6%)
Northwest Vermont continues to provide an attractive market for investors in Multi-Family homes, thanks to low vacancy rates and a diverse and growing professional base.
Still, a lack of inventory is creating a tight market for investors. Across the region‚Äôs four counties, sales of duplexes and three- and four-bedroom homes were little changed in the second quarter, with 32 transactions compared to 33 a year earlier. Median pricing slipped 7.7% to $288,000.
For the year to date, median pricing has increased 6.3%, while the number of transactions rose 7.9%.
Inventory levels may not immediately improve, given the region listed only 63 new Multi-Family properties in the second quarter, down from 67 properties a year earlier. With a lack of attractive alternative investments, some Multi-Family investors are choosing to hold onto their properties for the time being. Some investors have opted to convert single-family properties into rentals because of the tight inventory supply.
The vacancy rate in Chittenden County stood at 0.9% in June, according to a December report from real estate consultant Allen & Brooks. By comparison, the second-quarter U.S. apartment vacancy rate was more than four times higher, at 4.1%.
With local employers such as Fletcher Allen Health Care and Dealer.com hiring, that‚Äôs attracting a diverse professional base to the region and increasing demand for rental properties.
- YTD median pricing increased 6.3% while the number of units sold rose 7.9%
Within Chittenden County‚Äôs Multi-Family market, Coldwell Banker Hickok & Boardman Realty was involved in one-third of all sales by volume, outpacing all other real estate offices in the county and placing our Agency more than 12 percentage points ahead of our closest competitor.
The rental market is seeing strength from economic and demographic changes. As the job market improves, young professionals are leaving roommate situations to seek their own rental apartments, while more tenants are moving to our region from out of state for job opportunities and seeking rentals, according to Allen & Brooks.