Earnings accelerate, but rents won’t follow suit

The acceleration in earnings growth to close to a 10-year high in December will not boost rental growth. While stronger earnings will support rental demand, the large number of new apartments being completed means vacancy rates will not fall. In any event, the economic slowdown means earnings growth will fall back in 2020, and rental growth is set to slow to 3.2% over the next couple of years.

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