Multifamily Fundamentals Do Not Face a Cliff

reis_apartment_fundamentals_600Nov 13, 2012

Much has been written recently about potential risks to overbuilding in multifamily—in fact, I commented on this issue last April in my NREI column, but I noted that analyzing the supply side is not enough. Demand for apartments will remain strong, and will rise further if economic growth quickens.

Apartment fundamentals have bounced back robustly since the recession ended in June 2009. Despite middling economic growth, the national vacancy rate dropped sharply from a peak of 8.0 percent at the end of 2009 to 4.6 percent in the third quarter of 2012. Vacancy rates that are this low have not been observed since late 2001.

Asking and effective rents have risen for 11 consecutive quarters and in many areas have surpassed previous peaks achieved in… Read more…

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This entry was posted in 2013, Fiscal cliff, Investing, Market outlook, Market trends and tagged , , , , , , , , . Bookmark the permalink.

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