MPF Research Predicts 95 Percent U.S. Apt Occupancy by June 2012 Mon, 2011-07-11
MPF Research's Greg Willett expects the national apartment occupancy rate will increase to approximately 95 percent by this time next year, which will almost certainly mean an increase in monthly rents.
With foreclosures still weighing down the housing market and consumers growing increasingly concerned about continued declines in home prices, moving into rental housing has become an increasingly appealing option for many.
The strength of the apartment sector is attracting a lot of interest even from newcomers to multifamily housing, reports Stacy Hunt of Greystar Real Estate, which manages approximately 187,000 apartments nationwide. Hunt, former president of the Houston Apartment Association, notes that such major home builders as Lennar Homes are now building rental apartments. The Hines development firm recently branched into the apartment industry for the first time since its 1957 founding.
Furthermore, Hunt notes, the newcomers are staffing up with expertise from the apartment industry and are expected to have few difficulties transitioning into multifamily development. In terms of potential pitfalls and roadblocks down the line, the ability to finance new apartment construction could be disrupted by proposed reforms of Freddie Mac and Fannie Mae.
Article Digested From "Cheap Rent? Forget About It as Apartment Living Trumps Home Ownership in the Recession" - CultureMap Houston (06/28/11) by Ralph Bivins Back to article index
Click Here to view the original article published on the National Apartment Association website.