Apartment Sector Riding High Tue, 2011-07-19
The nation's apartment sector recorded revenue growth of 2.4 percent in the second quarter, with effective rents rising 1.7 percent and occupancy climbing to 94.2 percent. The positive numbers surfaced this past week when the Commercial Real Estate Show interviewed a number of multifamily housing experts, including MPF Research Inc. Vice President Greg Willett.
He stated, "Pricing can go to new highs as long as the occupancy is there to support the increases. At this point, it is starting to look like that is the case."
New residents from the 20- to 34-year-old demographic and fewer exits to single-family housing continue to drive demand for rental units.
Looking at the supply side, what few construction projects there are in the pipeline are not likely to hit until the fourth quarter of next year or early 2013.
National Apartment Association (NAA) President Doug Culkin remarked, "Because of lack of availability, vacancies continue to shrink, so our members are having a great market."
Other guests during the segment ranged from Ernie Eden, senior vice president of the Apartment Group at Bull Realty, to Jerry Wilkinson, 2011 chairman-elect of the NAA.
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Digested From "Commercial Real Estate Show: Multifamily Market Riding High"
Citybizlist Baltimore (07/17/11)
Article posted on the National Apartment Association website. To view the original article, Click Here.