According to the National Association of Realtors' (NAR) latest report, the Q1 Multifamily vacancy rate was 7.3% down slightly from 7.4% in Q4 2009. NAR predicts vacancies will be down to 6.3% nationally by Q1 2011 as absorption rates climb.
NAR also predicts that in 2010, 145,600 multifamily rental units will be absorbed, followed by an absorption of 214,500 in 2011. It anticipates that negative net absorbtion will only occur in Q4 2010 when 39,000 units come to market, representing the last of the major developments funded before the 2008 credit freeze.
NAR predicts multifamily rents will regain 1.2% in 2011, having fallen 3.6% in 2009 and 1.5% this year.