Monday, October 8, 2012

U.S. Multifamily Trend: Apartment Demand Slowing But Not Stalled

CNBC reports that the multifamily real estate analysis firm REIS has new data showing that "Apartment vacancies fell by just ten basis points in the third quarter of 2012, from 4.7 percent to 4.6 percent. . . . While that is still an improvement, it is the slowest rate since the recovery began in 2010."

According to CNBC, many analysts still believe apartment demand will remain robust in the near term, relative to where it has been historically, as so many potential home buyers are shut out of the mortgage market due to damaged credit. They also point to a shift in the homeownership mentality of younger Americans, who have seen what the housing crash did to their parents and who are gravitating more and more to urban centers.

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