This article from Globe Street.com outlines vacancy rates continuing to decline from 2nd quarter. Building permits are increasing, will we see that in Portland? The article was re-posted on www.josephbernard.net.
Take care,
Bernie
WASHINGTON, DC-Fundamentals continue to be on fire for the multifamily industry. The most recent sign of robust life–apartment vacancy rates continued to decline in the second quarter of 2012, according to the National Multifamily Housing Council’s analysis of U.S. Census Bureau statistics. The vacancy rate for all rental apartments slide from 9.9% last quarter to 9.4% in Q2. A year ago the vacancy rate was 10%. Another data point collected by the NMHC that makes a similar case: The MPF Research national vacancy rate for investment-grade apartments fell from 5.1% to 4.8% during the quarter–a considerable decline from 5.6% a year ago.
Also, the supply pipeline is a healthy one for this asset class, NMHC noted, with multifamily starts falling, while building permits and completions increased in the second quarter. Permits increased to a seasonally adjusted annual rate (SAAR) of 246,300 units, an increase of 6% from the previous quarter and a 35.8% rise from a year ago. Completions rose to a SAAR of 143,300 units, up 4.4% from last quarter and 41% from the 101,700 completions recorded a year earlier, the lowest level since 1968.
Starts decreased 2.9% to a SAAR of 209,700 units from last quarter’s 216,000, but they still remained 48.0 percent above the year-ago level, according to the NMHC. “The slight decline in starts in the second quarter may reflect some pull forward of construction activity in the previous quarter, as an unusually mild winter shifted some project starts earlier. If so, starts should rebound in the coming quarters,” it said in its report.
Click here to view the original article written by Erika Morphy for GlobeSt.com.
This article from Globe Street.com outlines vacancy rates continuing to decline from 2nd quarter. Building permits are increasing, will we see that in Portland? The article was re-posted on www.josephbernard.net.
Take care,
Bernie
WASHINGTON, DC-Fundamentals continue to be on fire for the multifamily industry. The most recent sign of robust life–apartment vacancy rates continued to decline in the second quarter of 2012, according to the National Multifamily Housing Council’s analysis of U.S. Census Bureau statistics. The vacancy rate for all rental apartments slide from 9.9% last quarter to 9.4% in Q2. A year ago the vacancy rate was 10%. Another data point collected by the NMHC that makes a similar case: The MPF Research national vacancy rate for investment-grade apartments fell from 5.1% to 4.8% during the quarter–a considerable decline from 5.6% a year ago.
Also, the supply pipeline is a healthy one for this asset class, NMHC noted, with multifamily starts falling, while building permits and completions increased in the second quarter. Permits increased to a seasonally adjusted annual rate (SAAR) of 246,300 units, an increase of 6% from the previous quarter and a 35.8% rise from a year ago. Completions rose to a SAAR of 143,300 units, up 4.4% from last quarter and 41% from the 101,700 completions recorded a year earlier, the lowest level
since 1968.
Starts decreased 2.9% to a SAAR of 209,700 units from last quarter’s 216,000, but they still remained 48.0 percent above
the year-ago level, according to the NMHC. “The slight decline in starts in the second quarter may reflect some pull forward of construction activity in the previous quarter, as an unusually mild winter shifted some project starts earlier. If so, starts should rebound in the coming quarters,” it said in its report.
Click here to view the original article written by Erika Morphy for GlobeSt.com.
