According to Reis, Inc., the Q3 2013 apartment market occupancies are at all time highs. The multi-family housing market picked up steam at the end of the recession as demand for rental units continued at a strong pace and supply lagged the demand. Victor Calanog, PHD – VP, Research & Economics – REIS, Inc. summarizes the current state of the the multi-family market and highlights supply, demand and current rental rates in the following video summary. Q3 2013 — Apartment Trends — Victor Calanog, PHD — VP, Research & Economics, REIS, Inc. Reis Reports including capital markets, retail, industrial and office can be obtained by clicking HERE.
Although the overall vacancy rates are expected to remain at all time lows, Landlords are not expected to be able to push rents significantly higher, acording to Dr. Calanog. This is primarily due to the fact that rates are also at all time highs despite the fact that salary growth has been non-existent through and coming out of the recession. Several major markets have a number of projects coming on line which will also contribute to pressure on rates and supply increases.
The housing market has seen marked improvement and new constuction has picked up in many markets. Economist question the impact of increasing interest rates on this demand. Potential purchasers may be pushed back into the rental market as increased borrowing costs squeeze ratios and make the affordability and qualifying for puchasers of mid-priced housing more difficult.