Despite tepid job growth, net absorption in the apartment market continues, according to Hessam Nadji, managing director of Marcus & Millichap Real Estate Investment Services, who spoke at a webcast today, entitled, “2012 U.S. Economic and Apartment Market Outlook.”>
While there are several reasons for this continued absorption despite a real economic recovery, Nadji pointed to the fact that the majority (71 percent) of those who have been hired in 2010-2011 are those in the 20- to 34-year-old range—that is, those who had moved out of their parents’ home, creating positive household formation.
Even with a moderate recovery pace, 57 percent of attendees believe that renter demand will be even stronger over the next year, and 63 percent believe demand will stay about the same, even without additional job growth. And even with a growing supply, Nadji does not believe this will derail a recovery (with the exception, perhaps, of some pockets).
Read more...Will Renter Demand be Even Stronger in 2012? Industry Says Yes
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