With vacancy declines slowing to a crawl and rent increases constrained by meager wage growth, market observers are wondering whether apartment fundamentals have peaked. This formulation is imprecise, incorrect and fails to capture the changing dynamics of the sector.
Vacancy declined by 10 basis points during the third quarter to 4.2 percent. Although vacancy compression has clearly slowed over the last couple of years, the decline of 10 basis points does represent a slight acceleration versus last quarter when vacancy was unchanged.
Read more...Have Apartment Fundamentals Peaked? | Multifamily content from National Real Estate Investor