The forecast for rental apartments is still positive, according to the Q1 2014 Commercial Real Estate Outlook, which was released this week by the National Association of Realtors. In fact, according to the outlook, the apartment sector will remain the strongest kind of commercial real estate into 2015, as it has been for a number of years now.
NAR predicts that apartment vacancies nationwide will edge up from 4 percent, as of the second quarter of 2014, to 4.1 percent in Q2 2015. Though that represents a small increase, it doesn’t mean a fundamental change in the landlord-tenant dynamic. Vacancy rates below 5 percent are generally considered a landlord’s market, with demand justifying higher rent.
Read more...Apartments Still a Landlords’ Market, Says NAR | Multi-Housing News Online