Thursday, October 13, 2016

REIS: Rent Market Softens Under Surplus of New Construction in Q3 via Multifamily Executive

REIS’s newly released data on apartment vacancy, absorption, consumption, supply and demand, and rent trends show some softening in the rent market in the third quarter of 2016. High construction levels and weak economic conditions in the beginning of the year have predicated this deceleration, according to REIS economist Barbara Denham. A concurrent drop in new multifamily permits suggests that developers are concentrating more on leasing the existing surplus of units.

Excess of New Units Won't Necessarily Cause High Vacancy Rates

Construction exceeded absorption for the sixth quarter in a row in Q3, but the margin between new construction and net absorption (37,693) is only 51 units.

Read more...REIS: Rent Market Softens Under Surplus of New Construction in Q3 | Multifamily Executive Magazine | Rent Trends, Rents, Supply and Demand, Occupancy and Vacancy Rate, Construction, Absorption Rates, business intelligence, Vacancies, Rent Growth, Rental Market, Markets, Forecast, new developments, Effective Rents, Reis

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