Multifamily, it is clear, is currently the rock star asset class for commercial real estate with new statistics from NAREIT bearing this out. The industry association reports that apartment REIT price returns are up 225% through February 2012 since the REIT market’s trough in March 2009.
What is particular telling about NAREIT’s research, however, is not just how well apartment REITs have done to date—but how long that performance can continue. A lot longer, it turns out, than many in the industry currently realize.
“If anything I don’t think the market appreciates how many people are bunking up with somebody and waiting for the chance to move into their own home,” NAREIT vice president of research and industry information Calvin Schnure, tells GlobeSt.com. NAREIT finds there is a record level of pent-up demand for apartment space, with an approximately 2.5-million unit supply-demand imbalance in apartment inventory.
Read more...GlobeSt.com - Shadow Demand Will Keep Multifamily Bubble at Bay for Years - Daily News Article
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