A new generation of multifamily apartment projects is under construction across America. Within the next year or two thousands of brand new properties will be competing toe to toe with single family landlords for tenants. Will investors be up for the challenge?
Soaring vacancy rates and rising rents have driven multifamily construction to the highest level in years. The nation’s apartment-vacancy rate in the fourth quarter fell to its lowest level since late 2001 In the fourth quarter, the vacancy rate fell to 5.2 percent from 6.6 percent a year earlier and 5.6 percent at the end of the third quarter, according to Reis. Increases will likely top the 10 percent mark annually for the next couple of years, according to John Burns of John Burns Real Estate Consulting quoted in CNNMoney last year. (See Rental Outlook 2012: The Good Times Roll on.)
Read more...Can Investors Meet the Multifamily Challenge? via BiggerPockets.com
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