Fitch: statistics suggest U.S. multifamily reaching peaks via Reuters

The rise in rents and occupancies in the multifamily sector is
close to the peak last seen before the beginning of the recession, according to Fitch. However, we believe that favorable demographics and a limited new supply will ensure the market will not overheat.

Multifamily price data is regionally specific and can be challenging to use as an overall measure. Based on our own research and a recent report by Federal Home Loan Mortgage Corporation (Freddie Mac), sales of multifamily properties have seen a rise in prices since the lows of late 2009, but they still remain approximately 25% below their peak. The real estate data specialist REIS calculates net effective rents on a national level at or near peak levels.

Evidence of a reduction in multifamily vacancy is more complete and sends a clearer message. According to REIS, current national vacancy is 5.2%. This is the lowest recorded vacancy since 2001 and is meaningfully lower than the 8% in 2009. The significant reduction in vacancy can largely be attributable to the lack of new supply that has come on line since the start of the recession.

Read more...TEXT-Fitch: statistics suggest U.S. multifamily reaching peaks | Reuters