Nationally, apartment market completions hit a historic low in 2011, and tight supply conditions remained prevalent in Q1 2012. With demand for rentals benefiting from the continued moribund state of the for-sale housing market, muted inventory growth is helping boost the performance of apartment properties around the nation. Only 7,342 apartment units came online in Q1 2012 – the lowest quarterly figure for new completions since Reis began publishing quarterly data in 1999.
Risks may manifest later in the year, however. With multifamily remaining one of the few shining stars in commercial real estate, developers have begun building properties to take advantage of rising incomes. Unless there are delays, Reis expects about 66,000 units to come online in 2012. That is about 150 percent of the rate of supply growth in 2011. Even more units are slated to come online in 2013, somewhere in the order of 150,000 units in the 79 main markets that Reis tracks.
Read more...Keep a Close Eye on Apartment Completions Via REISreports.com
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