For the third year in a row, the U.S. economy continues sluggish growth as it remains impacted by macro factors. Despite the poor economic showing, the multifamily property sector nationally continues strong, bolstered by a net absorption of more than 30,000 units in Q2 and a national multifamily vacancy rate of 4.7%.
On the economic side, If the 1.9% GDP growth reported during Q1 2012 weren't enough, other factors weighing in include European issues, the general election and the expiration early next year of payroll and Bush-era tax cuts. According to the Marcus & Millichap Real Estate Investment Services' Q3 Economic and Apartment Outlook report prepared by vice president of research services John T. Chang, all of this will lead to continued problems for the economy, including a weaker consumer spending base and contraction in new factory orders. All of this, combined with an 8.2% unemployment rate encouraged the Federal Reserve to downgrade its near-term outlook for the economy.
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