Muoio: Why (and When) the Recovery Will Lose Steam via Multifamily Executive Magazine

There’s no doubt about it: The apartment market remains robust.

Vacancies have fallen below 5 percent for the first time since 2001, while rents continue to increase and have already surpassed the previous peak level. Yet, amid this standout success, we are now seeing some of the demand dynamics shift.

The reason the apartment market could sustain such a robust recovery—especially in the face of such a disappointing economic backdrop—was the decoupling of demand from broader economic trends. Most of the incredible absorption that has driven vacancies so low, so fast, has been powered by the shift from homeownership to renting.

Read more...Muoio: Why (and When) the Recovery Will Lose Steam - Economics - Multifamily Executive Magazine