Apartment occupancies rose in the third quarter at the slowest pace in more than two years as record low mortgage rates in the U.S. spur would-be renters to purchase homes instead.
Multifamily vacancies fell to 4.6 percent as of Sept. 30 from 4.7 percent in the second quarter, Reis Inc. (REIS) said in a report released today. The decline was the smallest since the apartment recovery began in early 2010, and landlords leased fewer units on a net basis than during the first and second quarters, according to the New York-based research firm.
“We are starting to lose renters to home purchasers,” said Matthew Gardner, principal of Seattle-based Gardner Economics LLC, a land use, real estate and economic advisory company. “As every rental project is increasing its rents and has been for a long time, ultimately it gets to the point where owning becomes cheaper than renting.”
Read more...Landlord Gains Slow as Homebuying Tops Renting: Mortgages - Bloomberg
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