Housing data released by the Commerce Department confirmed Fitch's expectation that the housing market continues to gain traction, increasing the likelihood of moderating multifamily demand growth. Housing permits, a proxy for future construction, were up 27% and 4% higher on a year-over-year and quarter-over-quarter basis, respectively, for November 2012.
In a report issued last week ("U.S. Equity REITs: The Key Issues for Multifamily"), Fitch estimated that 80% of the growth in demand for multifamily properties from 2009-2011 was attributable to the decline in the home ownership rate. Looking forward, Fitch expects decreasing rental affordability and the increasing relative/absolute attractiveness of home ownership will cause multifamily demand and operating fundamentals to more closely track economic growth. Today's data supports Fitch's expectation that a recovery in housing is underway.
Read more...Housing Data Released By The Commerce Department Underscores Risks to Multifamily According to Fitch - Multifamily News Headlines – Breaking News, Stories, Top Headlines :: MultifamilyBiz.com
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