Multifamily Permitting Jumps 37.8% in March via AXIOMetrics

The U.S. Census Bureau posted its March 2013 residential permitting numbers (not seasonally adjusted) by metropolitan statistical area (MSA) on Thursday, April 25. For the month, annual multifamily (MF) permits increased by 37.8% at the national level from the comparable period a year ago. With the March MF permit number at 280,418 units, annual MF permitting (not seasonally adjusted) has now been above 200,000 units for 13 consecutive months.

While still healthy, apartment market fundamentals moderated in March 2013 compared to March 2012. Nationally, annual effective rent growth in March 2013 was 3.2% compared to 4.1% in March 2012. Occupancy inched up a bit from 94.1% in March 2012 to 94.4% in March 2013. The increase in occupancy was primarily due to late recovering markets posting occupancy growth and others holding on to their already high occupancy rates. By the end of 2013, Axiometrics forecasts U.S. apartment occupancy to reach 94.9%, and effective rent growth to measure 3.6%. The occupancy forecast is 60 basis points above the 2012 rate but the rent growth forecast is 20 basis points below the 2012 rate.

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