Experienced property managers and multifamily investors keep a close eye on national inventory. The laws of supply and demand suggest that when thousands of units come on line in a few months, occupancy rates and rent potential fall. But, 2014 hasn’t followed traditional patterns. Knowing there’ve been about 180,000 units added over the past twelve months – and the third and fourth quarters should add thousands more – it seems implausible that occupancy rates are the best they’ve been in a decade and a half.
Why? There are a number of factors driving this phenomenon. Let’s look at three.
Read more...Still Growing Strong: 3 Reasons Occupancy Rates Are Higher Than Expected