Sales of condos might be off, but the market for rental apartments “remains solidly in the expansion phase of the real estate cycle,” according to a survey of apartment market conditions published by the National Multi Housing Council, an association representing the interest of large apartment firms in the United States.
The quarterly survey showed improving supply-to-demand ratios, with 55 percent of senior executives of apartment-related firms reporting tighter conditions. Rising, too, in most markets, according to the survey, are occupancy rates and rents.The most recent Multifamily Stock Index released by National Association of Home Builders also set an all time high. The MFSI, which tracks the stocks of 24 publicly traded firms including 20 Real Estate Investment Trusts principally involved in owning, developing, and managing multifamily housing, showed a year-over-year gain of 30 percent.
Looking ahead, the demand for apartments should remain strong as long as employment keeps rising, says Mark Obrinsky, NMHC’s chief economist. Additionally, he says, “Although the slowdown in the condo market has had some impact on the investment demand for apartment properties, in every other respect the apartment industry seems to be firing on all cylinders.”
Motivations to RentCost, maintenance-free living, and flexibility were cited by current renters as the most common reasons for renting rather than owning, according to a recent survey conducted by Apartments.com. More than 23 percent of current renters surveyed said they chose to rent for financial decisions. Nineteen percent indicated that relocation flexibility and the lack of a long-term commitment was the primary reason.For those who choose to rent, apartment selection hinges on specific available amenities and community features according to the Apartments.com survey.
Most desirable are:
In-unit washers and dryers
Air conditioning
Acceptance of pets
Ample parking
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