Rental Apartment Market Dipped in Second Quarter

[missmanors]

The National Association of Home Builders has released the results of its latest Multifamily Rental Market Index, showing that the rental apartment market has dipped in the second quarter, following the downturn in the housing market in general.

Builders are reporting fewer multifamily units being built now than in the same quarter last year. The MRMI report states that rental apartments have dropped to 38.1 as compared to last year's 52.9. It's believed that the glut of houses on the market, combined with job losses is now hitting the rental housing market, especially now that it's more difficult for developers of multi-family units to get needed capital for new construction.

Multi-family developers are more optimistic when it comes to expected conditions for the next 6 months for market-rate rentals than for affordable apartment rentals, with the supply index standing at 40.5 for market-rate and 33.3 for affordable units. Those components were at 55.6 and 45.7 at this time last year, respectively.

It's hoped that the housing stimulus legislation that was signed into law by the President will be effective in stimulating demand and getting the capital markets to work properly again, which will be good for the housing market in general, including multi-family units.

[homealone]

Some very intresting information here, thanks for posting this.
With the economy being out of wack right now and many months prior, it is sending everything else spiraling as well. I think everyone has high hopes that soon everything will be getting back to a more of a normal place.