Third Quarter Strength Boosts Multifamily Market

Third Quarter Strength Boosts Multifamily Market By Parke M. ChapmanBuoyed by the single-family housing downturn and fewer tenant concessions, apartment fundamentals improved sharply during the third quarter. One caveat is that a handful of Sunbelt markets with an over-abundance of unsold condominium units actually saw their fundamentals weaken during the quarter. Manhattan-based real estate consulting firm Reis Inc. reports that average asking rents increased by 1.3% during the third quarter. Effective rents also increased by 1.4% to an average of $964 per unit, the largest quarterly increases in a year. Vacancy also fell by 20 basis points to 5.6% at the end of September.Read full story here.