Nearly every aspect of the multifamily industry appears to be on the right track and has been improving steadily since 2010, a survey reveals.
A National Multi Housing Council survey shows three of the four facets of the apartment industry reported on - market tightness, debt financing and equity financing - grew in the quarter ending in January from the previous three-month period. The only area of the multifamily market not to see an increase during the quarter was sales volume, which slipped modestly.
"Investors continue to view apartments as a preferred asset class in today's environment and long-term demographic changes favor rental housing," said NMHC chief economist Mark Obrinsky. "However, we expect the pace of improvement in transaction activity to ease somewhat moving into 2012."
While the market may not make as big of gains as it did in 2011, Obrinsky stated real estate records point to solid growth this year, with many apartments expected to be completed before 2012 ends.
Demand for apartments should remain strong through the end of the year, according to the National Association of Realtors. A forecast from NAR shows the group expects the national vacancy rate to dop from 5 percent in the fourth quarter of 2011 to 4.3 percent in the same period in 2012.