MULTIFAMILY MARKET OVERVIEW

Absorption was up 11% in the third quarter over the 2nd quarter this year, but still down from the first quarter and second two quarters of last year. Vacancy is 6.57%, decreasing almost 4% since last quarter. Rents are virtually the same, but the price paid for those units is up nearly 21%, likely due to preponderance of larger, newer properties selling. The average Cap Rate showed slight compression down to 5.35% but we expect expansion with rates remaining stubbornly high. There are over 15K units under construction comprised of a small number of very large projects. The total unit inventory is just 1,235 more than in Q2 and just 5,246 over Q3 last year. READ MORE >