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MULTIFAMILY OUTLOOK: Maintaining Equilibrium Remains a Challenge

NEW YORK CITY-Some cities cut back on building for fear of an oversupply that did not develop; elsewhere the problem is keeping up with demand.

By John Howe | Updated on January 02, 2001

NEW YORK CITY-When it comes to housing, different parts of the country face dissimilar conditions. In some Southwestern cities, unfounded fears of overbuilding led to declines in new housing starts that are expected to drive up rents, while in Southern California there is little construction to meet the demand of a growing population. Portland, on the other hand, is just now recovering from the overbuilding of a couple of years ago. Here is a rundown on what’s going on around the country by GlobeSt.com’s reporters. Click on the appropriate link to connect with the complete story.

For the first nine months of 2000, private investors accounted for 68% of Orlando’s $209 million in apartment sales. This is a substantial increase over 1999 when they inched out institutional investors by taking 51% of the $370 million in total sales. These figures appear in a new report by CB Richard Ellis to be published this month, which also indicates that for the first three quarters of last year, 4,235 units were sold for $209 million or $49,350 per unit. For the same period the year before, 7,559 units changed hands for $304 million or $40,216 per unit, and in 1999 the average per unit price amounted to $39,025 for the sale of 9,481 dwellings for $370 million. “Overall investment activity is down, but the numbers show it’s still a healthy market,” says Robert W. Miller, first VP with CB Richard Ellis.

The Central Florida multifamily market remains strong, with 93% of the units occupied. Of the 12,590 units that came to market last year, 9,387 were absorbed. In South Florida, Miami-Dade led the way in condo sales, accounting for 80.1% in the first nine months compared to Palm Beach County with 10.3% of the market and Broward County with 9.6%.

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