Increasing job growth, NAHB president David Wilson says, is leading to a steady increase in the pool of renters; while agreeable interest rates and solid price appreciation are fueling the demand for more condominium residences, even as developers race to erect properties all around the country. According to the MMI, the index recording the availability of apartment units decreased by 13.2 points from 69.6 in the fourth quarter of 2003 to 56.4 in the fourth quarter of 2004. Correspondingly, the national vacancy rate for apartments went down from 8.5% to 7.8% over the same period.

As for condominiums, the market remains the strongest category, according to MMI, despite a slight decrease in the MMI of 2.4 points from the fourth quarter of 2003, to 57.1 in the fourth quarter of last year. Any figure exceeding 50 indicates market strength, as per NAHB.

And the market's vitality persists in spite of a proliferation of developments. In its National Apartment Report for 2006, Marcus & Millichap finds that "condos continue to account for a growing share of multifamily permitting. NAHB's MMI figures bode well for the market's continued success. "These numbers indicate that a healthier multifamily housing market is emerging, one in which demand more clearly aligns with supply," NAHB chief economist David Seiders explains. "The positive outlook for the economy in general and for job growth in particular, means that the news for multifamily housing should continue to be good."