Multifamily Market Trending Upward

WASHINGTON, DC-Demand for multifamily options is on the rise across the US, the National Association of Home Builders has concluded from its most recent Multifamily Market Index. The recently released survey–which looks at fourth quarter 2004 supply and demand indicators garnered from builders and property owners located in all regions of the country–reveals that the apartment market is on the rise and an already hot condominium market is maintaining its steam, despite a steady influx of developments.

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.