Search
 

How Will the Apartment Pipeline Absorb?

Multifamily vacancies are rising, supply is unevenly distributed throughout the country and the pipeline remains robust. A new report from Ten-X Research tackles how well new supply is expected to absorb.

By Carrie Rossenfeld | carrierossenfeld | Updated on October 02, 2017

While absorption is expected to pick up in the near term, much will depend upon the take-up of new supply.

IRVINE, CA—Multifamily vacancies are rising, supply is unevenly distributed throughout the country and the pipeline remains robust, according to a new report from Ten-X Research. September’s Ten-X Commercial Capital Markets Update focuses on key fundamentals for this sector and tackles how well new supply is expected to absorb.

According to Reis data, national apartment vacancies ticked up in the second quarter to 4.4%, representing a rise of 10 bps from the previous quarter and 20 bps from a year ago. While completions declined sharply in the second quarter, absorption was at a nearly five-year low and roughly half the rate of mid-2016, the report says. The sector seems to have settled down in terms of vacancies, but there is still an uneven supply pipeline throughout the country that raises questions about absorption.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.