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2009 4th Quarter Apartment Building, Multifamily Market Results
Performance in the multifamily (five or more units) housing sector continued to be weak in the fourth quarter of 2009 but showed signs of improvement. In the production sector, the number of starts and completions fell, while the number of building permits increased. The absorption rate for new rental units rose during the fourth quarter of 2009 and the rental vacancy rate for multifamily units declined.
■ In the fourth quarter of 2009, builders took out permits for 104,000 (SAAR) new multifamily units, up 10 percent from the third quarter of 2009 but down 47 percent from the fourth quarter of 2008.
■ Builders started construction on 74,000 (SAAR) new multifamily units in the fourth quarter of 2009, down 6 percent from 78,000 units in the third quarter and down 60 percent from 184,000 units in the fourth quarter of 2008.
■ Builders completed 244,000 (SAAR) multifamily units in the fourth quarter of 2009, down 5 percent from 255,000 units in the third quarter and down 19 percent from 303,000 units in the fourth quarter of 2008.
■ Market absorption of new rental apartments increased in the fourth quarter of 2009. Of the total number of new apartments completed in the third quarter, 52 percent were leased in the first 3 months after completion. The market absorption rate is 8 percent higher than in the third quarter of 2009 but is 2 percent lower than in the fourth quarter of 2008. The multifamily rental vacancy rate in the fourth quarter of 2009 was 12.5 percent, down from 13.1 percent in the previous quarter but up from 11.2 percent in the fourth quarter of 2008. In contrast, the rental vacancy rate for single-family units was 9.6 percent in the fourth quarter of 2009, down from 9.9 in the third quarter and 10.0 percent in the fourth quarter of 2008. The vacancy rate for all rental units in the fourth quarter of 2009 was 10.7 percent, down from 11.1 percent in the third quarter but up from 10.1 percent in the fourth quarter of 2008.
This is a blog post for Real Estate Professionals, Investors, Landlord, Property Manager, and Property Management Companies. Multi-family, Apartment Residential Rental Market 2009 4th Quarter Results – Vacancy Rate Declines is brought to you by SimplifyEm Pay Rent Online and Property Management SoftwareYou might also want to read:
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