US Apartment Demand Bounces Back
Great article from CoStar on the big "bounce" in Apartment demand after a slow start to 2017. The article also mentions what is becoming apparent to investors: construction projects are definitely slowing and that bodes well to supply/demand fundamentals in the upcoming couple of years.
From the Article:
Renter demand for apartments continued to accelerate in the third quarter of 2017 as the market absorbed more than 70,000 units and the overall national vacancy rate for U.S. apartments continued to trend lower after turning sharply up at the end of last year. "The third quarter (vacancy) numbers are a welcome sign (for owners) after the sharp increase at the end of last year. Overall, it was a strong third quarter, which was a nice surprise," said Michael Cohen, CoStar director of advisory services, during this week's State of the Multifamily Market Q3 2017 Review and Outlook. "We're still in the golden age for multifamily, but we're seeing signs of a gradual slowdown in the apartment market." ...
Terry Considine, chairman and CEO of Apartment Investment & Management Company (NYSE:AIV), told investors last week he's expecting the broader economy to continue its steady growth while demographics will support continued solid demand for apartments.
However, "competition from new supply will continue, although there will be rotation as to which submarkets are exposed," Considine said.
"We're still seeing a slowdown both in terms of starts and deliveries in our markets, which has more than to with the overall tightening of money for developers and [shortage of] qualified construction workers," noted John Williams, chairman and CEO of Preferred Apartment Communities, Inc.