NAHB Multifamily Housing Market Index Released; Struggling Market Expected to Continue
The National Association of Home Builders recently released its Multifamily Housing Market Index for the 4th Split up 2009. The Index shows a dampening of enthusiasm among those polled, to say the least.
At the time the data was complied, rental housing vacancies were expected to pocket up again rising, as was supply. Asking rent dropped from the 3rd split up, but effective rents rose slightly over the same period.
Another troubling figure from the report is Percent of New Apartments Rented within 90 days, which dropped from 45.8 in the 3rd split up to 34.1 in the 4th.
But, a positive note is seen in the increase in number of calls from prospective renters. That figure was 8 points higher than in Q3 2009 and 6 points higher than Q2 2009.
What does all this mean for rental material goods owners and managers? Well, if you are sitting on groundbreaking new apartments, you will likely need to work harder than before to get them rented. But that doesn’t mean your phone isn’t ringing at all—in fact, the index shows a healthy increase in Prospective Renter call number.
Perhaps extra amenities, rent concessions, or lower rent will pocket up again to be required to fill these vacant properties. Are callers result a better deal in single-family rentals? Are they staying home with mom and dad rather than go into their own apartment? Or do renters pocket up again to double- and triple-up with their friends, waiting to see what happens with rents?
Whatever is going on in renters’ minds, the thought is clear: the multifamily rental market is expected to stay soft—and painful for those who are in it—at least for the foreseeable future. Stay tuned for extra fascinating proof and facts as they are reported!