Apartment occupancy reaches 95 percent nationwide

Vacancies are at a six year low

New York /
Jun.June 22, 2014 04:00 PM

 National apartment occupancy in May reached its highest level in six years, according to Axiometrics, an apartment data and research company. Across the U.S., 95 percent of all units are filled, even as multi-family construction booms.

“It’s a pleasant surprise because it’s coming at a time when new supply is flooding the market,” Stephanie McCleskey, Axiometrics’ director of research, told CNBC. “One reason occupancy is rising is that, not only are people moving into these new units, but they’re also moving into Class B units at a lower price point.”

The success of the multi-family sector has come as a surprise to some investors, who pulled out of multifamily REITs last year, to focus on surging home sales, according to CNBC. The S&P index of residential REITs is now up nearly 14 percent from a year ago and up nearly 20 percent year-to-date.

“The rent-buy math remains generally favorable for our apartment coverage universe,” according to report from Deutsche Bank. “Though pending supply remains a concern for certain apartment markets in 2014 and 2015, recent revenue growth trends were better-than-expected suggesting that strong demand, buoyed by improving rent-buy dynamics, is helping to offset increases in supply.” [CNBC]Christopher Cameron


Related Articles

arrow_forward_ios
Clockwise from top left: 162 West 13th Street, 325 Avenue Y in Brooklyn, 1281 Viele Avenue in the Bronx (Credit: Google Maps)
Here’s what the $10M-$30M NYC investment sales market looked like last week
Here’s what the $10M-$30M NYC investment sales market looked like last week
Real Capital Analytics data showed that New York’s multifamily market had a very slow July. (Credit: iStock)
New NYC rent law “beginning to shut down investment”
New NYC rent law “beginning to shut down investment”
Numbers were down across the board (Credit: iStock)
New York’s multifamily market had its slowest first half of the year since 2011
New York’s multifamily market had its slowest first half of the year since 2011
2111 Frederick Douglass Boulevard and 214 West 109th Street, two buildings as part of the portfolio (Photos via Google Maps; StreetEasy)
Black Spruce eyes $700M+ valuation for multifamily portfolio
Black Spruce eyes $700M+ valuation for multifamily portfolio
Paul Fishbein pretended to own properties across the city, pocketing rental assistance checks in the process, authorities said. (Getty)
Landlord imposter pocketed $1.5M in rental assistance: Authorities
Landlord imposter pocketed $1.5M in rental assistance: Authorities
E&M Management Founder Irving Langer. (E&M, Getty)
Multifamily giant Irving Langer pays off defaulted loan after selling properties
Multifamily giant Irving Langer pays off defaulted loan after selling properties
CDC director Dr. Rochelle Walensky (Getty, iStock)
CDC extends national eviction ban through June
CDC extends national eviction ban through June
Bolivar Development's Peter Fine and 401 West 218 Street. (Google Maps)
10 biggest new project filings in NYC
10 biggest new project filings in NYC
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...