Apartment occupancy reaches 95 percent nationwide

Vacancies are at a six year low

TRD 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
San Francisco and New York (iStock)

San Francisco rents continued unprecedented slide

San Francisco rents continued unprecedented slide
(Getty)

Affordable apartments could suffer 50% hit to bottom line: Fitch

Affordable apartments could suffer 50% hit to bottom line: Fitch
(iStock)

3.7M renters may lose their homes due to eviction: Census Bureau

3.7M renters may lose their homes due to eviction: Census Bureau
(iStock)

Vegas, New Orleans lead US in missed September rent payments

Vegas, New Orleans lead US in missed September rent payments
Senator Mitch McConnell and House Speaker Nancy Pelosi (Getty)

$2.2T House stimulus package would ban evictions for 12 months

$2.2T House stimulus package would ban evictions for 12 months
arrow_forward_ios

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

Loading...