Apartment market improvements may halt if housing improves

The apartment market may slow.

Many property management companies could experience a slowing of growth in the apartment market, as the housing market's gains could continue, according to CNBC.

Rental levels improved around the country during the recovery due to a heightened occupancy rate combined with improvements in multifamily permits and starts. However, too high of a new supply could hurt commercial property managers later on, the report explained.

However, the multifamily market may not be hurt from the changing housing situation immediately.

"Modestly favorable home-buying indicators are not coming at the expense of apartment rent trends," Sam Chandan of Chandan Economics told the news source. "Multifamily fundamentals continue to improve in advance of pending inventory additions from the construction pipeline."

The news source stressed that the current housing situation is not a boom, and a sharp improvement may not be seen for a while due to some tight lending restrictions for consumers. Due to recent economic troubles and other factors, many consumers still have a mindset that living in an apartment is better for them than a home, which could persist for a while.

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