Apartment demand slows during third quarter

Apartment demand lessened during the third quarter.

The multifamily market showed slower progress during the third quarter than in previous points of the recovery, according to a report from Reis.

Total unit absorption during the quarter totaled slightly more than 22,600 during the third quarter, which was far below the second quarter's figure of approximately 31,000 units. Additionally, it was a significant decline from the first quarter's figure of more than 36,400 units, HousingWire reported, citing the analysis company.

Property management companies should still see effective rent growth improve by approximately 3 percent in the coming years, the report noted. Despite this, it is necessary for some to be cautiously optimistic with market recovery.

Total vacancy rates have declined in recent months, but the level of the drop has lessened, the report explained. The third quarter experienced a 10-basis-point decline, while the second quarter's figure fell 20 basis points. In both 2010 and 2011, each vacancy level declined by 35 basis points, on average. Overall, the latest level was the slowest rate of decline since recovery started two years ago.

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