- San Antonio. Conditions are ripe for development here, he noted, although some wavering in market fundamentals earns this market an "A-."
Three “A” markets for acquisitions are:
- Boston. With relatively few new units coming on line, overbuilding has not been a problem here. But a soft economy and weak demand have generated the deepest rental concessions in this expensive market for “perhaps the first time in history,” Witten said. Nevertheless, the upside here looks good.
- Orlando. The city’s “growth potential is so strong that you see the recovery there on steroids,” he said. A post-Sept. 11 refocus on domestic travel that has been reinforced by a declining dollar continues to focus growth on this vacation destination.
- San Jose. New construction is happening in the Silicon Valley, and a decline in rents is stimulating demand in a market where home prices remain out of sight even after some downward adjustments. Two to three people can now afford to live in an apartment in this market, Witten said, instead of three to four.
Witten’s forecast for the top five markets for rental apartment starts this year is: Houston, with 14,100 units; Atlanta, 11,300; Dallas, 9,800; Washington, D.C., 8,400; and Los Angeles, 8,000.
Contenders for the top five slots won’t be coming in with as much production in 2004, Witten noted. His picks: Dallas, 9,700 apartments; Washington, D.C., 8,600; Los Angeles, 8,400; San Diego, 6,100; and Miami, 6,000.
[ Go to Top ]
|