In contrast, the MMI showed starts of affordable rental apartments declining to 38.82, from 42.86 in the previous quarter. The starts index for market-rate apartments remained virtually unchanged at 39.81.
The MMI also indicated continued weakening in demand for rental apartments from the second to third quarter, with calls from prospective renters declining from 49 to 38, effective rents dropping from 47.97 to 41.73 and the percentage of apartments rented within 90 days down from 67.7% to 57.9%.
Builders and property managers were, however, fairly optimistic about prospects for improving occupancies in market-rate rental apartments. Expectations for occupancies of Class A apartments was 50 on the index, nearly 15 points higher than for current conditions.
The survey also indicated that demand for condominiums is expected to remain high.
For more information on the index, click here.
Multifamily Leadership Board Conference Call — Jan. 8, 2004
Industry expert Ron Witten, president of Witten Advisors, Dallas, will brief the members and invited guests of the Multifamily Leadership Board on what to expect in the coming months in terms of trends and hot markets. For information on participation, contact Laura Zaner, 800-368-5242 x8563.
2004 NAHB Multifamily Pillars of the Industry Conference & Awards Gala
Don’t miss the Multifamily Pillars of the Industry Conference and Awards Gala, the premier educational and networking event of the year for the multifamily industry, in Palm Springs, CA, March 28-30. Explore both the current and future state of the multifamily industry. Click here for more information.
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