“This quarter’s MMI results confirm that the turnaround we saw beginning during the first part of 2004 has solidified,” said NAHB President Bobby Rayburn. “With the economy generating additional jobs, new households are forming, and that means that there’s a greater demand for rental housing.”
The index tracking the number of rental apartments available for rent continued its downward trend, registering a six-point drop from 63.7 to 57.7 from the third quarter of 2003 to the third quarter of 2004. At the same time, the volume of calls from prospective renters saw a healthy increase, rising nearly 15 points on the index to 52.9, up from 38.2 a year earlier.
Condos are still the major story in the multifamily housing market, according to the latest MMI. Even with the current supply index up, survey respondents said they expect even higher production six months from now.
“Condos have great appeal to those who want the benefits of apartment living but who also want to buy a home during this time of low interest rates,” said NAHB Chief Economist David Seiders. “But, with interest rates starting to move back up, we are also starting to see stabilization in the rental apartment market.”
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