RED CAPITAL GROUP Releases Midyear Multifamily Report

Employment growth among Americans in their 20's that spanned between May 2010 and May of this year helped spur the strongest apartment demand observed in a generation, according to a new report.

However, RED CAPITAL GROUP LLC's ‘Multifamily Housing Industry 2011 Mid-Year Review and Second Half Outlook Report’ observes, substantial winter and spring gains morphed into year-on-year losses in the summer that pose a potential threat to an apartment-sector recovery.

According to the report, 21 of the 50 markets monitored by RED posted higher absorption in the second quarter than the first. Fifteen of the markets, including institutional-investor favorites such as Boston and San Francisco, registered at least a 40% sequential quarter unit absorption decline.

The report also finds that export-driven manufacturing revivals fueled stronger-than-expected hiring in corners of the Heartland, such as Nashville, Tenn.; Pittsburgh; Columbus, Ohio; Louisville, Ky.; and St. Louis. Also, high-tech hubs – e.g., San Jose, Calif., and Seattle – and Texas metro areas – Dallas, Fort Worth, Houston and Austin – posted the strongest job growth in the spring. Milwaukee led the nation in year-over-year job growth, RED says.

Authored by RED researchers Daniel J. Hogan and Joseph M. Mandeville, the report is available for download, with registration, on the company's website.

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