Multifamily Market update for June 2007http://www.realtor.org/press_room/news_releases/2007/cremf_2007q2_sound_record_investment.html?&WT.mc_t=LS07180

For more information, contact:
Walter Molony, 202-383-1177, wmolony@realtors.org

Commercial Real Estate Sound With Record Investment
WASHINGTON, June 13, 2007 -

Multifamily Market

In many areas, buildings constructed as condos are now being turned into rental projects. The demand for apartments remains strong, but new supply is essentially matching leasing activity.In the apartment rental market – multifamily housing – vacancy rates are projected to average 5.8 percent in the fourth quarter, almost unchanged from 5.9 percent in the fourth quarter of 2006. Average rent should increase 2.1 percent in 2007, after a 4.1 percent rise last year.Multifamily net absorption is likely to total 212,300 units in 59 tracked metro areas this year, down from 229,300 in 2006.The areas with the lowest apartment vacancies include Northern New Jersey; Pittsburgh; Salt Lake City; San Jose; San Francisco and Norfolk, Va., all with vacancy rates of 2.7 percent or less.Multifamily transactions in the first four months of this year totaled $23.2 billion, down 25 percent from the same period in 2006. Essentially half of the purchases were by private investors; condo converters accounted for only 5 percent of acquisitions.