Apartment Sector Is Poised for Recovery
By Caitlin Jones
1 min read
Tax Credit Advisor — November 2010 ““ The apartment market is gradually improving and headed for a major uptick a few years out, once employment and new household formation levels are robust again, according to officials at Marcus & Millichap, the national real estate brokerage firm. “Clearly we’ve reached bottom and the market is poised for pretty good recovery in the apartment sector,” said Linwood Thompson, speaking on a September 28 Webcast along with Hessam Nadji and William Hughes. The trio, discussing multifamily rental housing generally, noted that the favorable trends and outlook are the result of positive signs regarding the economy, demographics, the capital markets, and transaction activity. National economic growth is occurring, albeit at a slowing rate; gradual improvement should continue into 2011 and 2012; and a dip back to recession is unlikely. The current drag is reluctance by corporations to hire permanent workers because of various uncertainties. “About the middle of 2011 we should see a pretty healthy pickup in job growth,” said Nadji, referring to the primary driver for new household formation and renter demand. Read More…
