Everything seems to be going right for the apartment industry. Demand is growing. New supply remains constrained. Rents are rising a little faster than overall inflation. Occupancy rates have rebounded to normal levels in most markets. Real estate investors still find apartments an attractive asset class and financing is mostly available. For the next few years, most analysts foresee rising rents, higher net operating income, modest price gains, available capital and an active transactions market. Is it all too good to be true? … [The bottom line:] market fundamentals show that some potential threats to the industry’s recovery and growth have been overstated. Apartment fundamentals provide a positive outlook, barring a replay of the single-family housing bubble or the Great Recession. Full article…
