Apartment market fundamentals continued to be rock solid through the second quarter, becoming the first CRE property sector to make the full transition from recovery mode into expansion and see increasing rents, declining vacancy and a burst of new construction.
Of the four major property types, apartments possess the best recovery story with vacancy rates compressing by 190 basis points since the beginning of 2010. Rents have recovered in 30 of the 54 largest U.S. markets.
“Apartments continue to have very solid fundamentals. There’s no lack of demand, and we’re starting to see supply coming online,” commented senior real estate economist Erica Champion this week during CoStar’s Mid-Year 2012 Multifamily Review and Outlook.
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