By Walter Molony
The apartment rental market – multifamily housing – is likely to see vacancy rates edge up only 0.1 percentage point from 3.9 percent in the third quarter to 4.0 percent in the third quarter of 2014, with construction rising to meet increased demand. Generally, vacancy rates below 5 percent are considered a landlord’s market where demand justifies higher rent.
Areas with the lowest multifamily vacancy rates currently are New Haven, Conn., at 1.9 percent; Syracuse, N.Y., 2.0 percent; New York City and San Diego, at 2.1 percent each; and Minneapolis, 2.2 percent. Average apartment rents are forecast to rise 4.0 percent this year and another 4.0 percent in 2014. Multifamily net absorption is projected to total 266,700 units in 2013 and 259,800 next year.
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