NMHC: Apartment Sector Still Strong

In contrast to the downturn in the single-family residential sector, conditions in the apartment sector remain strong, according to the National Multi Housing Council's latest Market Trends report. The multifamily industry trade association reported that the number of renters in professionally managed apartments increased last year by the largest amount since 2000, and was as large as that of the previous five years combined. "While the so-called shadow rental market (unsold houses and condos that have left the for-sale market to enter the rental market) may attract some apartment renters, thus far the lowest homeownership rate in almost seven years seems to have increased demand for apartment residences, especially professionally managed apartments," said Mark Obrinsky, the association's chief economist. According to the Washington-based NMHC, the number of renters nationwide is projected to rise by nearly four million households over the next 10 years, and half are likely to rent apartments. The council can be found online at http://www.nmhc.org.