From MHN Online:
Apartment Realty Advisors with its latest report:
- Rents increased sequentially from 2Q 2010 to 3Q 2010 in 25 of 30 major markets
- Occupancy up in 21 markets of 30, with 8 flat and one down (Portland, OR)
- New construction, only Boston saw an increase (woo hoo!)
ARA thinks construction might increase in tighter markets:
“Public REITs have a few new developments underway, generally on owned land,” Gary Kachadurian, chairman of ARA, tells MHN. “However, for the majority of developers, lenders are unwilling to trend rents forward enough to make new construction viable. The first markets that might show signs of new construction are markets where the ability to acquire below replacement cost has evaporated, like Washington, DC.”
Hmm wonder why DC real estate is in so much demand…hmmm…
Read more HERE.
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