Pappas Realty Co... "Commercial Real Estate...Exclusively" in Northeast Ohio since 1957

Thursday, August 23, 2007

Developers Change Focus to Apartments

Developers, who had focused on constructing condominiums and single-family homes, have shifted their focus to the multifamily sector, with the cool down in residential real estate.

As a result, Reis Inc. expects the national inventory of apartment rental units to climb by 94,700 this year, the highest level since 2004. Those additions, coupled with added supply coming from units that had been slated for condominiums but have become rentals, should result in an increase in vacancies to 6.2% in the second half of 2007 from 5.8% in the first half of the year.

Additionally, condo conversions have just about stopped as the country has a nine-month supply of condo units up for sale - that's a greater supply than single-family homes.


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