Just Released current issue of "Market Cycles"
LosAngeles, CA. The Center for Real Estate Studies (CRES) has just released their 1st qtr 2012 publication "Market Cycles". It gives a forward look to more than 150 apartment markets with "buy and sell" recommendations.
- (1888PressRelease) April 25, 2012 - Currently the number of multifamily markets in the 'Sell Phase" is twenty-three, according to Eugene E. Vollucci, Director of CRES. The number of multi-family markets in the "Buy Phase" is twenty-five. Mr. Vollucci said, "strong demographics-based tenant demand, years of underdevelopment, declining vacancies, rising rents, and plenty of available loans could lead to strong apartment investment markets".
Employment is a major factor to the growth of all metropolitan areas. Among the 49 metropolitan areas with a Census 2000 population of 1 million or more, the highest unemployment rates in February were registered in Riverside-San Bernardino-Ontario, Calif., 12.5 percent, and Las Vegas-Paradise, Nev., 12.2 percent. Five additional large areas posted rates of 10.0 percent or more. The lowest jobless rates among the large areas were recorded in Oklahoma City, Okla., and Washington-Arlington-Alexandria, 5.8 percent each.
According to Marcus & Millichap, apartment operations continue to build momentum as favorable demographics blend with an improving employment market. Barriers to homeownership and continued housing market instability also favor apartment performance over the coming year. Apartment construction has begun to ramp-up however, and although new supply will fall short of forecast demand gains in 2012, the deepening development pipeline could begin to slow performance gains
Dollars will continue to flow into multifamily housing, eclipsing other property types, and aggressive developers will overbuild eventually-just not in 2012 or 2013, when new supply just begins to temper renter demand. Investors must be satisfied with modest returns. Cap rates could decline further in. Midsize apartments are the safest real estate investment bet, promising to sustain decent returns even if the economy fails to reignite. That's worth a great deal in uncertain times.
ABOUT THE AUTHOR: Eugene E. Vollucci, is a real estate advisor and Director of The Center for Real Estate Studies, a real estate research organization in Palos Verdes Estates, California and co-author of "How to Buy and Sell Apartment Buildings" Second Edition (John Wiley & Sons, 2004).