The apartment sector today is in a good place—a very good place—and the future looks just as good, according to a survey conducted by National Real Estate.
“We’re not in a boom market,” says Nick Ryan, CEO of The Marquette Companies, a Naperville, Ill.–based real estate firm with a portfolio of 11,000 apartment units. “We’re in a strong, healthy market that’s going to last for a long period of time.”
The survey, which solicited opinions from 1,001 completed surveys, including 947 respondents involved in the multifamily sector from across the nation, uncovered high levels of optimism. From occupancy and rental rate growth tolevels and financing availability, respondents report favorable conditions for the apartment sector.
“We believe this cycle has room to run for both the economy and the apartment industry,” said Timothy J. Naughton, chairman, president and CEO of AvalonBay Communities Inc., in the REIT’s most recent earnings conference call. “Job growth is really only at the point now where the economy has just recovered the 8 million jobs it lost from the last downturn. And while cumulative job growth so far this cycle is similar to last cycle, it’s only about one-fourth of what we experienced in the ’90s, when we had a longer economic cycle. And so from our standpoint, the labor market is up [and there’s] plenty of capacity to support economic growth.”
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