Quick Facts: Market Conditions



Vacancy and Absorption Rates

Vacancy1 Absorption2
Year Rental Apartment Vacancy Rate (5+ Units) Rented within 3 Months of Completion Rented within 6 Months of Completion
1975 8.3% 70.0% 85.0%
1976 7.8% 80.0% 93.0%
1977 7.1% 80.0% 94.0%
1978 6.7% 82.0% 93.0%
1979 7.6% 82.0% 93.0%
1980 7.1% 75.0% 90.0%
1981 6.4% 80.0% 92.0%
1982 6.5% 72.0% 87.0%
1983 7.1% 69.0% 85.0%
1984 7.5% 67.0% 84.0%
1985 8.8% 65.0% 84.0%
1986 10.4% 66.0% 84.0%
1987 11.2% 63.0% 82.0%
1988 11.4% 66.0% 84.0%
1989 10.1% 70.0% 86.0%
1990 9.6% 67.0% 85.0%
1991 10.4% 70.0% 87.0%
1992 10.0% 74.0% 91.0%
1993 10.2% 75.0% 88.0%
1994 9.8% 80.0% 93.0%
1995 9.5% 80.0% 89.0%
1996 9.6% 73.0% 88.0%
1997 9.1% 72.0% 90.0%
1998 9.4% 73.0% 89.0%
1999 8.9% 72.0% 89.0%
2000 9.2% 72.0% 87.0%
2001 9.6% 72.0% 82.0%
2002 10.4% 64.0% 78.0%
2003 11.4% 59.0% 79.0%
2004 11.5% 61.0% 81.0%
2005 10.4% 62.0% 84.0%
2006 9.9% 64.0% 76.0%
2007 10.3% 58.0% 74.0%
2008 11.2% 55.0% 68.0%
2009 12.3% 51.0% 71.0%
2010 11.6% 61.0% 79.0%
2011 10.3% 59.0% 73.0%
2012 9.3% N/A N/A
Source: 1. Housing Vacancy Survey, US Census Bureau (http://www.census.gov/housing/hvs/); 2. Survey of Market Absorption, US Census Bureau (http://www.census.gov/housing/soma/). Updated 4/2013.
 
Prices, Rents and Capitalization Rates for Apartment Properties
Year Price ($ per sq. ft.)1 Annual Rent ($ per sq. ft.)2 Cap Rate (%)3
2001 74.00 1.02 8.5
2002 80.44 1.01 8.1
2003 78.11 1.02 7.4
2004 92.22 1.04 6.7
2005 109.63 1.07 6.1
2006 114.03 1.11 6.1
2007 109.43 1.16 6.2
2008 107.43 1.15 6.4
2009 87.50 1.10 6.8
2010 97.52 1.13 6.6
2011 110.10 1.18 6.4

1 Real Capital Analytics
2 Source: MPF Research.  Data is for 4th quarter.
3 Source: Real Capital Analytics. Cap rate is net operating income divided by value.
Updated 5/2012. 

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