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 Square Foot) Annual Rent ($ per Square Foot) Cap Rate (%)
2008 $143 $1.15 6.4%
2009 $121 $1.10 6.8%
2010 $151 $1.13 6.6%
2011 $154 $1.18 6.4%
2012 $156 $1.22 6.1%

Source: Real Capital Analytics; MPF Research.
Updated 5/2013.

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