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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
1989 10.1% 70% 87%
1990 9.6% 67% 85%
1991 10.4% 70% 86%
1992 10.0% 74% 91%
1993 10.2% 73% 88%
1994 9.8% 80% 93%
1995 9.5% 73% 89%
1996 9.6% 72% 88%
1997 9.1% 74% 90%
1998 9.4% 73% 89%
1999 8.9% 72% 89%
2000 9.1% 72% 87%
2001 9.6% 64% 82%
2002 10.4% 59% 78%
2003 11.4% 61% 79%
2004 11.5% 62% 81%
2005 10.4% 64% 84%
2006 9.9% 58% 76%
2007 10.3% 55% 74%
2008 10.8% - -
1. www.census.gov/hhes/www/housing/hvs/hvs.html 
2. www.census.gov/hhes/www/housing/soma/soma.html 
Updated 1/4/2010


Prices, Rents and Capitalization Rates
for "Class A" Apartment Properties
Year

Price
($ per sq. ft.)

Annual Rent
($ per sq. ft.)

Cap Rate
(%)
2001 70.02 1.04 8.56
2002 77.94 1.02 8.15
2003 78.68  1.02 7.42
2004 100.37  1.09 6.84
2005 112.06  1.08 6.12
2006 111.60  1.16 6.05

 2007

 129.82 1.26 6.13
2008 101.62  1.22 6.40
Source: Real Capital Analytics (price per square foot and cap rate) and M/PF Yieldstar (annual rent per square foot). Cap rate is net operating income divided by value. Updated 5/29/2009

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