It’s not just new houses that have builders worried. A National Association of Home Builders report shows a dramatic loss of confidence in the rental market in the second quarter.
New rental starts nationwide plunged to a bearish 38.1 on the NAHB’s 2Q Multifamily Rental Market Index. A year ago, the 2Q index was at a mildly positive 52.9. (Anything below 50 indicates pessimism about the market.)The new rental starts index hasn’t been this bad in the second quarter since 2003.Here’s the NAHB’s take:
“An oversupply of housing inventory in general, combined with systematic job losses, is starting to take a toll on the rental housing market,” said David Seiders, NAHB’s chief economist. Seiders noted that even in markets where demand for rental units is relatively strong, problems in the financial markets are making it difficult for multifamily developers to get the capital they need for new apartment construction.
Echoing recent O.C. reports, demand for luxury rental apartments plummeted across the country, falling to 33.8 on the index in the second quarter from 63.8 a year ago. Older Class B apartments in less desirable neighborhoods dropped to 48.7 from 67.7 last year.The oldest Class C apartments, which generally need maintenance and serve people well below the median income, came in at 50.0 on the index, down from 62.5 last year.For the full report, CLICK HERE.Related rental news…
well that settles it time to raise the rent right scott
but empty apartments dont spook liar loan-
and neither does the tighter lending requirements
which are only gonna get worse as the tsunami
of prime and alt a foreclosures hit the california
shores in oh about 6 months got your life preserver
there bimbo
That’s not good for rent-vs.-buy calculations.
I cant tell you how many apartments are empty in the complex I live in. I am curious to see how many more will move out this weekend.
I havent seen in move ins just empty places.
Rants what do you know about lending? You still work in the insurance business correct?
Rants is prognosticating about yet another subject he has no expertise in. He sold his home 3 years before the peak expecting prices to drop back to 1998 levels. Instead, he missed out on an easy 50-60% increase and forced his family to live in an apartment for the past 5 years.
Your record isn’t good rants. Even you acknowledge that 1998 prices aren’t going to happen, so now you hope for year 2000 prices to somewhat justify the decision to sell and live in an apartment.
I wouldn’t even bring this up, except you constantly brag about how you’ve been right all along. In case any of our newer bloggers fall for your self-aggrandizement, I want them to know the whole story so they don’t mistakenly follow any of your “expert” advice.
my neighbor just got his lease renewal notice. They’re gonna raise his rent $10 dollars. I had to laugh at the attempt of our management company. He’s moving to HB anyway.
My lease is up in a October. I’ll be negotiating to keep my rent the same. Maybe i can get it lowered. I know some here on the blog have gotten lower rates.
Good for you meltdown. It should go lower but atleast stay the same.
I live in Irvine and rent a nice IAC apartment, and my rent stayed the same. Got it at a bargain a year ago, too.
I also live in a nice IAC apartment and received a reduction upon renewal (vacancy rates are climbing, whether reported or not). All I need to do is look at the parking lot.