NAHB, citing new findings from the Census Bureau, reports that completions of nonsubsidized, unfurnished, rental apartments in buildings with 5 or more units increased 9 percent over the year ending in Q4 2016.
The absorption rate for these buildings (the share rented within three months after completion) dropped to 48 percent in Q4, down 7 percent from 2015 and the first time it was under 50 percent since 2009.
Over the same time frame, condo completions rose to 6,500 from 3,200, but the absorption rate fell to 47 percent from 81 percent in Q4 2015.
Production of new multifamily housing has been relatively strong for the past several years. ... It’s not entirely surprising that absorption has slowed. However, it is important to note that a slowdown in just one quarter may not be indicative of a trend.