With demand for apartment rentals far exceeding supply in many markets, it’s no surprise that multifamily housing was highlighted in NAR Research’s commercial report (released today) as the industry’s top performing sector.
By how much? Consider this: 29 markets, including several in the Northeast and in California, have multifamily housing vacancy rates under 4 percent.
According to Lawrence Yun, NAR chief economist, job growth and increasing household formation among young adults is supporting continued, robust demand for apartments. However, vacancies are expected to slightly rise over the next year as a higher-than-anticipated climb in multifamily completions is coming onto the market to meet that demand.
What about vacancy rates in the other commercial sectors? Below are the top 10 markets with the lowest vacancy rates in office, industrial, retail and apartments: