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Apartment First Glance Analysis

May 4, 2011

National vacancies fell by 40 basis points, from 6.6 to 6.2 percent, as the sector posted positive net absorption of over 44,000 units. With a shortage in new supply for 2011, we expect vacancies to continue to plummet throughout the year. The expected inventory growth figure of 0.5% in 2011 is about one-third of the long-term average of 1.46%, and any boost from new construction will not materialize until late 2012. Unless shocks to the global economy dampens US economic recovery, expect vacancies to continue declining, and rents rising through 2011.