After reaching their trough in the first quarter of 2010, multifamily property values rose 25% over the course of the past two years, Freddie Mac said Tuesday.
The government-sponsored enterprise made this assertion after reviewing statistics from the National Council of Real Estate Investment Fiduciaries index.
Interest in the entire multifamily segment is growing with construction starts on buildings with at least five apartments increasing 48% when comparing just the first five months of 2012 to the year earlier period, Freddie Mac added.
“Further increases in rental demand are likely in the coming year as newly formed households postpone homeownership decisions until the economy strengthens and they have accumulated sufficient savings,” said Frank Nothaft, vice president and chief economist for Freddie Mac. “Overall, apartment market trends may show further vacancy declines and rent gains, with property values improving as well.”
In the yearlong period ending in March, 1.5 million U.S. households moved into rentals, a 4% increase in one-year’s time.
“While nominal rents rose (2 to 4 percent) during the year ending March 2012, average rent on an inflation-adjusted basis remained below where it had been for much of the decade prior to the Great Recession,” Freddie Mac wrote in its latest report.
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[iframe http://tools.1parkplace.com/valueWizard/vluredirect.aspx?userid=47042 780 1100]
By the way…if you know of someone who would appreciate the level of service in real estate we provide, please call me or have them go to www.CountyProperties.net and I’ll be happy to follow up and take great care of them.
The government-sponsored enterprise made this assertion after reviewing statistics from the National Council of Real Estate Investment Fiduciaries index.
Interest in the entire multifamily segment is growing with construction starts on buildings with at least five apartments increasing 48% when comparing just the first five months of 2012 to the year earlier period, Freddie Mac added.
“Further increases in rental demand are likely in the coming year as newly formed households postpone homeownership decisions until the economy strengthens and they have accumulated sufficient savings,” said Frank Nothaft, vice president and chief economist for Freddie Mac. “Overall, apartment market trends may show further vacancy declines and rent gains, with property values improving as well.”
In the yearlong period ending in March, 1.5 million U.S. households moved into rentals, a 4% increase in one-year’s time.
“While nominal rents rose (2 to 4 percent) during the year ending March 2012, average rent on an inflation-adjusted basis remained below where it had been for much of the decade prior to the Great Recession,” Freddie Mac wrote in its latest report.
More questions we can help you, at County Properties, 25 years of brokerage experience, trust and a Member of the local Better Business Bureau! Want to know what your home is worth? Click here for a free market evaluation !
Commercial Multi Unit Properties We will setup a customized search for you by our professional REALTOR® Team. Sit back relax and shop at home! We will make changes to your Pro-Property Search any time you like, just let us know. Have fun!
Want to know what your property is worth?
[iframe http://tools.1parkplace.com/valueWizard/vluredirect.aspx?userid=47042 780 1100]
By the way…if you know of someone who would appreciate the level of service in real estate we provide, please call me or have them go to www.CountyProperties.net and I’ll be happy to follow up and take great care of them.