Although absorption and occupancy rates increased since the second quarter, the market will still face increasing pressure through year’s end, according to the latest Multifamily Figures report.
Multifamily fundamentals such as net absorption and vacancy rates improved in the third quarter of 2020, according to the Q3 Multifamily Figures report prepared by CBRE. That good news is tempered, however, by the report’s conclusion market fundamentals will face increasing pressure through year’s end. That downbeat assessment stems from ongoing widespread joblessness as well as demand-dampening uncertainty resulting from COVID-19.
Third-quarter absorption totaled 90,300 units, which though down by 27.6 percent from a year ago was up by 300 percent over the preceding quarter. The overall third-quarter vacancy rate inched downwards by 16 basis points (bps) to 4.4 percent compared with the second quarter. And while average monthly rent fell by 1.6 percent to $1,694, the report noted the third quarter multifamily market held up better than anticipated, given that the renewal of enhanced unemployment benefits many counted upon never materialized.
Read the full Multifamily Housing News report HERE.
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