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Multifamily

Condo Absorption Increases While Apartment Absorption Idles

September 25, 2017

Condo absorption increased in the first part of this year (Photo: PIRO4D via Pixabay)

The recently released Survey of Market Absorption (SOMA) revealed that apartment absorption in the first quarter of 2017 was at 55 percent, the same as one year earlier. Condominium absorption, however increased from 65 percent to 71 percent in the same period.

NAHB’s Eye on Housing blog reports that the survey, a collaboration between the U.S. Census Bureau and the Department of Housing and Urban Development (HUD), also found that completions of unfurnished, unsubsidized, privately financed apartments in buildings with five units or more totaled 61,000 up 10 percent from 55,100 last year. Condominium completions stood at 3,700, up from the 3,000 a year prior.

Overall multifamily rentals remain strong, but absorption rates are leveling off and completions are starting to come down from their 2015 peak.

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