Apartment, condo demand thwarts rising costs and supply issues

“The modest decline in the very strong MOI number is not likely to result in any significant change in Census rental occupancy rates, which are still rising and will likely remain high given the strong 69 index number from our survey,” Dietz added.

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Two of the three components increased in Q4: The component measuring low-rent units declined seven points to 48, the component measuring market-rate rental units increased one point to 61, and the component measuring for-sale units saw a six-point gain to 53.

“Multifamily developers remain largely optimistic about this segment of the market,” said Sean Kelly, chairman of NAHB’s Multifamily Council. “Demand in many parts of the country has been strong enough to compensate for the rising costs of land, labor and materials.”