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What does the housing recovery mean for the booming rental market?
 
 
The recent housing data reports show that all three major composites ended the second quarter of 2012 with positive annual growth. As the housing market continues to recover, there are those who may wonder what effect that recovery will have on the recently booming apartment sector, which benefited from the housing crash.
 
In most U.S. markets, rent prices have continued to rise and vacancies are down and still falling. The Marcus & Millichap report for the second quarter of 2012 showed that, occupancy levels are near 95 percent on average nationwide, which has encouraged further development in the multifamily sector. According to the U.S. Commerce Department, multifamily housing starts were up 30 percent in July from a year ago, and multifamily permits were up over 47 percent. With the current low interest rate environment and the availability of capital, building apartments is easier and REITs and other large developers are dominating the market. While the increase in supply is a potential risk to the multifamily sector, with the recent high rent prices attracting investors to sour to the sector, there are those who believe that there will be room for both markets to co-exist.
 
The recent housing ... more

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