Absorption rates for new rental and for-sale multifamily homes in America were roughly unchanged at the start of 2014, according to National Association of Home Builders (NAHB) analysis of data Monday. Completions of privately financed, unsubsidized, unfurnished rental apartments in buildings with five or more units were up during 2013. A total of 132,600 such apartments were completed for these four quarters, compared to 104,500 a year earlier.
Non-seasonally adjusted three-month absorption rates (units rented after construction of the property is complete) for 4Q 2013 completions (rented during the first quarter of 2014) were effectively unchanged at 60 per cent, compared to 58 per cent a year earlier. Absorption rates for rental apartments rose coming out of the recession but established a more stable range since 2011, said the NAHB.
US Apartment Absorptions
Condominium and co-op completions remain at historically low levels, with 2,100 for-sale multifamily homes completed during 4Q 2013, said NAHB Monday. The 3-month absorption rate for for-sale multifamily dipped for condos completed at the end of 2013 and sold during 1Q 2014, falling to 71 per cent.