Data from the US Census Bureau shows that multifamily for-rent starts grew 13% to 372,000 units in 2015. Completions rose 23%, according to the the Survey of Market Absorption (SOMA), hitting 259,500 in 2015, writes the NAHB's Carmel Ford for Eye on Housing.
The good news? People were moving into those new apartments.
Likewise, apartment absorption rates increased in 2015, indicating solid demand growth. For the 65,100 apartment units completed in the fourth quarter of 2015, 59 percent were rented (or absorbed) within the following 3 months (first quarter of 2016). The absorption rate climbed 5 percentage points in comparison to the fourth quarter of 2014.
Starts and absorption also increased in the condo market.
In 2015, 12,100 condominium and cooperative were completed, compared to 7,100 in 2014. The absorption rate increased, going from 78 percent in the fourth quarter of 2014 to 85 percent in the fourth quarter of 2015.