Data from the U.S. Census Bureau shows that 2015 construction starts for multifamily rental buildings totaled to 372,000 units, 13% higher than in 2014.
According to the Survey of Market Absorption (SOMA), completions of privately financed, unsubsidized, unfurnished rental apartments in buildings with five or more units reached 259,500 in 2015, which is 23% more than in 2014.
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% were rented (or absorbed) within the following 3 months (first quarter of 2016). The absorption rate climbed 5 percentage points compared to the fourth quarter of 2014.
The for-sale multifamily market posted 26,000 starts in 2015, which is lower than the 27,000 started in 2014. However, completions and absorption rates of for-sale units increased in 2015.
In 2015, 12,100 condominium and cooperative were completed, compared to 7,100 in 2014. The absorption rate increased, going from 78% in the fourth quarter of 2014 to 85% in the fourth quarter of 2015.
(more on multifamily absorption at NAHB's Eye on Housing . . . )
