New Home Construction Plunges in February -Realtor.org
Total residential building permits are now the lowest they have been in more than three decades which points to limited new home sales in 2011 regardless of market conditions. At an annualized new home sale rate of 479,000 in February, the U.S. is building at a rate that will rise in the coming years as inventories of surplus property (existing homes) are absorbed.
In Dallas-Ft Worth, for example, job growth exceeded 60,000 in the past 12 months while residential building permits tallied just slightly greater than the 20,000 mark boding for increasing rents in multi-family and tightening market conditions. While not all markets are at near the solid economic basis as the DFW area, most are improving. Marcus and Millichap is forecasting a 3.4 percent increase in effective rents in this market area.
Last year on a state-by-state basis (January 2010 versus January 2009) only Washington, D.C. had job growth. Comparing February 2011 to February 2010 find year-over-year job losses in just five states.
All of this points to increasing rental rates in most markets, declining vacancies and rising multi-family property values.
For building permits across the country, click the link below for data from the Real Estate Center.
Regarding local market multi-family conditions, the major national real estate brokerage companies publishing reports for most large markets in the U.S. (and internationally).
Click the links below to view rental conditions in multi-family markets (and also office conditions, retail and industrial). While most of these companies require you to set up an account, the reports are free and I have not had any of these firms abuse my email address. There is an incredible amount of information here from local market experts.
The bottom line is that rents are going up which equates eventually to rising home prices. Within three years we also will likely see a doubling of new home and apartment construction.