Apartment Trends Bode Well For 2011

What will the future hold for the apartment industry?
According to Green Street Advisers the outlook is pretty good.
Senior Analyst Andy McCulloch thinks the apartment market staged an impressive recovery in 2010, in spite of the weak U.S. employment picture.

What will 2011 bring????

*This is what Andy thinks.The U.S. labor market is expected to improve in 2011, which McCulloch says should drive the formation of new households.
*The positive trends in regards to demand that began in 2010 should continue in 2011.
*Homeownership rate is expected to continue to decline, meaning apartments should capture the lion's share of those new household formations.

"When you combine positive demand trends with the lowest level of new supply entering the market in two decades, that sets the stage for a good environment for apartment operating fundamentals," McCulloch says.

McCulloch says Green Street is forecasting growth in every major U.S. market, with growth ranging from 3 percent to almost 10 percent.

In particular, McCulloch says Green Street expects the North East and San Francisco Bay areas to be among the strongest markets for apartment operators. Washington, D.C. and its surrounding areas were top performers in 2009 and 2010, and while McCulloch expects them to stabilize, they will still rank in the middle of the pack. Southern California, where growth is expected, should lag other markets.

Check out more of this report at the link below.
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Word on the Beach December 2010: Apartment Trends Bode Well For 2011