Multifamily housing starts of buildings with five or more units rose by 42.9 percent over the month of April 2014 to a seasonally adjusted annual rate of 413,000 units, according to the National Association of Home Builders (NAHB). The three-month moving average of multifamily housing starts, now exceeds 301,000 units‑the average recorded between 2000 and 2007, according to NAHB.
Metropolitan area statistics compiled by Marcus & Millichap shows that apartment completions increased 15 percent in the top metros in the first quarter, compared to the first quarter 2013. Effective rents in top metros rose by 3.4 percent, and vacancies fell by 0.1 percent, during the first quarter compared to a year ago.
Meanwhile, apartment transactions dropped from $27.78 billion to $16.89 billion, according to data from CoStar/PPR. The number of properties sold fell from 3,501 to 2,745.
Banks increased their mortgage debt outstanding from $298.2 billion to 262.4 billion in the first quarter 2014 compared to the same quarter a year ago, according to Federal Reserves data compiled by REIS. While banks increased their balances, GSEs’ mortgage debt outstanding for the same quarter fell from 261.9 to 238.9 billion compared to a year ago.