Permits for 5+ buildings surged by nearly 18 percent in May, according to the National Association of Home Builders (NAHB). Multifamily permits, says NAHB, have averaged 258,000 units over the past three months—“pointing to continued strength in multifamily construction going forward.”
NAHB’s shelter index, which measures overall housing costs, increased for the 11th time in 12 months. The largest rent jump since late 2008—6 percent on an annualized basis‑occurred in May 2012.
Median sales price for existing condos and coops increased to $180,000 in May, marking the first time in nearly three years the median price level has been at or above that level, according to NAHB.
Banks’ net lending to commercial real estate and apartment borrowers was essentially unchanged in Q1 2012, according to Sam Chandan, chief economist of Chandan Economics. Commercial lending fell by $2.1 billion while apartment lending increased by $2.4 billion. And default rates on multifamily loans held by banks continue to fall in the first quarter, according to Chandan Economics.
Apartment equity REITs returned a 1.33 percent return in the quarter, and 10.95 percent year-to-date.