New Rental Apartments Readily Absorbed, Most Under 3 Bedrooms

The Census Bureau reported this weekrnthat there were approximately 31,600 privately financed,rnnon-subsidized rental apartment units completed in the fourth quarterrnof 2012, up slightly from the 30,300 units completed in the thirdrnquarter but more than double the number completed a year earlier -rn15,300. Surveyrnof Market Absorption 2012 Characteristics Report isrnone of arnseries of quarterly and annual reports the Bureau issues detailingrnthe construction, absorption and characteristics of rental housingrnunits. The seasonally adjusted data presented in the report coversrnthe fourth quarter of 2012. </p

The Bureau estimates that, on arnseasonally adjusted basis, about 65 percent of the new, unfurnishedrnunits built during the quarter were rented (absorbed) within threernmonths of completion, about the same rate as in the previous quarterrnbut slightly higher than the 55 percent reported a year earlier. Onrna non-adjusted basis the three month absorption rate varied by only arncouple of points for each of the reporting periods. </p

The median asking price for rents inrnbuildings with five units or more was $1,089, down from $1,178 inrnQuarter Three and $1,126 one year earlier. The Bureau does notrnconsider these variations to be significant.</p

Forty-three percent of the completedrnunits contained two bedrooms and 35 percent were one bedroom units. Efficiencies (studios) accounted for 14 percent and units with threernor more bedrooms 8 percent. </p

The largest number of rental units werernconstructed in the South (61 percent). The other regions trailed atrn24 percent in the West, 11 percent in the Midwest, and only fourrnpercent in the Northeast.</p

There were an additional 8,100rnapartment units completed during the quarter that were federallyrnsubsidized or received a tax credit. About 500 more did not fallrnwithin the scope of the Census Bureau survey. Data on furnishedrnunits were not published because they did not meet publicationrnstandards for confidence intervals. </p

The survey also included condominiumrnunits and cooperative apartments, about 1,800 of which were completedrnduring the quarter in buildings with five or more units. This wasrnabout the same number reported in the third quarter but well belowrnthe 3,400 units completed in the fourth quarter of 2011. </p

About 78 percent of the completed unitsrnwere sold within three months of completion, up 20 percent fromrnquarter three. The median asking price for a unit was $316,000.

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