For the first nine months of 2000, private investors accounted for 68% of Orlando's $209 million in apartment sales. This is a substantial increase over 1999 when they inched out institutional investors by taking 51% of the $370 million in total sales. These figures appear in a new report by CB Richard Ellis to be published this month, which also indicates that for the first three quarters of last year, 4,235 units were sold for $209 million or $49,350 per unit. For the same period the year before, 7,559 units changed hands for $304 million or $40,216 per unit, and in 1999 the average per unit price amounted to $39,025 for the sale of 9,481 dwellings for $370 million. "Overall investment activity is down, but the numbers show it's still a healthy market," says Robert W. Miller, first VP with CB Richard Ellis.

The Central Florida multifamily market remains strong, with 93% of the units occupied. Of the 12,590 units that came to market last year, 9,387 were absorbed. In South Florida, Miami-Dade led the way in condo sales, accounting for 80.1% in the first nine months compared to Palm Beach County with 10.3% of the market and Broward County with 9.6%.

For the full story, click on:Apartment Sales Trail 1999 Volume but Average Unit Prices and Per Deal Numbers Are Up

In the Southwest, new construction can't keep up with the demand for multifamily housing, which is helping to keep rents high. In Austin, construction is up 11.3% over 1999, but only 7,746 permits were executed between November 1999 and October 2000.

"There is a lot under construction and a lot to be completed, but the delivery's not been that much," says Greg Willett, editorial director of MPF Research, Inc. Austin rents rose 8%, in Dallas they increased a little over 3%, and went up slightly shy of 3% in Houston. In the two latter cities, fears of overbuilding led to dramatic declines in the number of permits issued; a drop of 56% in Dallas compared to the previous year, and a dip of 35% in Houston. Those cutbacks will drive up rents this year, Willet predicts. The occupancy rate in the South is about 95.9% at the moment with Dallas-Ft. Worth posting an overall 95.2%, its highest since 1979. The Houston market slipped a bit from 96.5% to 94% because of too-aggressive building in 1999.

For the full story, click on:Law of Supply, Demand Keeps Rents High in Southwestern US Multifamily Market

Overdevelopment of multifamily housing, coupled with a slowdown in high-tech employment in late 1998 and early 1999, saw a decline in Portland's multifamily housing market. It now seems well on the road to recovery, however. "Although rental rates have not gone up, concessions have been eliminated and indications are that increases in rental rates can be expected in 2001," according to a report from Grubb & Ellis. Two reasons that apartment rentals and sales are expected to grow over the next several years are that the city has taken pains to develop a Downtown where people want to live, work and recreate, and a growing number high-tech firms will continue hiring people who want to live in urban areas. The suburban market should get a boost, too, from new office and industrial developments announced by Intel and Merix Corp. Six months ago, rents were being discounted by 2.3% on average; now that figure is down to 1.8%.

For the full story, click on:Apartment Investment Market Still in Recovery Mode

A fast-growing population and a drop in housing starts are expected to keep rents high in Los Angeles. California officials had forecast that permits for 156,000 units would be pulled in 2000, a figure that has been revised down to 147,600 units. The slowdown, builders say, is due to the high cost of land and bureaucratic red tape. The number of permits pulled during November was down 1% from the same month in 1999, although it was up 7% from the previous month due to good weather and a decline in mortgage rates. An estimated 250,000 new homes are needed by the state to keep up with its burgeoning population but with no construction boom expected, rents and home prices are likely to remain high.

For the full story, click on:Drop in Housing Starts in California Will Keep Home Prices and Apartment Rents High

To help alleviate New York City's tight housing market, the city is selling some of its inventory of abandoned housing and vacant lots for development by such groups as the Bluestone Organization, Harlem Congregations for Community Improvement and Columbia University in a joint venture with Artemis Construction. In all, they will build 1,643 units ranging from lower- to higher-income apartments, 990 of which will be sold. Residents will be chosen by lottery.

To help in the fight against homelessness, the city will receive a grant of almost $85 million from the US Government to provide both temporary and permanent housing. About the only relief in sight for middle-income tenants, however, is a slowdown in the economy, which could moderate the upward pressure on co-op and condo prices.

For the full story, click on:There's Little Housing for the Average Renter, But Hope in on the Horizon

Alex Finkelstein, Connie Gore, Brian K. Miller, David W. Myers and Amy Vaughn contributed to this story.

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MULTIFAMILY OUTLOOK: Maintaining Equilibrium Remains a Challenge

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