Greg Willett, vice president of research with MPF/YieldStar inCarrollton, TX says that, while some of the construction waslaunched before the housing crisis hit, "we had eight propertiesstarting construction just in the past quarter." As a result,"occupancy is down three points for the market overall in the pastyear," he notes, adding that the area should continue to expectmore of the same well into 2009.

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MPF/YieldStar's raw data showed a 90% occupancy during Q2 2008,which Willett says is down two basis points from the first quarter,and down three basis points from the same time last year.RealFacts' Market Overview for Q2 2008 shows overall occupancy at88.9%, a decrease of 3.4% from the year before. The report posts aninventory of 182,732 units, of all classes, among propertiesbetween 100 units and 1,222 units.

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Perhaps unsurprisingly, the increase in units has meant a netrent loss. Willett tells GlobeSt.com that the first-quarter rentchange was a negative 1.4%. The RealFacts report actually shows avery slight increase from the year before of .5%.

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Despite the turmoil in the multifamily market, there hasn't beenmuch uptick in concessions, however. "It doesn't mean they'rediscounting the product, but they're probably taking the concessionfrom the quoted rates, as opposed to pushing up concessions,"Willett explains.

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He points out that 50% of the product on the market hasconcessions these days, but the figure isn't out of line. "At thebottom point, in the middle of 2006, it got to be that 25% of theproduct had concessions," Willett says. "But in 2004 and 2005, whenthe market was hot, concessions were at 50% to 50%."

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