Many of the markets that registered the strongest demand last year now have a relatively limited number of units available.
In contrast to the soaring absorption recorded in many cities last year, the near term will likely bring a slowdown in demand. This trend in part reflects the nation's business cycle. The pace of new job formation cooled in about two-thirds of the country's major metropolitan areas during the last part of 2000, and other measures of economic activity suggest that the nation's economy's slowing-for a soft landing, it is hoped. Slower economic growth points to moderating total housing demand. Product availability levels also should cap apartment absorption potential in 2001. Many of the markets that registered the strongest demand last year now have relatively limited supplies available for lease-the result of robust absorption of desirable existing apartments or fewer new units coming online.
Thanks to Urban Land Institute
FULL STORY: Hot Markets in 2001
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