A mostly soft multifamily market.

Apartment markets around the country are suffering from weak employment trends and attractive home mortgage interest rates. We polled experts to see when the turnaround is expected and where the vacancies are highest. We also checked out two very weak markets (Austin and Denver) and one winning one (L.A.).

The nation's multifamily market, mired by a slow recovery and an exodus to homeownership, is not expected to improve until job growth resumes on a widespread scale.

More than any other factor, job growth drives the multifamily market. Major job losses from corporate cutbacks and delayed expansion plans have reduced apartment demand, increased vacancy rates and forced landlords to offer concessions in order to maintain occupancies. Concessions have ranged from a month or more of free rent to actual rent rate reductions, in many cases.

Conditions remain soft

Despite these reversals, sources interviewed agree the apartment industry's long-term outlook is bright due to an anticipated large influx of new renters and a favorable balance between supply and demand. For the short term, though, most describe a different scenario.

According to Washington, D.C.-based National Multi Housing Council's (NMHC's) April 2003 quarterly report, Survey of Apartment Market Conditions, conditions in the sector remain soft.

NMHC chief economist Mark Obrinsky commented in an April press release, "Right now, it's all about jobs. Demand for apartment residences remains below normal levels in most metro areas and is likely ...

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