MultiFamily Market Outlook - 11/17/2004 (Plain Text Version)

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In this issue:
How Multifamily Housing Pays for Itself
Multifamily Starts Rise This Fall
Real Rents Stagnant in September
Economy Headed For Stability
Multifamily Stock Index Breaks Another Record

Real Rents Stagnant in September

In September, the real rent index continued to hover in a narrow range between 108 to slightly below that level. During that month, the component of the Consumer Price Index (CPI) measuring residential rent increased at a (seasonally adjusted annual) rate of 1.7% — almost but not quite keeping pace with the overall CPI, which increased at a rate of 1.9 %.

As a result, the real rent index inched down one-tenth of point to 107.9. At that level, the index is still about as strong as it's been at any time during 2004, but well off the easily visible peak that occurred at the end of last year.

September's moderate rate of overall inflation was the result of a sharp increase in the costs of lodging away from home being nearly offset by other components of the CPI, which showed little change or actual declines. The CPI component for food, for example, was unchanged in September, while energy costs declined for the third straight month