Houston leads in construction permits over first seven months of 2003: current rental apartment market conditions and the health of the local economy do not support a marked rise in apartment construction in the Houston metropolitan area.The Houston Houston, city (1990 pop. 1,630,553), seat of Harris co., SE Tex., a deepwater port on the Houston Ship Channel; inc. 1837. Economy The fourth largest city in the nation and the largest in the entire South and Southwest, Houston is a port of entry; PMSA PMSA abbr. Primary Metropolitan Statistical Area led all metropolitan area markets on apartment permits over the first seven months of this year with the approval of 9,663 units. The recruitment permit activity in Houston more than doubled compared to the same period last year when 4,751 units were approved. Current rental apartment market conditions and the health of the local economy do not support a marked rise in apartment construction in the metro area This article is about the music production team. For the article about population centers, see metropolitan area. Metro Area are a Brooklyn-based dance music production team composed of Morgan Geist and Darshan Jesrani. . Employment declined by 9,100 jobs during the year period ending in July in the metro area and is down 40,100 jobs from its peak in November 2001. The July unemployment rate in Houston, 7.2 percent, was well above the 6.2 percent national average. Even more important is the rise in the rental apartment vacancy VACANCY. A place which is empty. The term is principally applied to cases where an office is not filled. 2. By the constitution of the United States, the president has the power to fill up vacancies that may happen during the recess of the senate. rate, which reached double digits Double Digits was a pricing game on the American television game show, The Price Is Right. Played from April 20, 1973 through May 18, 1973's show, it was played for a car and used small prizes. . Houston has a long history of wide swings in apartment construction. Another moderation in the rate can be expected later this year or some time next year. Houston is not alone in experiencing higher apartment construction in conjunction with a weak labor market labor market A place where labor is exchanged for wages; an LM is defined by geography, education and technical expertise, occupation, licensure or certification requirements, and job experience . Ten of the 75 most active markets this year had higher apartment permits along with fewer jobs. A total of 31 of the most active markets had fewer jobs in July compared to one year ago, but 21 saw their apartment construction activity drop. Employers in half of the top 10 markets had fewer employees in July than they did one year earlier. New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , the second most active apartment construction market, continues to struggle with its effort to recover from the economic disruptions caused by September 11. Actually, economic activity began to soften in January 2001 following its peak employment level one month earlier. Total employment in July was down by 50,100 jobs compared to the same month one year ago. This is an improvement over the net loss of more than 135,000 jobs that the area experienced in the year period ending December 2001. New York's unemployment rate at 7.5 percent in July is down from the recent peak of 8.4 percent in February. A majority of analysts expect a weaker economic recovery for the New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. metro area compared to that of the nation. The New York City Office of Management and Budget The Office of Management and Budget (OMB), formerly the Bureau of the Budget, is an agency of the federal government that evaluates, formulates, and coordinates management procedures and program objectives within and among departments and agencies of the Executive Branch. and the New York City Comptroller's Office forecast that the city may not regain late 2000 employment levels until 2005 or 2006. The apartment market has bottomed out and vacancies are less than 3 percent. A 3 percent vacancy rate in the New York area is relatively high by historical standards. Rent concessions are disappearing. The area's co-op/condo market has firmed. New apartment supply is growing more slowly with permits declining during the first seven months of this year to 6,068 units from 7,684 units one year ago. Los Angeles-Long Beach, the third most active metro area, returned to the top 10 apartment construction markets late last year after a decade long absence. Permits were issued for 5,949 apartment units through July 2003. This represents a 75 percent increase from the 3,393 units approved during the first seven months of 2002. Economic activity is recovering in the metro area. Employment was down 10,800 jobs in July compared to one year ago. Early last year, employment losses totaled more than 80,000 jobs. The unemployment rate at 7.5 percent is still high, but the rate is dropping. A peaking of the rental apartment vacancy rate in the Los Angeles-Long Beach metro area of approximately 4.5 percent occurred last year and began to drop during first quarter 2003. The 4.5 percent rate did show a relatively tight market and a base for a strong recovery. Another positive factor for the area's rental apartment market was the delay of a meaningful recovery until late in the 1990s. Atlanta placed fourth in apartment permits during the first seven months of 2003. It led all metropolitan areas for the three previous years. Permits were issued for 5,418 apartment units in the first half of 2003, down only 4,515 units from the same period one year earlier. A contraction contraction, in physics contraction, in physics: see expansion. contraction, in grammar contraction, in writing: see abbreviation. contraction - reduction in its apartment construction activity was inevitable. Strong permit activity occurred in spite of in opposition to all efforts of; in defiance or contempt of; notwithstanding. See also: Spite a weakened weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. local economy and
rising rental apartment vacancy rates.
The more than a decade-long strong economy in the Atlanta metro ended in late 2001. By January 2003, employment losses totaled 86,700 jobs. Its apartment market weakened and vacancy rates were above 10 percent. An economic recovery is now underway and by July employment was up 68,300 jobs compared to January. Atlanta's unemployment rate (5.3 percent) is well below the national average. Atlanta's low business costs and favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. cost-of-living-to-income ratio makes it competitive. Atlanta should continue to drive an above-average recovery as the national economy strengthens. A recovery in rental apartment construction will lag the economy turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. . Apartment occupancy rates Noun 1. occupancy rate - the percentage of all rental units (as in hotels) are occupied or rented at a given time pct, per centum, percent, percentage - a proportion in relation to a whole (which is usually the amount per hundred) must rise markedly to attract increased levels of apartment investment. Chicago had the fifth most active apartment construction during the first seven months of 2003 with permits issued for 5,169 units, a 25 percent drop during the same period in 2001. The vacancy rate is rising in Chicago's historically tight apartment market as a result of a weakened economy. Also extensive condominium condominium In modern property law, individual ownership of one dwelling unit within a multidwelling building. Unit owners have undivided ownership interest in the land and those portions of the building shared in common. product on the market and low mortgage rates compete with rental apartments. Apartment permit data tot the top 10 apartment construction markets during the first half of this year are given above. More detailed data for these markets and data for the remainder of the top 70 metro areas am available at the NAA NAA Nomina Anatomica Avium. Web site, www.naahq.org, under "Economic Data."
Apartment Permit Activity--First Seven Months of 2003
Rank Number of Units Change 02-03
2003 2002 Metro Area 2003 2002 Units %
1 1 Houston PMSA 9663 4751 4912 103.4
2 8 New York PMSA 6068 7684 -1616 -21.0
3 5 Los-Angeles Long Beach 5949 3393 2556 75.3
PMSA
4 11 Atlanta MSA 5418 9933 -4515 -45.5
5 15 Chicago PMSA 5169 6845 -1676 -24.5
6 2 Tampa/St. Petersburg/ 5018 3043 1975 64.9
Clearwater MSA
7 4 Washington, DC-ND-VA-WV 4909 4770 139 2.9
PMSA
8 19 Las Vegas NV-AZ MSA 4893 4166 727 17.5
9 13 Dallas PMSA 4772 3580 1192 33.3
10 12 San Diego MSA 4459 2207 2252 102.0
Robert J. Sheehan, President of Regia J. Sheehan Management and Economic Consultants in McLean, Va., serves as NAA's Consulting Economist. He can be reached at 703/893-9185. |
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