Sales in the Washington, D.C. area are 15 percent ahead of this time last year. Local sources report that sales in the Chicago area for 1999 will probably set a record for the decade. In the Southwest, sales activity in Albuquerque and Oklahoma City are at a record-setting pace. In Phoenix and Las Vegas, two of the country's hottest markets, sales activity is up substantially above last year and should set new records by year-end. The decrease in permit activity is a response to the large pipeline of apartment development that already exists in many areas.
Demand remains very strong for new rentals throughout much of the country.
Reports of occupancy rates of 94 percent or higher are typical in most major rental markets. The Dallas-Fort Worth area is number one in multifamily production so far this year, with more than 12,600 units permitted. In the Mid-Atlantic region, very active residential revitalization efforts are underway in downtown Baltimore, Pittsburgh, and Richmond. In the Miami area, multifamily activity is up almost 80 percent after 2 years of relatively low production. Demand for new rentals in the Chicago area is very strong, particularly for high-rent units.