WASHINGTON, March 7 /PRNewswire-USNewswire/ -- Not all residential real
estate is equal, according to the National Multi Housing Council's (NMHC)
latest Market Trends report. In stark contrast to the single-family
residential sector, which is suffering from its worst downturn since the
Great Depression and a 10-month backlog of supply, conditions in the
apartment sector remains strong.

"Apartment owners exercised great restraint during the housing boom,"
noted NMHC Chief Economist Mark Obrinsky. "As a result, they have escaped
the oversupply problems plaguing the single-family sector."

Last year, the number of renters in professionally managed apartments
increased by the largest amount since 2000. In fact, the increase was as
large as that for the previous five years combined. Prior to that, between
2004 and 2006, 1.2 million households joined the ranks of renters, more
than making up for the loss in renter households sustained from 2002 to
2004.

"While the so-called 'shadow' rental market (unsold houses and condos
that have left the for-sale market to enter the rental market) may attract
some apartment renters," noted Obrinsky, "thus far, the lowest
homeownership rate in almost seven years seems to have increased demand for
apartment residences, especially professionally managed apartments."

The number of renters nationwide is projected to increase by almost
four million households over the next 10 years, with half of those
households likely to rent apartments. To meet that demand, the nation needs
to produce at least 250,000 new apartment residences each year. Yet
apartment completions have averaged just two-thirds of that in recent
years. Last year, both starts and completions of all multifamily units
(both condos and rental apartments) fell to their lowest levels since 1996
and 1997, respectively.

"By all measures, new apartment supply clearly remains in check," said
Obrinsky. "Thanks to those solid fundamentals, rents continue to show
modest increases even as single-family house prices continue to fall."

Rents for professionally managed apartments tracked by M/PF YieldStar
rose by 3.5 percent in the fourth quarter of 2007, a pickup from the 2.9
percent increase of the previous two quarters. Apartment vacancy rates have
changed little over the last five quarters and are at exactly the same
level as a year ago.

"Apartments continue to be an investor favorite," said Obrinsky. "And
rightly so. 'Real' returns (that is, returns over and above the rate of
inflation) to privately held apartments have averaged almost 11 percent
over the last five years."

"The outlook for the apartment industry going forward is very strong,"
said Obrinsky. "The long-term demographics are quite favorable for rental
housing. The nation's 75 million echo boomers are already entering the
housing market, and most begin as renters. Strong immigration levels add
even more demand for rental housing."

Based in Washington, DC, NMHC is a national association representing
the interests of the larger and most prominent apartment firms in the U.S.
NMHC's members are the principal officers of firms engaged in all aspects
of the apartment industry, including owners, developers, managers and
financiers. Nearly one-third of Americans rent their housing, and more than
14 percent live in a rental apartment. For more information, contact NMHC
at 202/974-2300, e-mail the Council at info@nmhc.org, or visit NMHC's web
site at http://www.nmhc.org.