The national vacancy rate for the affordable housing sector, which is comprised of Low Income Housing Tax Credit (LIHTC) markets, remained flat in the third quarter, finishing at 2.4 percent. Since Moody’s Analytics REIS began tracking this sector, the vacancy rate has remained within the range of 1.9 percent to 2.5 percent. It is expected to finish 2020 at 2.4 percent as well, which is the same projection as in previous forecasts.
The affordable housing sector saw an inventory growth of 0.5 percent, compared to a growth of 0.8 percent from a year ago. While the completions figure of 5,780 was lower than the recent quarterly average, it’s still within the range of what an average quarter can expect to see. While affordable sector construction was fortunate to be considered essential during COVID-19 shutdowns and never had a full construction shutdown, minor delays may have been inevitable.
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