Multifamily Projects Still Look Attractive

The rental market is a squishy thing to try and quantify, no one knows how many single-family homes and duplexes are leased versus apartments units.

Economist Jeff Collins, a partner with Streetsmart Data Services Inc. of Fayetteville, said the 2000 Census indicated 32 percent of households in Northwest Arkansas rent. But that number is likely 35 percent or 36 percent now, he said.

According to the Arvest Bank Group-commissioned Skyline Report compiled by University of Arkansas researchers, multifamily vacancy rates as of June 30 were almost 3 percent higher than a year earlier.

Streetsmart’s data is almost identical and the multifamily market is soft right now with more units on the way, Collins said.

Shaun Sheller is the director of metro operations for Triton Homes USA, the Iowa-based group building Village on Shiloh in Fayetteville.

The project is technically a multifamily project, but the 198 units will be condos that sell starting at $116,900 and range in size from 1,180 to 1,226 SF.

Sheller said 28 of the 50 completed units are sold or spoken for and he has no trepidation about the rest of the project, which is due to be complete by early 2010.

Collins, who personally owns some multifamily housing, said the market will stabilize, but it may take longer in Fayetteville.