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Pulaski County apartment market thrives.

Article Excerpt
SUPER-LOW INTEREST RATES have drawn hordes ** home buyers to make the ** from renting to owning.

But that migration hasn't adversely affected the Pulaski County apartment market, as evidenced by the parade of new construction.

Eight apartment projects are in various stages of completion. The developments represent a combined 940 units and a total estimated investment of $50 million.

"I don't think we're in any danger-of being overbuilt," said Richard Cheek, vice president of The Multifamily Group in Little Rock.

A backdrop to this activity is an occupancy rate for Pulaski County apartments that rebounded to 94.1 percent in 2002. The upward move follows a dip from 94.4 percent in 2000 to 93.7 percent in 2001.

The high-water mark for apartment occupancy in the market during the past 18 years is 95.7 percent in 1993.

Occupancy has remained firm m the market despite five years of relatively low interest rates.

"The reason (the occupancy rate) hasn't gone higher is because of the low interest rates attracting first-time buyers," Cheek said. "It seems we've hit a saturation point in terms of how home-buying is affecting the apartment market."

Healthy occupancy figures are reported across the spectrum of property types: old, new, tax-credit, conventional, luxury; etc.

"The thing that is so encouraging is how solid our market is," said Jerry Webster, president of Little Rock's Webster...