A LITTLE LESS ROOM AT THE INN
After declining for two straight years, hotel occupancy levels are expected to increase from 59.3% in 2002 to 60.0% in 2003. The trend is expected to continue in 2004, with a projected increase of 1.4% to 61.4%.
WHERE RENTERS REIGN
Demand for apartments is expected to increase as the number of people ages 20 to 29 grows by nearly 600,000 annually over the next four years. That means more renters will be competing for apartments in New York, where nearly 70% of the metro area's 8 million residents are renters.
| Metro Area | Total Population | Total Occupied Housing Units | Percentage of Renters |
|---|---|---|---|
| 1. New York | 8,008,278 | 3,021,588 | 69.8% |
| 2. Los Angeles | 3,694,820 | 1,275,412 | 61.4% |
| 3. Dallas | 1,188,580 | 451,833 | 56.8% |
| 4. Chicago | 2,896,016 | 1,275,412 | 56.2% |
| 5. Houston | 1,953,631 | 717,945 | 54.2% |
| 6. San Diego | 1,223,400 | 450,691 | 50.5% |
| 7. Detroit | 951,270 | 336,428 | 45.1% |
| 8. San Antonio | 1,144,646 | 405,474 | 41.9% |
| 9. Philadelphia | 1,517,550 | 590,071 | 40.7% |
| 10. Phoenix | 1,321,045 | 465,834 | 39.3% |
| Source: NMHC/U.S. Census Bureau, Census 2000 | |||
CMBS ISSUANCE DIPS
Total issuance in the domestic commercial mortgage-backed securities (CMBS) market dropped 11% in 2002 as a weak economy slowed lending activity. Still, the $66.4 billion in new issuance in the U.S. was the second highest total in four years.
| Year | U.S. | Global Total |
|---|---|---|
| 2002 | $66.4 | $95 |
| 2001 | $74.4 | $97.1 |
| 2000 | $48.9 | $61 |
| 1999 | $58.5 | $67.9 |
| 1998 | $77.7 | $78.3 |
| 1997 | $40.5 | $44 |
| 1996 | $28.8 | $29.7 |
| 1995 | $17.8 | $18.9 |
| Source: Commercial Mortgage Alert | ||
Insight from: AMERICAN demographics
ONLINE SPENDING ON THE RISE
Retailers take note: More customers are turning to the Internet. Online sales jumped from $8.2 billion in the third quarter of 2001 to $11.1 billion in the same quarter of 2002, a 34% increase.
| Year | E-commerce sales in millions of dollars* |
|---|---|
| 4Q 1999 | $5,481 |
| 1Q 2000 | 5,814 |
| 2Q 2000 | 6,346 |
| 3Q 2000 | 7,266 |
| 4Q 2000 | 9,459 |
| 1Q 2001 | 8,256 |
| 2Q 2001 | 8,246 |
| 3Q 2001 | 8,236 |
| 4Q 2001 | 11,178 |
| 1Q 2002 | 9,880 |
| 2Q 2002 | 10,265 |
| 3Q 2002 | 11,061 |
| *E-commerce sales are sales of goods and services where an order is placed by the buyer and terms of sale are negotiated over the Internet, extranet, Electronic Data Interchange network, electronic mail or other online system. Payment may or may not be made online. | |
| Source: U.S. Department of Commerce | |