The other housing supply risk relates to for-sale housing production. We continue to believe that affordable for-sale housing is a significant threat to apartment rent growth. Our for-sale supply expectations remain muted in our coastal markets, largely due to high median home prices and restrictive lending practices, which should be beneficial to Essex. Seattle single-family deliveries are estimated to approach 0.9%, or 6,300 units, in 2014. However, both Northern and Southern California have very little for-sale supply, averaging less than 0.2% of stock in 2012, growing to 0.4% in 2014. As a result, even with the growing apartment supply, we expect very tight housing conditions in each of our targeted markets through 2014.Subsequent to quarter end, we completed the buyout of our partner's interest in Skyline apartments located near Irvine in Orange County. I have commented previously that institutional co-investments provide an important alternative source of capital as compared to financing on Essex's balance sheet. In this case, we estimate that we issued 320,000 fewer common shares by acquiring Skyline initially with a partner and then the subsequent partner buyout as compared to the pro forma acquisition of Skyline on our balance sheet back in March of 2010. Obviously, the stock price performance was a major factor in that result.
Essex Property Trust's CEO Discusses Q1 2012 Results - Earnings Call Transcript
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