The picture was mixed across property types, with apartments enjoying strong demand as vacancy rates push yet lower, the office sector experiencing a slow recovery, and retail sector still barely out of the starting gate. The job market firmed a bit in recent months but still lacks vigor. Household formation lost steam, leading to less demand for apartments in the near term (or perhaps reflecting a lack of availability). Over the long term, however, the 4 million or so households that are currently doubled up with roommates or family – “shadow demand” – will sustain apartment demand once the job market improves. Commercial property prices rose in the third quarter, despite higher interest rates and the government shutdown. Check the latest Commercial Property Update for details.