Renters Comeback
Apartments Stage a Comeback as Renters Return in Surprising Numbers
Source: nreionline.com
"After two years of rising vacancies and slumping rents, apartment owners have reason to be cheerier these days.
According to the latest survey of 169 markets across the U.S. by researcher Reis, the national apartment vacancy rate peaked at a record 8% in the fourth quarter of 2009 and remained unchanged in the first quarter of 2010. Asking rents increased by a scant 0.1% in the first quarter, but that was the first gain since the third quarter of 2008.
Some 20,000 apartment units were absorbed in the first quarter of 2010, which is the strongest first-quarter showing in the past 10 years, according to Victor Calanog, director of research at Reis. “The multifamily market appears to be on the cusp of recovery. If so, pricing and transaction activity will rise and the window of opportunity for landing good deals may close soon,” says Calanog."
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Encouraging Article! We are seeing a drop in our vacancy rates. The only increase in rents we've had, though, has been due to either renovating our apartments or regrading them.
In a market that I serve in Nevada, apartment vacancy rates have declined. Due in part to persons moving to rentals out of foreclosures, moving to cheaper residences due to loss of jobs and taking advantage of rental bargins. On the flip side, some owners began dropping rents in the early Spring to hopefully fill vacancies by the fall. The hurdle of sabalized rents and profitability to owners has not yet been overcome. It's going to be a few years before owners can achieve the rent levels that once were.
- Lori Burger | Flag this comment for review