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Apartment Market Heats Up, Rents Increase Again in July
Landlords and property managers across the country can revel in the buoyant facts about the apartment market: rents are high, vacancies are low and new units are cropping up every day.
Even with the slowly-growing real estate market pulling a few renters toward homeownership, the rental market is growing. According to a recent report by Axiometrics, rents increased by 0.54 percent in July, bringing the national average rent increase for 2012 up to 4.42 percent.
When the new units hit the market, Axiometrics expects rental rates to be slightly negatively impacted, but is still predicting overall growth of 4.1 percent.
Furthermore, property managers are having no trouble filling vacancies. Apartment occupancy levels are sitting at approximately 95 percent, according to a report by Marcus & Millichap.
Axiometrics expects about 56,000 new units to become available for rent by the end of 2012, which has multiple effects. On the one hand, rental rates will decrease slightly. On the other hand, new units need property managers, and property management firms all over the country are racing to increase staff to provide for landlords, which leads to an increase in the property management business.
Category: Rental Market News