June 28, 2017
Shaking off a sluggish first quarter, the apartment market showed marked improvement in Q2 2017, according to new research from Reis. All but two of 79 metros covered by Reis experienced effective rental increases or remained flat.
Reis senior economist Barbara Byrne Denham says, “the growth in effective rents suggests that landlords’ offers of free rent were less aggressive as the apartment market continued to benefit from stronger housing prices, keeping more potential home buyers in rentals.”
New construction of 36,477 units was the lowest quarterly addition in more than two years, which allowed landlords to curb concessions.
Other Reis report highlights:
- Vacancy increased in 27 metros, but the increase exceeded 0.2% in only eight metros. The national vacancy rate increased from 4.3% to 4.4%
- The apartment market saw a modest rebound in the second quarter, as effective rents grew 1.1% in the quarter and 3.0% over the year. Only two metros saw a rent decline in the quarter (Columbia, SC and Little Rock)
- Total inventory is expected to increase significantly in 2017
For comments, questions or concerns, please contact Dennis Kaiser