May 17, 2017 Comments Off on Is Softening of Apartment Market Sign of Future? Views: 1765 National News, Top National Stories

Is Softening of Apartment Market Sign of Future?

National vacancies rose by 10 basis points in Q1 2017, to 4.3%, according to the latest research from Reis. Yet occupancies have remained tight, despite the flat year-over-year vacancy numbers and in consideration of the onslaught of deliveries.

Asking rents and effective rent growth are both challenging landlords, as they are discovering stable occupancies are coming at a price.

Reis reports that asking rents grew by just 0.3% in the first quarter, while effective rents rose by only 0.2%. That’s the weakest performance since Q1 2010 as the recovery commenced.

Top 5 Markets by Effective Revenue Per Unit

Percent Change from Q1 2016 to Q1 2017

  1. Colorado Springs: 7.2%
  2. Seattle: 7.0%
  3. Tacoma: 7.0%
  4. Sacramento: 6.6%
  5. Ventura County: 6.5%

Bottom 5 Markets by Effective Revenue Per Unit

Percent Change from Q1 2016 to Q1 2017

  1. San Francisco: -1.5%
  2. New York: -1.1%
  3. Oklahoma City: -0.6%
  4. Tulsa: 0.0%
  5. Houston: 0.6%

Read more at Reis

Connect With Reis’ Victor Calanog


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