In its latest report, Axiometrics Inc., a provider of data and advisory services on the apartment market, indicates that over the last three months of 2011, national effective rental rates declined by 1.05%. This compares to a decline of just 0.59% over the same period of 2010.
However, because effective rents had grown so much during the previous eight months of 2011, and because units at the upper end of the market are nearing capacity, pricing power for apartment owners is strong, thus rents should continue on their upward trajectory in 2012. Axiometrics projects effective rent growth in 2012 to reach 5.50%.
“The apartment market’s strength is being driven by demand from modest job growth, strong renter household formation, and low supply,” says Ron Johnsey, president of Axiometrics Inc. “These factors will make 2012 a strong year, better than both 2010 and 2011, at least from the owner and landlord perspective. Residents in most markets will begin to move more to control their housing costs, such that people in Class A properties will begin to migrate to Class B properties to keep their monthly rent constant.”
Read more...Axiometrics: 2012 Looks Strong for Apartment Market - Multifamily News Headlines – Breaking News, Stories, Top Headlines :: MultifamilyBiz.com
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