Vacancy Rates, Rents Signal a Landlord’s Market via American Apartment Owners Association

According to research from the National Association of Realtors®, multifamily housing is becoming a landlord’s market commanding bigger rent increases.

Lawrence Yun, NAR chief economist, points to sustained job creation as a major factor in the apartment market turnaround. “Vacancy rates are steadily falling. Leasing is on the rise and rents are showing signs of strengthening, especially in the apartment market where rents are rising the fastest.”

NAR forecasts vacancy rates over the next year to decline another 0.2 percentage point in the multifamily rental market.

“Household formation appears to be rising from pent-up demand,” Yun said. “The tight apartment market should encourage more apartment construction. Otherwise, rent increases could further accelerate in the near-to-intermediate term.”

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