Forecasts Continued Growth Across Most Apartment Market Areas in 2013 via Axiometrics

Axiometrics Inc., the leading provider of apartment data and market research, reported today that the national apartment market averaged a healthy 3.85% effective rent growth rate in 2012, down slightly from an average of 4.75% in 2011. While Axiometrics expects some moderation across different markets this year, especially as new supply begins to come online in much larger numbers, it is forecasting effective rent growth to remain positive in 2013 at an average rate of 3.6%. The firm is also tracking almost 164,000 new units that are scheduled for delivery in 2013, nearly double the 2012 delivery total of approximately 86,000 units.

"The apartment market produced steady, solid results in 2012, though many MSAs were down from the peak rent growth levels seen in the summer of 2011," said Ron Johnsey, president of Axiometrics. "Overall rent growth in 2013 is forecasted to be relatively the same as it was in 2012, but we expect to see more variation across MSAs as effective rent growth increases in some markets but moderates in others. As always, the numbers can change depending on key factors such as continued job growth, consumer acceptance of rent increases for a fourth consecutive year, and absorption of new supply."

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