The apartment market continued to post positive results in February 2013. Annual effective rent growth was 3.53% and the occupancy rate increased 35 basis points (bps) from a year ago. While rent growth has remained steady the pace has been gradually slowing. February’s annual effective rent growth was the lowest since August 2010.
Breaking the results down by asset class points out a number of differences: slowing growth rates for Class A, steady growth rates for Class B, and improving growth rates for Class C. Annual effective rent growth for Class A properties slowed to 3.2% at the national level in February 2013, after peaking at 5.9% in June 2011. In San Francisco, one of the previous hottest Metropolitan Statistical Areas (MSAs) in the country, Class A annual rent growth actually turned negative, at -2.5%. More details on the San Francisco MSA can be found at the end of the newsletter.
Read more...February 2013 Apartment Market Summary via Axiometrics