After peaking in the second quarter of 2011 at 5%, annual effective rent growth (ERG) for the U.S. slowed to an annual pace of 3.4% during the first quarter of 2013.
Digging a little deeper, we find that the recovery in the U.S. apartment market has not been the same in all geographic regions. In fact, in 27 markets out of a total of 88 markets, ERGs are increasing at a higher rate than the U.S. market average, averaging 5% in the first quarter of 2013.
If we also consider which of these specific markets had the largest changes in the rate of growth as well, our list narrows down to just four markets, making them the hottest markets now. As these markets recovered more slowly than most of the others, they merit closer analysis to determine the reasons for their growth, as well as their investment potential. To help pinpoint some reasons for the growth within these markets, we have also included a table below showing all 27 market’s new supply (permitting) and demand (job growth).
Read more...Apartment Markets Now Experiencing Greatest Rent Growth