June 2013 Apartment Market Summary via Axiometrics

After a slowdown in April 2013, when annual effective rent growth appeared to be headed below 3.0%, the growth rate increased for the second consecutive month in June. For the month, annual effective rent growth measured 3.51% while the occupancy rate increased 41 basis points (bps) from its level a year ago. Despite the recent slowing trend in effective rent growth at the national level, growth rates continued to rise from May to June, even with the approximately 70,000 units that have already been delivered nationally this year.

All three asset classes (A, B, and C) increased effective rent growth from May to June. Many Metropolitan Statistical Areas (MSAs) also followed the national trend, showing an increase in annual effective rent growth across all asset classes. When comparing June 2013 to June 2012 results; however, Class A decreased 79 basis points (bps); Class B increased 9 basis points; and Class C showed the best annual growth of 62 basis points.

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