Rent growth has been steadily increasing over the last few years, but it looks like the industry peaked in 2012, according to an analysis by New York-based market researcher Reis.
While fundamentals like vacancy rates and supply absorption are healthy, the slow pace of job formation has hamstrung owners' ability to raise rents. Asking and effective rents both rose by 1 percent in the third quarter, but that growth is still below the quarterly average from last year. In previous cycles, rent growth would be well above 4 percent given the vacancy rates the industry is now seeing, the report says.
Read more...Reis: Rent Growth on Tap for 2014, but Peaked in 2012 - Multifamily Executive Magazine