Axiometrics Inc., the leading provider of apartment data and research, reported today that annual effective rent growth maintained its two-year moderation trend in December, with rent growth measuring 2.74%. National occupancy declined slightly to 94.2%. While lower than in recent months, these rates are still above their long-term historical averages, which are 2.15% and 94.0%, respectively.
For 2014, Axiometrics forecasts effective rent growth at the national level to reach 2.70%. Occupancy is expected to remain near the current 94.2% early in 2014, but will likely decelerate late in the year as new supply continues to increase.
“Despite the slowing national trend, many market areas continue to generate rent growth above 3.5%,” said Ron Johnsey, president of Axiometrics. “The apartment market is still strong by historical standards and we expect that trend to continue in 2014 as effective rent growth remains steady, rather than spectacular. In the second half of the year there is some concern about how ever increasing supply will impact the market.”
Read more...Axiometrics Reports Apartment Market Ends 2013 With Slowing But Still Solid Rent Growth