Most people think that when a flood of new supply hits the apartment market, occupancy and effective rents will go down. That’s true in most cases, but not in the first half of 2014, according to Axiometrics research. Even though 180,000 units have come on line in the past year, with thousands more on the way in the third and fourth quarters, occupancy and effective-rent growth have been at their highest levels since almost the turn of the 21st century.
Occupancy in May was 95.0 percent, the highest since Axiometrics started reporting monthly in April 2008. Early-release second-quarter 2014 numbers also show occupancy at 95.0 percent, the best quarter since the second quarter of 2001.
Additionally, the 2Q14 statistics show the quarter-over-quarter effective-rent growth rate at 2.4 percent, the strongest performance since the third quarter of 2000.
So why is this cycle different from most others? Here are some answers:
Read more...5 Reasons Occupancy Is Growing Stronger - Multifamily Executive Magazine
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