Apartment Completions Slow Rent Growth … Except Where They Don’t via Property Management Insider

Rent growth in the U.S. apartment market has exceeded the expectations of many during 2014, with much of that growth stemming from very strong pricing power in bread-and-butter, middle-market communities. Prices are tending to climb more slowly in the newest, most expensive units, partly reflecting the impact of large volumes of new properties moving through lease-up. Among projects completed during this cycle (since 2010) where initial leases have turned at least once, annual rent growth is running at 1.2%, versus the 3.7% average for all units.

That overall trend, however, certainly doesn’t hold true across all locations. Select metros are posting substantial rent growth in new projects, while a few are registering actual rent cuts at the top of the market.

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