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.
Read more...Apartment Completions Slow Rent Growth … Except Where They Don’t | Property Management Insider