Impact from Apartment Construction Boom Expected to Further Hit Rents, Occupancy in 2015 via CoStar Group

With construction on new apartments back in full swing and vacancy rates beginning to trend upward, the robust rent increases enjoyed by landlords in most U.S. metro areas are expected to decelerate to below 2% in 2015 as the multifamily market shifts from full recovery into an expansion phase.

CoStar Group economists are forecasting that apartment vacancy rates will rise in 46 of the 54 top U.S. metros over the next four quarters due to the massive wave of current apartment deliveries and new apartment projects starting almost daily.

According to their most recent analysis, the U.S. apartment vacancy rate will rise from the current 4.1% to over 5% by the end of 2015.

Read more...Impact from Apartment Construction Boom Expected to Further Hit Rents, Occupancy in 2015 - CoStar Group