Wednesday, December 30, 2015

Breaking Supply Wave, Potential Volatility Expected to Test Apartment Market Resilience in Coming Year via CoStar Group

If current projections hold, a total of about 455,000 new apartment units will be added to the inventory in the top 54 markets making up CoStar's national index from the beginning of 2015 through the end of the coming year. Despite the elevated new supply rolling into almost every U.S. metro, continued strong demand from renters is enabling landlords to push up rents in many markets.

As a result of the intense development focus on urban markets, apartment vacancies are beginning to edge higher in certain CBD and secondary business districts, setting the stage for suburban and non-CBD urban locations, such as Oakland, CA, to see more occupancy and rent appreciation. Vacancy rates in these non-CBD locations are expected to remain at least 50 basis points below those in business districts, according to CoStar projections.

Read mmore...Breaking Supply Wave, Potential Volatility Expected to Test Apartment Market Resilience in Coming Year - CoStar Group

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