It’s a tough time to pick the strongest apartment markets. That’s because the markets with the strongest demand from renters are also the places where developers are the most eager to build new projects. As a result, the strongest and weakest markets so far in 2016 tend to be places where some kind of surprise has upset developers’ calculations—for better or worse.
Strong despite new supply
Rents are growing quickly in a few cities, including Seattle and Nashville, Tenn., despite very high levels of new construction. “The San Francisco Bay Area, Denver and Seattle have easily been the best performing major markets this cycle,” says Jay Denton, vice president with data firm Axiometrics. “Of that group, Seattle is the only one that remains in the upper-tier of rent growth today.”
Read more...Best and Worst Apartment Markets in 2016