Apartment Rent Growth Slows in Third Quarter
For those investors that own income producing properties or tenants looking to move, the following information may be of interest:
Apartment rents grew more slowly in the third quarter than they have since 2003, according to Axiometrics Inc., an apartment research firm.
During and after the last recession that ran from March to November of 2001, the economy lost about 1.8 million jobs. Since jobs are what drive the apartment market, rents didn’t increase for nine consecutive quarters, Axiometrics says.
Beginning in the first quarter of 2004, annual rent growth turned positive and continued to be positive through the third quarter of 2008, when rent growth slowed to 0.8 percent, the lowest growth of any quarter since 2004, Axiometrics says.
Axiometrics predicts that apartment growth will continue to slow during the current economy.
The markets with biggest declines in annual effective rent growth compared to a year ago are:
- Austin, Texas
- Charlotte, N.C.
- Chicago
- Los Angeles
- Portland, Ore.
- Raleigh, N.C.
- San Jose, Calif.
- Santa Ana, Calif.
- Virginia Beach, Va.
Markets with improved annual effective rental rate growth compared to a year ago were:
- Boston
- Birmingham, Ala.
- Durham, N.C.
- San Diego, Calif.
- Washington, DC.
With less rental properties available for tenants, this may be a great opportunity to look at purchasing your own home. If you are a first time home buyer, check out our First Time Home Buyer Community for answers to your questions and resources to help you make your next move.
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