Connect with us

Hi, what are you looking for?

The American GeniusThe American Genius

Commercial Real Estate

Apartment vacancy rates continue declining, rents increasing

Dripping vacancies, rising rents

As we reported last month, vacancies are dropping and rents are rising, as much as 30% in some markets. Most analysts point to a choice of renting over buying while we point to difficult lending leaving consumers no choice along with the stigma of renting decreasing nationally.

According to Reis Inc. who studies the 82 largest markets, the first quarter of 2010 saw an 8% national apartment vacancy rate which declined to 6.6% by the fourth quarter of 2010 and has already dropped to 6.2% for the first quarter of 2011. Reis confirms our previous assertions that this trend will accelerate in 2011.

Effective rents

The average effective rent rose 2.5% from Q1 2010 to $991 which we anticipate will continue to rise as vacancies dip. The $0 move in days are pretty much over and renters are becoming reacclimated to paying for applications, deposits and higher rents.

This shows a strengthening in the multifamily sector whose lending for building dried up and less and less new units are coming online as opposed to the boom years. However, a strong rental market points to a weakness in the residential real estate sector and the only two ingredients that will change the direction of current events is lending and employment.

Advertisement. Scroll to continue reading.

The American Genius is news, insights, tools, and inspiration for business owners and professionals. AG condenses information on technology, business, social media, startups, economics and more, so you don’t have to.

45 Comments

45 Comments

  1. Sam Trevino

    April 11, 2011 at 11:32 am

    Hello,

    I’m thinking this article has a misprinted word.

    So, “renting over leasing” that’s seriously redundant.

    • Lani Rosales

      April 12, 2011 at 1:06 am

      Good catch, Sam, the mistake has been updated.

Leave a Reply

Your email address will not be published.

The
American Genius
news neatly in your inbox

Subscribe to our mailing list for news sent straight to your email inbox.

Advertisement

KEEP READING!

Real Estate Technology

(TECH NEWS) It turns out that Internet of Things, like smart bulbs in homes, are not secure and give up your info - here...

Real Estate Marketing

(MARKETING) Your fancy, self-animating website might be making people violently ill, even if it is insanely beautiful. Sorry...

Real Estate Marketing

(MARKETING) Conduit is a CRM that does more than CRM, it analyzes your networking data to help you see how to improve your relationships.

Real Estate Corporate

(REAL ESTATE) Zillow has long been a data powerhouse, but a lawsuit about a $150M listing offers a look into listings claims.

The American Genius is a strong news voice in the entrepreneur and tech world, offering meaningful, concise insight into emerging technologies, the digital economy, best practices, and a shifting business culture. We refuse to publish fluff, and our readers rely on us for inspiring action. Copyright © 2005-2022, The American Genius, LLC.