NAA Industry Insider: Apartment Market Tightens as Housing Costs Jump

Rising home-buying costs have helped to boost demand for apartments and have enabled apartment owners to increase rents significantly this summer. The average monthly rent in the third quarter rose 1 percent to $1,073 from the prior quarter, and is the largest quarterly gain in a year, according to a new report from Reis. Compared with the third quarter a year ago, the average monthly rent is up 3 percent. Reis tracks 79 markets, and none recorded a decline in rents. The rental increases beat the forecasts of industry watchers. Some observers expect rent increases to slow due to the pace of growth in recent years as well as a flood of new supply on the horizon.

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