CoStar Group reports that apartment rent hikes are finally beginning to slow due to two main factors. The first is the increased supply of new rental units on the market. Hans Nordby, managing director of CoStar, comments, "The first quarter of this year, 54,000 new apartment homes were delivered to the market [nationally] and demand was about 27,000 apartments. That causes vacancies to pick up a bit." He adds that increased vacancies mean that apartment owners and managers cannot be as aggressive in hiking rents if they want to keep their apartments filled. Of course, not all markets are the same. Rents could continue to rise sharply in those areas with short supply.
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