Apartments Hit the “Full” Mark Again in May
Digested from Axiometrics
Apartment occupancy hit 95 percent in May, which is the first time it was at or above 95 percent since last September.
Hitting the 95 occupancy is significant, because Axiometrics considers the market “full” at that point. May’s occupancy level was higher than April’s 94.8 percent, but lower than the 95.2 mark posted last May.
The bulk of the Axiometrics' Top 50 markets also have occupancy levels above 95 percent.
“In addition to the overall national market, 30 metros among the Axiometrics top 50, based on the number of units, recorded occupancy rates of 95.0 percent or higher in May, with 14 of those at 96.0 percent or more. Occupancy has increased year-to-date in all except five of the top 50 markets,” write Axiometrics’ Dave Sorter.
As occupancy increased in May, rent growth held at April’s 2.2 percent mark. Over the past six months, rent growth has remained in a range of 19 basis points. In five of those months, rent growth stayed between 2.12 percent and 2.18 percent.
The same steadiness could be found in Axiometrics Top 50 markets.
“Rent growth increased by more than 100 basis points only in Warren, Mich., [+122 basis points], while it decreased by more than 100 basis points only in Anaheim, Calif., [-114 basis points],” Sorter wrote. “Some 31 metros recorded rent-growth changes in the +25 basis to -25 basis range.”