The national apartment occupancy rate continues to climb, hitting 96.5 percent in the third quarter of this year, according to data from RealPage.
This represents a slight uptick from the 96.2 percent occupancy rate in the third quarter of 2015 and is just below the all-time high of 96.8 percent set in 2000 during the height of the tech boom.
Retention of current renters remains a big factor in the favorable balance between demand and supply in the apartment sector, says Greg Willett, chief economist for RealPage. With loss of renters to home purchase holding below the historical norm, the limited churn of residents is helping keep the occupied apartment count high.
High demand means climbing rents: RealPage data show that new-resident rents are up 4.1 percent from last year, averaging a record high of $1,292 per month. In addition, new construction across the country has tended toward high-end Class A apartment communities, which have higher rents.