October Rent Growth and Occupancy Rates Are Down, But Strong
Digested from Apartment Data Shows Strongest Post-Recession October
Axiometrics (11/18/15) McCleskey, Stephanie
National annual effective rent growth dropped month over month in October, but October 2015 was the best October since the Great Recession. Occupancy rates also were down month over month, but they were up year over year.
Effective rent growth dropped below 5 percent for the first time since January to 4.88 percent a 32-basis-point decrease from September. But the dip represents a cyclical trend that has occurred for year-to-date effective rent growth during this time frame for the last five years. And year over year, effective rent growth, which was at 4.3 percent in October 2014 and 3 percent in October 2013, continues to improve.
Portland, Ore.; Oakland, Calif.; and San Jose, Calif., continue to remain strong performers, with effective rent growth of 12.4 percent, 12.3 percent and 8.1 percent, respectively. Growth has also been strong elsewhere, with Sacramento, San Diego and San Francisco experiencing rent growth of at least 8 percent.
Occupancy rates dipped slightly in October as well, from 95.3 percent in September to 95.1 percent. But they, too, remain higher than October metrics in post-recession years.