2015 May Be Best Year Yet for Rental and Renewal Growth
Digested from “Multifamily Rents Up This Spring”
National Real Estate Investor (6/9/15) Anderson, Bendix
With the housing market as fickle as ever, apartment rents are rising faster than expected this year, which is a good sign for the hundreds of thousands of new apartment communities going up all across the country.
According to MPF Research, rents for new leases increased an average of 6.5 percent compared with rates last May, and rents to new renters also increased by 8.4 percent. In addition, rents for renewals increased by 5.1 percent. Even though these numbers are high, analysts at Reis believe the abundance of new communities under construction may push vacancies up by the end of the year.
Industry experts anticipated rent growth at 4 to 5 percent, and so far the market is performing “at the higher end of that range,” indicating that 2015 may be one of the best in years for rental and renewal growth in apartment communities.