October 2, 2013
Market: Puget Sound, WA
Dupre + Scott reports the overall apartment vacancy rate in the Puget Sound region fell from 5.5% a year ago to 4.6% today despite the 7,200 new apartment units that came online during this span (the most in a year since the early 1990s). This spike in demand is partly due to the 49,900 new jobs created in the region in the past year.
As apartment demand continues to increase, rents in the Puget Sound have risen correspondingly. Region-wide average rents jumped 6.6% year-over-year to over $1,100 and are expected to gain another 2.7% by March 2014.
Read more at Dupre + Scott.
August 27, 2013
Market: Phoenix, AZ
In Q2 2013, Phoenix apartment rents grew at the annual rate of 2.8%. While this increase is relatively low compared to national levels, it is the largest annual gain Phoenix has notched in recent years.
Phoenix’s rent and occupancy growth seem to be concentrated in middle-market apartment communities built in the 1980s. Rents for such properties increased 3.8% in the past year, higher than the 1.7% jump seen in properties built since 2000. In submarkets such as Deer Valley and Gilbert, occupancies for 1980s middle-market apartments are reaching 95% or higher and rent growth is approaching 7-8%.
Read more at Property Management Insider.
Property Management Insider
June 4, 2013
Rents in the Seattle/Tacoma apartment market jumped 2.0% during 1Q 2013, taking the annual pace of growth to 4.2%. Some contributing factors:
- Tight occupancy (95.7% for Q1)
- Strong apartment demand (1,700 units for 1Q and about 7,400 for the year ending Q1) – Only Dallas and Houston had stronger absorption.
- Property managers that are use to dealing with high absorption; they won’t panic and underprice available units.