A Glass Half Full
Vacancy rates for all apartment buildings with 5 units or more declined to 12.1% from 12.5% in the previous quarter, according a National Multi-Housing Council (NMHC). The national vacancy rate dropped to 7.2% from the prior quarters 8.2%, the lowest level for first quarter vacancy rates since late 2008. Local markets point to the South and West being the weakest rental markets with while the Northeast had the lowest vacancy rate, coming in at 5%.
Although effective rent fell by 2.3% over last year, it was more than half the 5.6% decline of 2009. Rent declines have not only slowed but have finally reversed. The chart above points to the early beginnings of a reversal in trend. But investment properties will depend on a stronger rebound. We’ll need to see significant job growth to support a continuing rent rate recovery.
Longer Term Prospects look strong: Continue reading this post