Apartment Rents Tick Higher For First Time In a Long Time

April 6, 2010 2:33 PM EDT
After five straight quarters of declines, apartment rents rose during the first quarter of 2010 in a signal that the hard times for the hard-hit sector may be coming to an end.

The apartment vacancy rate stayed flat at 8 percent in the first three months of 2010 according to the New York research firm, Reis Inc.

Of the 79 U.S. markets that Reis tracks, 60 of them showed a rise in apartment vacancy rates, with Miami and New York leading the way, up 1.6 percent and 0.9 percent respectively. The rise in apartment rents came at a time of the year when traditionally the sector suffers, giving a push for the upcoming spring and summer leasing season.

"Deterioration seems not to have been arrested but reversed," director of research for Reis, Victor Calanog said. "Several markets have bottomed and may be on track to recovery."

Vacancies in the apartment sector can be tied to unemployment as potential renters are dissuaded from moving in during a downturn.

The average renter is averaging 19 months of occupancy, and despite low mortgage rates and government backed stimulus efforts fewer renters are leaving apartments to buy homes.

Markets that are still showing signs of contraction in the apartment sector were led by Portland, Oregon which saw a decline of 0.7 percent, followed by Las Vegas and San Diego, but the three markets have seen recent signs of growth in home-buying activity.

You May Also Be Interested In

Related Categories

General News

Add Your Comment