U.S. Apartment Sector Continues to Roll
Third-quarter market multifamily market update.
- Atlanta, GA (1888PressRelease) October 25, 2011 - The U.S. apartment sector continued its recent run of success with a strong third-quarter performance, as both rental and occupancy rates rose during the period. The good news should keep coming, since the apartment industry appears poised for further growth in 2012.
That market insight was provided by the guests of this week's "Commercial Real Estate Show," which took a detailed look at the U.S. multi-family sector.
The national apartment occupancy rate increased by .6 percentage points during the third quarter and now stands at 94.8 percent, according to Jay Parsons, national markets analysis manager at RealPage Inc. Furthermore, rental rates rose by 1.6 percent during the quarter.
"We're starting to get back to the level of average monthly rental rates that we had prior to the recession … ," Parsons said. "As we go forward, any additional growth is really true growth," as opposed to market recovery.
The strong occupancy rates are fueled in part by college graduates who are getting jobs and moving into apartments, Parsons said. The trend of people in their late 20s and early 30s deciding to stay put in their apartments and not buy homes is a factor as well, as is the lack of new construction, he added.
Some of the strongest performing apartment markets include the San Francisco Bay area; Austin, Texas; Minneapolis; Seattle; Phoenix; and Charlotte, N.C. Meanwhile, the apartment sector continues to struggle in Las Vegas, Atlanta and Jacksonville, Fla according to MPF Research.
Parsons predicted that the national occupancy rate would improve by half a percentage point in 2012 and that rental rates would grow by approximately 4.5 percent next year.
The show's other guests included Tom Walsh, senior vice president of Grandbridge Real Estate Capital LLC; Jim Jarrell, REO asset manager for TriMont Real Estate Advisors; Susan Ansel, executive vice president and chief operating officer for Gables Residential; and Ernie Eden, vice president of Bull Realty's Apartment Group.
The show is available for download here.
The next "Commercial Real Estate Show" airs October 29 and will provide an update on the U.S. industrial market.
About the "Commercial Real Estate Show":
America's "Commercial Real Estate Show" is a national talk radio show about commercial real estate. New shows are available every Thursday at the show website, www.CREshow.com. Shows are also broadcast on several AM stations, including Atlanta stations Biz 1190 on Saturday at 10 am and Talk 920 on Sunday at 9am. Show podcasts are available on-demand on iTunes and the show website.
The show host is 30-year commercial real estate veteran Michael Bull, CCIM. Michael is the founder of Bull Realty, Inc, a regional commercial brokerage firm with three offices headquartered in Atlanta, Georgia.
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