U.S. Apartment Vacancies Decline to a Decade Low, Rents Climb

BloombergJanuary 05, 2012, 4:52 PM EST
By Hui-yong Yu

Summary: U.S. apartment vacancies dropped to a 10-year low in the fourth quarter, allowing for rent increases that are likely to continue this year, Reis Inc. said.

Key Quotes:
The vacancy rate fell to 5.2 percent, the lowest since the end of 2001.

Rising foreclosures and stricter mortgage-lending standards have helped make rental housing the best-performing segment of commercial real estate for the past two years.

“The implicit demand for rental units will remain high as long as the for-sale housing market remains on the ropes,” Victor Calanog, head of research and economics for Reis, said in the report.

Rent growth may stall starting next year as a wave of new apartment development brings new projects to the market, Calanog said.

Read the full article at U.S. Apartment Vacancies Decline to a Decade Low, Rents Climb.

A. Joseph Marshall
Coldwell Banker Commercial
Commercial Real Estate Advisor
Savannah, Ga