Continued Strong Momentum for the U.S. Apartment Market in the Third Quarter

An excerpt from a press release issued by the MPF Research Division of RealPage:

The U.S. apartment sector again posted robust revenue growth in the third quarter of 2011, according to MPF Research, an industry-leading market intelligence division of RealPage, Inc.¬†¬†National occupancy climbed 0.6 percentage points during the past three months, and effective rents jumped 1.6 percent. A discussion of the nation’s latest apartment performance results is available at www.realpage.com/MPFQ3Report …

Occupancy reached 94.8 percent as of the third quarter, up from 93.8 percent a year ago and from 91.8 percent when the market’s performance bottomed in late 2009. “While occupancy isn’t yet at an all-time high, the rate has moved a little ahead of the average level recorded over the course of the past decade or so,” Willett said. “The unusually small number of households leaving rental units to buy homes is really the key influence behind today’s strong apartment occupancy performance. Furthermore, it just doesn’t take much new demand to surpass the small block of new supply that’s coming online right now.”

Rents in U.S. apartments grew 4.2 percent between the third quarter of 2010 and third quarter of 2011. The total increase seen since pricing bottomed in late 2009 is right at 7 percent.