Today’s Wall Street Journal has an article about rising apartment rents in the US:
And with vacancy levels falling, rents appear poised for further growth, according to Reis, which said the rental vacancy rate fell to 4% in the first quarter, down from 4.2% in the fourth quarter and half the level in 2009.
“Rents are at a higher base and still growing,” said Ryan Severino, an economist at Reis. “They will likely keep growing for the next few years.”
Rental pressure has been building for years, as rising demand has run into an undersupply of apartments. With employment rising slowly but steadily, more young people are forming households, usually by leaving their parents’ residences or breaking off from groups of roommates.
In the Triad rents have been projected to grow and vacancies to fall as well, but not as much as the national average. In it’s Fall 2013 report Real Data projected the Triad’s vacancy rate to approach 6% and rent to increase 2-3% in 2014. Thus the market is strong for the Triad relative to its past performance, but still lags behind other markets throughout the US.