Here’s a happy way to end the day (insert sarcasm here): According to this piece at Multifamily Executive the apartment market in the Piedmont Triad is expected to experience the 9th highest rate of vacancy growth in the country – .8% – from 1Q14 to 4Q15:
Many prognosticators think the great run in the apartment market is coming to an end. After performing incredibly well for the past four years,the tide is starting to turn against the marketplace.
Sweeping changes over the next two years are going to cause fundamentals in the market to weaken for the first time since 2009. Significantincreases in construction activity, for example, are going to send a torrent of properties into the market over the next seven quarters. Of course, these changes won’t be uniform across the United States. So it’s critical to understand which markets are going to see the most challenges…
Many of the markets that are projected to see the largest vacancy increases over that interval are among the fastest-growing markets in the country as measured by metrics such as employment growth, population growth, and household formation rate…
Here’s a little more cheerful news:
It’s unlikely rent growth will turn negative in any market before the end of 2015, but growth could be muted, particularly in submarkets with a lot of new construction and fervid competition.
Still, it could be worse, like in Charlotte where the vacancy rate is expected to grow by 1.3% from 1Q14 to 4Q15, the highest rate in the nation.