Real Data’s October survey results show that the apartment market remains very strong in the Piedmont Triad. Their market summary says it best:
The Triad apartment market is tightening with an average vacancy rate at just 4.0%. Over the last year demand has been strong with 2,348 units absorbed, easily offsetting the 1,595 units added to the supply over the same time period.
The development pipeline includes 2,814 units under construction and another 2,141 units proposed…
The region has posted strong rent growth of 3.8% over the past twelve months. The average rental rate is now $876 per month, as compared to $832 just twelve months ago. One bedroom units average $769, two bedrooms rent for an average of $869 and three bedrooms rent at $1,093 on average.
The report also indicates that the average vacancy rate should hold close to 4.0% for the next year and rents will continue to grow at a yearly rate of 3.5-4.5%.
So which submarkets are the hottest in the Triad?
Occupancy – Guilford Northeast (97.5%)
Average Rent – Guilford Central ($1,091)
Average Rent per SF – Forsyth Central ($1.172)
Units Under Construction – Forsyth Central (573)
To get a full copy of the Real Data October, 2018 report go to aptindex.com.
Real Data’s April 2017 report shows that rents increased by 1% over the previous six months, which brought the one-year growth to 3.5% overall. Vacancy rates rose from 5.6% to 6% over the prior six months, but that still left the vacancy rate significantly lower than the 7.5% the area experience in April 2016.
Real Data expects the vacancy rate to remain around 6% over the next year and rent growth to remain strong.
In terms of new development, they report 2,768 units under construction (1,799 in Guilford County) and another 2,079 proposed.
To access the full report, including individual property data, visit aptindex.com
This morning PTAA held its Industry Forecast Breakfast featuring a presentation by Real Data’s Charles Dalton. He shared lots of data, but probably the most important takeaway is this: demand will exceed supply for at least the next 12-18 months. That means, unless something unforeseen happens, we’ll likely see rents continue to rise and vacancy rates continue to fall.
Real Data released their October, 2016 market update for the Piedmont Triad and the numbers were good. Here are the basics:
Vacancies – 5.6%, down from 7.5% in March
Average rent per square foot – $0.843, up from $0.813 in March
Same-store rent change – 2.5%, up from 0.7% in March
The sub-market with the lowest vacancy rate was Guilford-High Point at 3.8% and the sub-market with the highest was Forsyth-East at 8.4%. Highest average rent per square foot was found in Guilford-Central at $1.072 (followed closely by Forsyth-Central at $1.071) and the lowest was found in Guilford-High Point at $0.697.
In general the Piedmont Triad apartment market remains strong and Real Data expects it to continue in the near future. From the report:
“The average vacancy rate will approach 5.0% over the next year. Rents growth should remain strong over the next year as occupancies reach historical highs.”
To get a full copy of the report, including extensive data on sub-markets and the surveyed apartment communities, you can visit www.aptindex.com.
According to this slideshow in the Triad Business Journal, which is based on data from Apartment List, the highest average rent for a 2BR apartment in the Triad is in High Point. The report is for August, 2016 and is based on listings on the Apartment List site, which probably explains the discrepancy with Real Data’s April report. That report shows that in the Triad sub-markets High Point’s rents are not the highest of the Triad sub-markets. In fact, the average rent per square foot in High Point is the lowest of any of the Triad sub-markets tracked by Real Data.
The lesson here is not that Apartment List is wrong, but that when presented with data you need to look at the methodology behind the data. In this case Apartment List is using only the data from their own site while Real Data is surveying almost all of the market rate apartment communities in the Triad. Also, Apartment List is using list price while Real Data is surveying apartment communities and incorporating concessions into average rent calculation. In other words you have two different methodologies, two different data sample sets and thus two very different results.
Today Real Data released the results of its latest market report for the Piedmont Triad and the numbers remain strong:
Vacancy – 6.9% (up slightly from 6.5% in Sep, ’14)
Average rent – $741 (up from $728 in Sep, ’14)
Average rent per SF – $0.788 (up from $0.744 in Sep, ’14)
Same-store rent change $ – $8.87 (it was $10.60 in Sep, ’14)
Same-store rent change % – 1.2% (it was 1.5% in Sep, ’14)
The sub-market that saw the greatest growth was the Central Forsyth market which added 322 units which helps explain the 12.5% vacancy rate in the area. Central Forsyth also has 397 units under construction, which is impressive but Central Guilford has 595 under construction. Long story short, the downtown Winston-Salem and Greensboro markets are exploding in terms of units. Rent per SF in those markets are by far the highest with Greensboro coming in at $1.018/SF and Winston-Salem coming in at $0.979/SF – the next closest is the NW Guilford sub-market at $0.809/SF.
Other highlights of the report include the fact that Alamance/Burlington has 401 units under construction and that the sub-markets with the lowest vacancy rates are Northern Guilford (4.4%) and Eastern Forsyth (4.5%).
You can buy a full copy of the report, which includes extensive demographic data and property-specific reports, at www.aptindex.com
Average apartment vacancy in the Triad was a historically low 8.3 percent in March, compared to 8.7 percent in September, according to a report released Monday from Real Data.
The Triad’s vacancy rate had been 8.4 percent in March 2012…
The market report forecasts that the average apartment vacancy in the Triad will approach 7 percent in the coming year, while the average rent of $699 per month is expected to grow by about 3 percent in that time frame.
In 2009, the Triad had a vacancy rate of nearly 14 percent.