Tight Supply & Rents HighFri, 2012-04-27Leasing activity showed little signs of slowing during the first quarter, partly because of the relatively mild winter in the Northeast. Net absorption, or the net change in occupied stock, remains strong with 36,488 units leasing up. Tight supply conditions with only 7,342 apartment units coming online in the first quarter are helping performance of apartment properties around the nation.  National asking and effective rents remain strong, with effective rents (asking rents net of concessions) increasing at its fastest rate since end-2007. Asking rents grew by 0.5% and effective increased by 0.9% in the first quarter.
Reis expects effective rent growth to accelerate even more as vacancies tighten within the 4% band; with availability so scarce, landlords have little incentive to concessions. Click on the graph to the right to enlarge. Excerpt from the ReisReports Q1 Rent Growth Trends. Click here to view the original report in its entirety.  Back to article index
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