U.S. apartment vacancies dropped to a 10-year low in the fourth quarter, allowing for rent increases that are likely to continue this year, Reis Inc. (REIS) said.
The vacancy rate fell to 5.2 percent, the lowest since the end of 2001, the New York-based property research firm said in a report today. It was 5.6 percent in the previous three months and 6.6 percent a year earlier. The average monthly effective rent, or what tenants paid after landlord giveaways, climbed 2.3 percent from a year earlier to $1,009, Reis said.
Rising foreclosures (HOMFREO) and stricter mortgage-lending standards have helped make rental housing the best-performing segment of commercial real estate for the past two years. The vacancy rate has fallen for seven straight quarters from a three-decade high of 8 percent at the end of 2009, according to Reis.
“With the strong occupancy we had this year, we were really able to push rents,” said Lori Mason Curran, director of real estate investment strategy for the property arm of Seattle- based Vulcan Inc., which owns more than 500 units in the city that are more than 97 percent leased.
Hiring by local employers including Amazon.com Inc. and Microsoft Corp. drove tenant demand, enabling Vulcan to increase leasing fees 6 percent to 8 percent in 2011, Mason Curran said. Seattle’s average effective rent rose 2.7 percent in the fourth quarter from a year earlier, according to Reis.
http://www.bloomberg.com/news/2012-01-05/u-s-apartment-vacancies-decline-to-a-decade-low-of-5-2-rents-increase.html
The vacancy rate fell to 5.2 percent, the lowest since the end of 2001, the New York-based property research firm said in a report today. It was 5.6 percent in the previous three months and 6.6 percent a year earlier. The average monthly effective rent, or what tenants paid after landlord giveaways, climbed 2.3 percent from a year earlier to $1,009, Reis said.
Rising foreclosures (HOMFREO) and stricter mortgage-lending standards have helped make rental housing the best-performing segment of commercial real estate for the past two years. The vacancy rate has fallen for seven straight quarters from a three-decade high of 8 percent at the end of 2009, according to Reis.
“With the strong occupancy we had this year, we were really able to push rents,” said Lori Mason Curran, director of real estate investment strategy for the property arm of Seattle- based Vulcan Inc., which owns more than 500 units in the city that are more than 97 percent leased.
Hiring by local employers including Amazon.com Inc. and Microsoft Corp. drove tenant demand, enabling Vulcan to increase leasing fees 6 percent to 8 percent in 2011, Mason Curran said. Seattle’s average effective rent rose 2.7 percent in the fourth quarter from a year earlier, according to Reis.
http://www.bloomberg.com/news/2012-01-05/u-s-apartment-vacancies-decline-to-a-decade-low-of-5-2-rents-increase.html
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