Louisville’s Apartment Market Posts Steady Gains [Video]
Louisville was home to one of the nation’s surprisingly strong apartment markets in 2011 and 2012. The pace of growth has eased to more sustainable levels, but overall fundamentals remain healthy.
Louisville Performance Highlights Q2 2013
Louisville absorbed 521 units in 2nd quarter, which contributed to an occupancy increase of 0.5 points. Effective pricing also jumped 1.9% quarter-over-quarter. Annually, however, occupancy and rent performances in Louisville were the weakest recorded in over two years.
Occupancy: Occupancy fell 0.4 points in the year-ending 2nd quarter 2013. However, the resulting rate of 95.2% was still more than a point above the metro’s decade-average, and on par with the U.S. norm.
Rent Growth: Annual rent growth – although positive – was at its lowest point in 10 quarters. In the year-ending 2nd quarter 2013, effective pricing was up 2.7% year-over-year, with 1.9% of that coming in 2nd quarter, specifically.
Economy: Even though job growth has been strong, the return of demand toward single-family homes appears to be cooling apartment fundamentals to more normal levels.
Outlook: MPF Research expects much of the same for the Louisville apartment market and for apartment fundamentals to normalize. Occupancy should stay where it is while pricing will come in around 2.5% – 3.0% on an annual basis.
Image Source: Flickr