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

 

Jay Parsons

Director of Analytics & Forecasts, MPF Research, MPF Research

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Jay Parsons is the Director of Analytics & Forecasts for MPF Research, the market intelligence arm of RealPage, Inc. Jay’s role includes overseeing MPF’s five-year forecast models, providing market advisory services to clients and managing the team that tracks and analyzes conditions in 300+ markets across the country. Jay also helps lead Revenue Forecaster, RealPage’s on-demand forecasting platform specific to client portfolios down to individual assets and unit types – seamlessly merging submarket expectations with daily rent roll dynamics. In addition, he hosts “Apartment Market Dynamics,” MPF’s video news program highlighting apartment market trends across the country. He has written commentary pieces for several publications, including American Banker, Multifamily Executive, Mortgage Bankers Association NewsLink, Units and Multihousing Pro. He has spoken on various topics, including multifamily economics and Millennial generation trends, at industry conferences and events. Jay has been with MPF Research since March 2009. He is a native of Charlotte, N.C., and a graduate of the University of Maryland, currently living in the Dallas area.

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