The Inland Empire is finally seeing some solid job growth, but the large shadow market of single-family rentals is hindering the apartment sector from reaping much benefit.
MPF Research Industry News and Data
Nashville has recently found itself as a national leader in terms of apartment construction activity as developers are drawn to the metro by a strong economy, favorable demographics, and a healthy apartment market.
Apartment demand has been better than expected in recent years, which can be explained by the impact Generation Y is having by delaying marriage and living with Mom & Dad.
What does Generation Y want in an apartment? Multifamily industry professionals ask this question a lot as they seek to better understand this fast-growing segment of the market. At its recent Southeast Apartment Markets Conference, MPF Research assembled a panel of Gen Y’ers working in the apartment industry and asked them that very question.
The outlook for revenue growth in the Tampa apartment market is solid, but competition from well-operated rental single-family homes certainly is something to watch.
Annual job growth levels are at a 12-year high in Omaha, and that has allowed apartment occupancy rates to tighten up considerably.
The Sarasota/Bradenton apartment sector posted strong revenue growth through much of 2011. But with an economy remaining in weak shape, a cool down seemed inevitable – and signs of one emerged in 2012’s 2nd quarter.
Oklahoma City shares a lot in common with Texas markets – and not just geography. Strong job growth has led to some healthy apartment stats, particularly at the top end of the market.
While occupancy in Northern New Jersey’s apartment market almost always is very tight, the area has a tendency to underperform many other locales in terms of rent growth. Right now, however, there’s notable momentum in apartment rents.
One year ago, Little Rock appeared to be one of the nation’s healthier secondary apartment markets. But as job growth levels have waned, so have apartment revenue growth levels.
Sacramento’s economy has really struggled in the past few years, and that’s made it difficult for the apartment sector to gain much momentum. And in 2nd quarter 2012, no major market performed worse than Sacramento.
The apartment market in metro Detroit is doing quite well, actually outperforming results seen for the nation as a whole in terms of annual revenue growth.
Occupancy rates remain strong in the big four Upstate New York metros – Albany, Buffalo, Rochester and Syracuse, but the revenue growth outlook is promising in only one of them.
The gap in rent growth levels has become unusually large between the nation’s primary and secondary markets – even though occupancy rates and job growth numbers are similar. What is fueling that trend?