West Palm Beach Apartment Market Outperforms South Florida Neighbors
The West Palm Beach metro area has outperformed its South Florida neighbors for annual rent growth in each of the past five quarters, even though occupancy rates still have some room to improve.
West Palm Beach Apartment Market Update for Q4 2012
Rent growth levels have been consistently mild as of late in the South Florida region, but not in Palm Beach County where annual rent growth topped the national average in each of the past four quarters. Palm Beach County had an annual rent growth of 4.0% as of Q4 2012, which was a full 100 basis points better than the U.S. average.
And that’s been interesting to see because when you compare occupancy rates in the South Florida Region, Palm Beach County is usually dead last. Occupancy as of Q4 came it at 94%. However, over the past two years occupancy has climbed 250 basis points and that upward momentum helps explain the better rent growth. When occupancy is trending up, operators tend to feel more confident in raising rents.
So the big question for 2013 is can Palm Beach County as a whole sustain strong rent growth. MPF Research is expecting to see improvement in most of the county’s submarkets and that should keep rent overall rent growth right around 4.0% or probably just under that.
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