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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Related Video: MPF Research Reports Slowing U.S. Apartment Market Rent Growth in 2012.

 

Jay Parsons

National Market Analysis Manager, MPF Research

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Jay Parsons is the national market analysis manager for MPF Research. Jay heads up MPF’s market analysis team, which tracks and forecasts apartment trends – as well as the economic and demographic patterns that shape them – across the country down to a neighborhood level. He also oversees the production of the company’s quarterly Apartment Market Reports. Jay also serves as the host of “Apartment Market Dynamics,” MPF’s video news program highlighting apartment market trends in metros of all sizes across the country. He has written articles for industry publications, including Multifamily Executive and Units.

Jay began working for MPF Research in March 2009 as a market analyst before moving into his current role in March 2011. Prior to joining MPF, he worked as a reporter for The Dallas Morning News, where his duties included coverage of local government and economic development. A native of Charlotte, North Carolina, he is a graduate of the University of Maryland. Jay is a member of the DFW Association for Business Economics and the DFW Real Estate Research Forum.

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