New from MPF Research: Rent Growth Leaders, Harvard’s Housing Report, Renewal Pricing Power
MPF Research provides actionable market research to apartment investors and operators. Here’s the latest from RealPage’s multifamily intelligence division.
Robust apartment demand leads to healthy occupancy, stable rent growth
Apartment demand surged to a near-record volume in 2nd quarter 2017, easily outpacing completions. Strong absorption lifted occupancy rates, leading to stabilized rent growth levels.
A new quarterly report looks at the supply-demand fundamentals and occupancy and rent growth leaders by market.
Harvard housing report finds rental units in short supply
There is not enough rental supply to meet demand, Harvard University’s Joint Center for Housing Studies reported in its annual housing study.
The report found vacancy rates sit at three-decade lows, with millennial and senior households opting into the rental market instead of purchasing homes. In 20 of the 100 markets tracked by MPF Research, vacancies remain below 3%.
The study also found much of the recent development spree has related to luxury product, while demand exists at all price points.
Metros seeing the largest differences in new-lease and renewal trade-out
Of all the nationwide apartment leases that expired in 1st quarter 2017, more than half were renewed. Within some metros, lease renewals commanded greater price increases than new leases for the same units would have.
Among the top five metros with the greatest disparity between new-lease and renewal trade-out, New York ranked first. There, renewals translated to rent growth of 5.4%, while new leases saw a rental rates drop 1.9%
For the latest multifamily market insights, visit MPF Research.