According to a recent report released by Axiometrics, the U.S. rental apartment market is still experiencing growth despite the slowly-blooming housing market.
The data shows that the rental sector experienced moderate growth in the third quarter, with a rental rate increase of 3.64 percent in September and the nationwide occupancy rate climbing to 94.55 percent. However, the industry analysis firm notes that the total effective rate of rental growth for the quarter was 3.7 percent, slightly lower than the 4 percent growth rate in the second quarter.
The firm also notes that most of the new unit supply has yet to come on line, a change that will negatively affect both occupancy rates and rental prices. However, during the third quarter, 28,000 new units became available, which is almost equal to the 31,593 units that came online during the entire first half of the year. Therefore, the slightly slowed growth is still promising in the face of even more new units.
The small decrease in rental growth is also heartening to rental property managers who have watched the growth of the housing market warily. A strong housing market generally leads to a weaker rental sector. Fortunately, the recent report shows that property managers are likely to continue to receive rental applications even in the face of housing growth.