Solid job formation was cited by an expert as one of the reasons for the recent increase on apartment demand
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Recent housing data point to house buying as actually being cheaper than renting, but the demand for apartments reached a record high over the second quarter of the year.
Nationwide, apartment demand increased by a third in the second quarter year over year, according to a recent RealPage report.
“Today’s strong demand for apartments reflects the combination of solid job formation, continued limited loss of renters to home purchase, and widespread availability of appealing new apartments,” said Greg Willett, chief economist for RealPage.
There were 175,645 apartments completed last quarter – exceeding 86,431 units completed in the same period in 2016.
Mid-year apartment occupancy stood at 95% but still stood a bit shy from mid-2016’s 95.3% rating, according to Axiometrics.
Minneapolis-St. Paul is in the lead of mid-year apartment occupancy with a 97.4% occupancy rate, followed by Milwaukee (97%), New York (96.9%), Detroit (96.8%) and Providence, R.I. (96.6%).
“Total demand for new apartments is strong, but that demand is getting split among many individual projects in the country’s markets registering the most aggressive building,” said Jay Denton, Axiometrics vice president.
“In urban core settings, those new deliveries are clustered really tightly,” Denton said. “It’s not unusual to have multiple projects within blocks of each other all simultaneously moving through initial lease-up.”
Related stories:
Which state has the biggest disparity between housing wage and rent affordability?
Rising home prices boost rental affordability
Nationwide, apartment demand increased by a third in the second quarter year over year, according to a recent RealPage report.
“Today’s strong demand for apartments reflects the combination of solid job formation, continued limited loss of renters to home purchase, and widespread availability of appealing new apartments,” said Greg Willett, chief economist for RealPage.
There were 175,645 apartments completed last quarter – exceeding 86,431 units completed in the same period in 2016.
Mid-year apartment occupancy stood at 95% but still stood a bit shy from mid-2016’s 95.3% rating, according to Axiometrics.
Minneapolis-St. Paul is in the lead of mid-year apartment occupancy with a 97.4% occupancy rate, followed by Milwaukee (97%), New York (96.9%), Detroit (96.8%) and Providence, R.I. (96.6%).
“Total demand for new apartments is strong, but that demand is getting split among many individual projects in the country’s markets registering the most aggressive building,” said Jay Denton, Axiometrics vice president.
“In urban core settings, those new deliveries are clustered really tightly,” Denton said. “It’s not unusual to have multiple projects within blocks of each other all simultaneously moving through initial lease-up.”
Related stories:
Which state has the biggest disparity between housing wage and rent affordability?
Rising home prices boost rental affordability
