US apartment rents have risen 2.9% in the year to the third quarter, faster than previously.
Apartment rents rose 0.4% faster than in the year to the second quarter, according to the latest data from real estate technology and analytics firm RealPage.
Occupancy also rose to 95.8% in the third quarter, up from 95.4% in the previous three months.
US apartment rents have risen 2.9% as momentum surpases expectations
RealPage chief economist Greg Willett says, “Momentum in the apartment market’s performance during the third quarter slightly surpassed expectations. Still, there doesn’t seem to be a pronounced shift in the big-picture story.
“We are about to move into the period of seasonally slow apartment leasing that comes with the cold weather months. Demand will trail completions just ahead, making it tough for the rent growth pace to gain additional traction.”
Demand for 106,716 apartments in the third quarter well surpassed completions that totaled 83,170 units.
Year-to-date in 2018, the country’s occupied apartments total rose by 295,750 units, compared to new project deliveries totaling 232,911 units.
Building in the U.S. apartment sector remains aggressive. Market-rate apartment completions have reached from 300,000-325,000 units annually since late 2016, a total which is set to continue at least through the end of 2019.
“With so much high-end new product finishing in the near term, the leasing environment will be competitive in that luxury apartment niche,” Mr Willett says. “At the same time, product shortages remain for moderately-priced rental housing. It’s tough to find available apartments at the middle to lower-end price points across most neighborhoods.”
RealPage is a leading global provider of software and data analytics to the real estate industry.