Daily Archives: October 2, 2013

U.S. Apartment Market Sustains Strong Performance During Q3 2013

Apartment occupancy remained tight during the third quarter while rents continued to climb at a pace above the historical norm giving the U.S. apartment market another strong performance during the third quarter of 2013, according to MPF Research, the Carrollton-based apartment market intelligence firm.

The healthy quarterly performance reflected strong leasing activity at new developments coming on-stream plus solid pricing power at most already-full existing properties.

In this exclusive video report, Greg Willett and Jay Parsons from MPF Research highlight the nation’s latest apartment occupancy and rent growth statistics as well as other key performance indicators.

For additional information, read the related press release.

U.S. Apartment Market Performance Highlights Q3 2013

Occupancy: Occupancy in the nation’s 100 largest metros averaged 95.4 percent during the third quarter. Occupancy has been hovering around the essentially-full mark of 95 percent for two years, with slight moves seen from one quarter to another aligning with normal seasonal patterns.

Rent Growth: Effective rents for new leases grew 1.2 percent during the quarter, taking the annual pace of increase to 3.2 percent.

Apartment Demand: Demand for 47,107 apartments registered across the country’s 100 largest metros against 44,799 units finished during the third quarter.

Top 10 Rent Growth Leaders: Oakland Surges to Top Spot

Among large individual metros, Oakland moved into the #1 position on the list of the country’s annual rent growth leaders as of the third quarter. Pricing for new leases grew 7.9 percent during the past year. Denver-Boulder’s ranking also improved, as the market’s 6.8 percent annual rent growth pace was the second-best nationally. While San Francisco slipped from its previous top spot for annual rent growth, pricing power remained strong. The next three positions also went to metros in the red-hot Pacific Northwest region.

Rent Growth Leaders in Q3 2013
Rank Metro Annual
Rent
Growth
1 Oakland 7.9%
2 Denver-Boulder 6.8%
3 San Francisco 6.6%
4 (Tie) San Jose 5.9%
4 (Tie) Seattle-Tacoma 5.9%
6 Portland 5.7%
7 Miami 5.0%
8 Houston 4.8%
9 (Tie) Austin 4.2%
9 (Tie) Nashville 4.2%

 

Metros that just missed the cut-off point for the best-performers list included Fort Worth, West Palm Beach and the southern California trio of Orange County, San Diego and Los Angeles.