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The boon times for apartment stocks, up on average 14% in the first half of the year, are expected to continue a little longer as new data points to a robust and enduring recovery in rents and vacancy rates, according to an article by A. D. Pruitt of Dow Jones today.
"The national average effective rent, the amount paid after discounting, was $997 in the second quarter of the year, up from $974 a year earlier, according to a report by Reis Inc., which tracks leasing data for 82 markets," the article said, adding that "second-quarter rents rose in all but two markets. Meanwhile, the second-quarter vacancy rate stood at 6 percent, the lowest since 2008 and down from 7.8 percent a year earlier."
The nation's two largest public landlords, Equity Residential and AvalonBay Communities, Inc., are both up more than 40% over the last 12 months and continue to hover around 52-week highs, the article continued,
The article said that "these companies still offer investors a good deal because demand for apartment rentals show no signs of abating especially since it's still difficult for most Americans to secure a home loan, analysts say," adding that "consumers burned by the housing crash and college graduates are expected to add another 4.4 million rental households by 2015."
"The national average effective rent, the amount paid after discounting, was $997 in the second quarter of the year, up from $974 a year earlier, according to a report by Reis Inc., which tracks leasing data for 82 markets," the article said, adding that "second-quarter rents rose in all but two markets. Meanwhile, the second-quarter vacancy rate stood at 6 percent, the lowest since 2008 and down from 7.8 percent a year earlier."
The nation's two largest public landlords, Equity Residential and AvalonBay Communities, Inc., are both up more than 40% over the last 12 months and continue to hover around 52-week highs, the article continued,
The article said that "these companies still offer investors a good deal because demand for apartment rentals show no signs of abating especially since it's still difficult for most Americans to secure a home loan, analysts say," adding that "consumers burned by the housing crash and college graduates are expected to add another 4.4 million rental households by 2015."
Architecture Critic
Carter Horsley
Since 1997, Carter B. Horsley has been the editorial director of CityRealty. He began his journalistic career at The New York Times in 1961 where he spent 26 years as a reporter specializing in real estate & architectural news. In 1987, he became the architecture critic and real estate editor of The New York Post.
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