The apartment rental market has turned in a strong performance this year, with national effective rents up 2.5% since January, according to new data from Dallas-based Axiometrics Inc.
Axiometrics reports that out of the top 88 markets it tracks, 31 have raised rents more than 3% since January, while 27 have raised rents more than 5%. Axiometrics has also found that Class C properties have shown the most momentum since January, with a 2.75% year-to-date increase for effective rents, and 93 basis points – to 91.9% – for occupancy.Â Class B properties are up 2.72% for effective rent growth, and Class A properties are up 2.49%.
‘The strong performance is driving new construction, and while so far it has been largely concentrated in the urban core, we are beginning to see construction activity spread beyond the urban core in several markets,’ says Jay Denton, vice president of research at Axiometrics. ‘While accelerating, new apartment construction will only add 0.7 percent to overall inventory in 2012 and 0.9 percent in 2013, which is still below the long-term historical average.’