This was an eyeopener for us in the apartment building investing business: Large US cities with falling rents. The table is from TransUnion, I wonder what their sampling methodology is- And I wonder how that breaks out by asset class.
Yes of course there are cities with rising rents but Denver rents down almost 9% in a year? In 2011? Even Chicago down almost 5%? And DC the apartment hotbed has falling rents? Supposedly their data comes from managers supplying info for tenant screening and if that’s the case it seems like there are some serious concessions being given.
Don’t blame me, I’m just the messenger- See the Whole MFE article here: TransUnion Lists 10 Major Metro Rental Changes in Q1
One thought on “Stealth concessions in large US cities = falling apartment building rents? See the list via MFE Magazine”
But then there’s this from Hassam Nadji of Marcus & Millichap writing in GlobeSt.com:
“Apartments once again led the way with vacancies falling 30 basis points in the first quarter to just below 5 percent; rent growth gained further momentum after a strong 2011. Apartments remain supported by the same seemingly unstoppable forces that propelled their recovery right out of the gate in 2010: The release of pent up demand with young adults de-bundling from family and roommates to rent their own units, low levels of first-time home buying and low levels of new supply.” http://bit.ly/J0ZCGS