According to New York real-estate research group Reis, Inc., it may be time for landlords to exhale, as they see the first quarterly improvement in vacancies in three years, and the first uptick in rents in two.
Experts attribute the dip in vacancy rates to private sector job growth, which in turn bolstered consumer confidence in jobs.
Second quarter, 2010 saw a significant upsurge in lease-signings, with a smaller but corresponding rise in rents, a possible glimmer that the renters’ market advantage may have hit the top of the bell curve.
While lease signing increases are typically high for second quarter, the absorption rates are the highest in a decade. And, 70% of the increase came from empty units in exisitng buildings, signaling that renters who were hunkered down with relatives are now getting out of the house and going back out on their own, according to Reis. The trend is further supported by a lack of financing for home purchases and new apartment construction.
Reis reports that major cities hit with heavy unemployment like Boston and Seattle are making a comeback; however areas plagued by foreclosures, like Phoenix and Las Vegas, are still seeing stagnant rents.
A number of local surveys also report increased leasing activity, and a decline in rent concession packages from landlords as demand improves.
What’s happening in your area?
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