Slow, Sustained Recovery Continues
The apartment vacancy rate continued its downward descent 4th Quarter 2010, and rents are coming up, according to industry research specialists Reis, Inc., of New York.
Reis experts have declared 4th Quarter 2009 as the official “bottom” of a dismal market cycle shadowed by high vacancies and leading to an onslaught of renter incentives as apartment owners vied over a shrinking pool of qualified renters.
In contrast, 4th quarter 2010 showed continuing improvement with city vacancies dropping to an average 6.6%, lower than 3rd quarter 2010’s 7.1%, and lower still compared to a year ago when vacancies topped 8%. The news is especially positive because 4th quarters can be the most sluggish.
Effective rents also rose by about 0.5%, according to Reis.
The numbers indicate growing confidence on the part of renters in jobs, and could signal that the excessive housing inventory is steadily being absorbed.
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