A survey by Sunrise Management & Consulting shows average rental rates throughout the Northeast to be at or above 2008 levels, showing marked improvement since the economic downturn.
These findings are driven by rising demand for rentals amid constrained inventory throughout the region.
Specifically, the study showed New York generally has recovered from the downturn: (The report does not include New York City):
Most of New York has had slow steady growth throughout downturn.
Hudson Valley and Capital Region lead with good growth over Fall 2010.
Southern Tier has recovered to levels of Fall 2008.
Western Region flat throughout downturn, down $6.06 from Fall 2010.
New England results are mixed:
Connecticut, New Hampshire and Maine have recovered to Fall 2008 levels.
Massachusetts’ Eastern Region has seen steady growth, while the Western Region is flat compared to Fall 2008.
Vermont has seen steady growth throughout downturn.
Rhode Island has been trending down over 4 periods, down -$74.31 in average rent from Fall 2010.
The sluggish economic recovery, high unemployment, and difficulty in funding new home purchases are keeping demand for multifamily rentals rising in the surveyed markets. With the single-family home market still depressed, people are looking for the economies and flexibility of renting.
“Another factor on rental growth found in several markets was that of unsold condo developments being converted to high-end rental inventory, driving significant rental rate increases,” said Jesse Holland, Sunrise Management & Consulting president. “Developers found it easier to rent than sell, and with funding difficulties and economic conditions discouraging home purchases, families found it conducive to rent at the high end.”
The Sunrise Multifamily Rental Market Report includes the entire Northeast except New York City. The states surveyed and reported on include Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont. The report details average asking rents by unit mix and by square footage, and tracks historical trends on a county, regional and state basis. Sunrise Management & Consulting will prepare customized reports to meet any user’s specific needs. A free report can be found at www.sunrisemc.com Information on customized reports can be obtained by contacting Sunrise at 518-782-0200.
Sunrise is the creator of the The Property Gauge„¢, a real estate research and analysis service specializing in accurate up-to-date information on multifamily markets throughout the United States and the Property Coach„¢ system for maximizing property investments. Headquartered in Albany, NY, Sunrise Management & Consulting AMO is an innovative property management company providing property management services, market research, and consulting to property owners, investors and homeowner associations throughout the United States. For information about Sunrise find us at www.sunrisemc.com
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