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"Like drinking without the hangover," says an analyst of the sweet spot apartment landlords find...

"Like drinking without the hangover," says an analyst of the sweet spot apartment landlords find themselves in. A survey from REIS finds rents rising smartly, vacancies dwindling, and not a lot of new supply hitting the market. AIV +6.4%, AVB +22.4%, EQR +20.7% YTD.
Comments (4)
  • Tack
    , contributor
    Comments (12835) | Send Message
     
    The housing market is the other shoe of this pair. Stay tuned.
    7 Jul 2011, 12:43 PM Reply Like
  • kmi
    , contributor
    Comments (3985) | Send Message
     
    The data in the upmarket is skewing things. Rents are rising rapidly there pulling the data higher while in the middle and lower ends rents are either not rising or indeed falling.

     

    One thing to notice in the linked article:

     

    " Landlords filled a net 33,000 units in the second quarter, a slowdown from the 45,000 units they filled in the first quarter. "

     

    Fewer units filled but with higher rents.

     

    In my area the same effect is being observed in housing, where median house price is rising but only because of more sales of 1m+ homes versus anything in the middle of the curve.
    7 Jul 2011, 01:16 PM Reply Like
  • kmi
    , contributor
    Comments (3985) | Send Message
     
    And I'll add any markets heavily catering to fixed income seniors and retirees are seeing headwinds against rental increases too, i.e. be wary of products investing in senior/retiree communities since those folks are getting hammered by real inflation.
    7 Jul 2011, 01:22 PM Reply Like
  • Ancient Lake Investments
    , contributor
    Comments (5) | Send Message
     
    People are flocking to the cities for jobs, and walking away from underwater homes to rent an apartment. Therefore we see this sector strengthening by association. The housing sector will not follow suit, unfortunately.
    7 Jul 2011, 03:35 PM Reply Like
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