Equity Residential (EQR +0.2%) reports very strong demand, with New York City and San Francisco better than expected; meanwhile Orange County, San Diego, and Seattle are weaker than expected, according to EQR's presentation at Nareit Reitweek conference.
The apartment rental REIT says markets running as expected include Boston, Washington, DC, and Los Angeles, where EQR has been able to maintain high occupancy at same time as raising rates, though not at "robust rates."
Rents are up 4.5% on renewed leases, via Hoya Capital tweet.
EQR sees new supply peaking in 2018, then dropping some next year, though "we're not completely out of the woods."
Main constraint on supply is construction costs, not developmental lending. Banks relative cautious in their advance rates. Over time, EQR sees some abatement in supply as lending costs increase.
Previously: Equity Residential guides to higher Q2 FFO (April 25)
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