A comeback in for-sale housing has not derailed the very strong performances posted over the past few years in the nation’s apartment sector, according to MPF Research, an industry-leading market intelligence division of RealPage, Inc. (NASDAQ: RP). Instead, second quarter apartment demand surged relative to last year’s level, and the annual rent growth pace accelerated once more, after having cooled a bit earlier. MPF Research analysts highlight the nation’s latest apartment demand and rent growth statistics as well as other key performance indicators in a discussion found at http://goo.gl/xa46e.
Demand for 88,524 apartments registered across the country’s 100 biggest markets in second quarter. That absorption tally, up 69 percent from the second quarter 2012 volume, well surpassed the 33,291 apartments in communities finished during the April-June time frame. “Some of the pent-up apartment demand from young adults who have been living at home with mom and dad or in other combined-household situations is being unleashed,” according to MPF Research vice president Greg Willett. “The number of new apartment renters entering the market exceeds those exiting to make home purchases.”
Demand running ahead of deliveries in second quarter took the national apartment occupancy rate to 95.3 percent, up from 94.9 percent in first quarter 2013 and 95.2 percent as of second quarter 2012. “While a slight uptick in occupancy during the second quarter is good news, the shifts recorded over the course of the past couple of years in large part reflect normal seasonality,” Willett said. “The big-picture story is that the apartment market has been essentially full since the middle of 2011, and that it’s continuing to remain full even as we add a significant number of new rental properties and cycle out some previous apartment residents to home purchase. We’re adding enough new households for all types of housing to experience momentum at the same time.”