NEW YORK ( CNBC) --The still faltering housing recovery, tight credit, lackluster employment growth and overall weak consumer confidence has kept demand for apartments high, despite historic housing affordability. That, plus a shortage of supply, means rents are going higher, increasing at their fastest pace since the fall of 2007, according to Reis Inc., which expects rent growth to accelerate even more as vacancies tighten. How tight are supplies? Less than five percent of the national apartment supply was vacant this past spring, according to Reis. That's only the third time that's happened in over thirty years. "The target renter demographic (younger Americans) has seen what's happened in home buying, and the ease of just writing a monthly check is compelling," says analyst Alexander Goldfarb at Sandler O'Neill.
By Diana Olick, CNBC Real Estate Reporter
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