Demand for 47,107 apartments registered across the country’s 100 largest metros during the third quarter. That figure was down from the demand totals seen in the second quarter or in 2012’s third quarter, primarily reflecting somewhat limited product availability. “With occupancy so tight in the existing inventory, demand can’t move meaningfully above the completion volume,” said Willett. Properties totaling 44,799 units were finished during the third quarter.Considerably more apartment product will become available during the next few months, according to the MPF Research count. The firm shows properties totaling about 70,000 units scheduled to wrap-up construction during the fourth quarter, compared to completions that have averaged 36,000 units per quarter so far in 2013. Total ongoing construction across the nation’s 100 largest metros stands at 308,953 units. The ongoing construction pace has held at just over 300,000 units since the beginning of 2013. Among large individual metros, Oakland moved into the #1 position on the list of the country’s annual rent growth leaders as of the third quarter. Pricing for new leases grew 7.9 percent during the past year. Denver-Boulder’s ranking also improved, as the market’s 6.8 percent annual rent growth pace was the second-best nationally. While San Francisco slipped from its previous top spot for annual rent growth, pricing power remained strong with rates up 6.6 percent on an annual basis. The next three positions also went to metros in the red-hot Pacific Northwest region, as rents climbed 5.9 percent in both San Jose and the Seattle-Tacoma area and 5.7 percent in Portland. Miami returned to the list of annual rent growth leaders for the first time in several years during the third quarter, as pricing improved 5.0 percent on an annual basis. The yearly growth pace was 4.8 percent in Houston and 4.2 percent in both Austin and Nashville.
|Annual Rent Growth Leaders|
|4 (tie)||San Jose||5.9%|
“Improving performances in southern California are one of the key regional storylines for the quarter,” according to Willett. “Annual rent growth in much of the area now is above the national norm, after these markets ranked as middle-of-the-pack performers a year ago and significant laggards two years ago.”About RealPage Located in Carrollton, Texas, a suburb of Dallas, RealPage provides on-demand (also referred to as “Software-as-a-Service” or “SaaS”) products and services to apartment communities and single family rentals across the United States. Its on-demand product lines include OneSite® property management systems that automate the leasing, renting, management and accounting of conventional, affordable, tax credit, student living, senior living and military housing properties; LeaseStar™ multichannel managed marketing that enables owners to originate, syndicate, manage and capture leads more effectively and at less overall cost; YieldStar® asset optimization systems that enable owners and managers to optimize rents to achieve the overall highest yield, or combination of rent and occupancy, at each property; Velocity™ billing and utility management services that increase collections and reduce delinquencies; LeasingDesk® risk mitigation systems that are designed to reduce a community’s exposure to risk and liability; OpsTechnology® spend management systems that help owners manage and control operating expenses; and Compliance Depot™ vendor management and qualification services to assist a community in managing its compliance vendor program. Supporting this family of SaaS products is a suite of shared cloud services including electronic payments, document management, decision support and learning. RealPage’s MyNewPlace® subsidiary is one of the largest lead generation apartment and home rental websites, offering apartment owners and managers qualified, prospective residents through subscription, pay-per-lead and LeaseMatch TM pay-per-lease programs. Through its Propertyware subsidiary, RealPage also provides software and services to single-family rentals and low density, centrally-managed multifamily housing. For more information, call 1-87-REALPAGE or visit www.realpage.com.