Apartment rents forecasted to rise during 2015
Reis has reported that U.S. apartment vacancies have risen for the first time in five years, but rent growth has not subsided, nor will it subside during 2015, according to a 2015 multifamily forecast from Pierce-Eislen. It has prophesized that effective rent growth during 2015 will be 4.5 percent in class A and B+ apartment communities, while rising an even more vigorous 5.1 percent in class B and C apartment complexes.
The news is even better in markets such as Atlanta, Denver, Miami, Portland, San Francisco and Seattle, where rental rates are expected to swell by 7.5 percent to 9 percent. This comes on the heels of rental rate growth that is estimated to finish 2014 at 5.9 percent. Rental rates keep rising despite a national apartment vacancy rate that inched up to 4.2 percent during the third quarter in 79 large U.S. markets tracked by Reis. Despite the modest increase — the first in “a virtually unprecedented run” of five years — the apartm