Weaker housing market drives growth in apartment sector

A weaker national housing market continued to benefit the apartment market, according to research by Reis. The apartment vacancy rate was unchanged at 4.8 percent in the fourth quarter 2018, compared with 2017 when it was 4.6 percent, while at year-end 2016 it was 4.2 percent.

Connect Media, citing Reis, noted the asking and effective rent growth was 0.8 percent in the quarter, decelerating from 1.4 percent and 1.3 percent, respectively, last quarter. At $1,440 per unit (market) and $1,370 per unit (effective), the average rents have increased 4.9 percent and 4.6 percent, respectively, from the fourth quarter of 2017.

Metros with the highest vacancy rate increase include Albuquerque, Lexington, Nashville, Charleston and Denver. Metros with the highest net absorption have had some of the highest job growth in 2018: Houston, Dallas, Denver, Seattle, Orlando, Austin and Phoe