Demand for Apartment Soars, Rents Constrained

Demand for Apartment Soars, Rents Constrained

Apartment vacancies fell by 10 basis points in the third quarter to 4.2 percent, according to a preliminary look of the ReisReports third-quarter market report for the apartment, office, and retail sectors. Asking rents increased by 0.9 percent in the third quarter. But the high demand won't automatically mean rent increases.

“Despite the persistent strength of the apartment market recovery, rent growth is being held in check by a still-weak recovery in the economy and the labor market,” according to ReisReports. “Too few jobs, many of dubious quality, and too little income growth are constraining landlords’ ability to raise rents.”

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