The Rental Housing Wave

Posted November 3, 2011

In Apartments, California, Columbus, Los Angeles, Ohio, Residential

The Great Recession has produced an increase of 1.4 million new renters this year, which is a 4% rise in the last year according to Mark Heschmeyer at CoStar News. And again, since construction financing has been in the toilet from second quarter 2008 until first quarter 2011, there is little in the way of new product coming online – analogous with what I’ve been saying about retail over the last many posts.

There’s a big increase in the planning stages or just breaking ground with 67% of respondents of the Quarterly Survey of Apartment Market Conditions reporting significant activity. 20% said developers were breaking ground at a rapid rate and another 47% reported activity in preconstruction phases of buying land, looking for lenders, and approval activities such as zoning planning and permits, but not much actual construction activity yet.

Full-year 2011 national average asking rent growth will remain strong and on track to reach 4%, with effective rents perhaps reaching 5%, or even 6% annualized growth, Fannie Mae said.

CoStar News – Article – The Coming Rental Housing Wave

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