Axiometrics Inc., a provider of data and analysis on the apartment market, notes in its latest research that effective rents (rent net of concessions) and occupancy declined slightly in October, typical for the market as it heads into the fourth quarter. Nationally, effective rents declined 0.28% between September and October, similar to the 0.21% decline in October of 2010 but far ahead of the -0.73% and -0.63% growth rates in October of 2009 and 2008.
The national occupancy rate also declined slightly, from 94.07% in September to 93.83% in October. This trend is also seasonal and similar to the decline in October of 2010. Overall, occupancy is up 0.71% year-to-date.
"The market typically sees negative growth for effective rent and occupancy in the fourth quarter, and this year the rates are likely to be negative again, though much milder than for the average fourth quarter," said Jay Denton, vice president of research for Axiometrics. "Year-to-date growth has slowed somewhat from our last forecast. We continue to expect a strong apartment market for 2012, but perhaps not as robust as previously forecasted." Read the full story.