Tuesday, December 17, 2013

Axiometrics & REIS: 2014 Rents to Grow Despite Construction Boom

Who will win the battle of the apartment research firms in forecasting the average increase in U.S. rents?

Axiometrics predicts average U.S. rents will increase 3.1%, about the same as this year.  Reis says it will be closer to 3.3%.

A USA Today report quotes Axiometrics' VP of Research Jay Denton, saying:
  • Rents have soared 43% in San Francisco since 2009, including an 8% jump this year. San Francisco is forecast to have a 5.1% jump given strong demand and limited new supply.
  • Seattle, which posted a 6.5% increase in 2013 will see increases of 4.4% next year.
  • Austin, which rose 5.2% this year, will see an increase of 3.7%
Institutionals Developing Exit Strategies?
Meanwhile, Multifamily Executive reported that Victor Calanog, Reis' vice president of research & economics. Recently noted that some large investors are now considering exit strategies, such as the Carlyle Group, which signaled its intent to sell part of its $2.3 billion apartment portfolio in a recent conference call amid fears of growing supply.

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