MPF Research reports that on the heels of one of its best years in recent history, the U.S. apartment market continued to record impressive demand and rent growth in 1st quarter 2015. Annual rent growth is at 4.6 percent. Occupancy in the top 100 US Markets is 95.4 percent.
New Unit Absorption
In the first three months of the year, absorption of new units has topped deliveries. Over the past 12 months, supply currently lags absorption, with supply coming in at 242,479 units while absorption is at 276,513 units.
Lease Renewal Rates
Lease renewals hit a 10-year high in February with renewals at 54.5 percent.
New Construction - Top 100 Markets
There are still a lot of new units under construction. For the first quarter of 2015, there are 419,555 units under construction in the top 100 markets, which is about 20,000 units than it has been for the previous eight quarters.
2016 Occupancy Forecast
Occupancy is expected to cool only slightly through early 2016.
12-Month Rent Growth Forecast
Market rent growth is expected to slow only slightly. Annual rent growth for the next 12 months is forecast at 3.6 to 3.9 percent.