The Near Future of the U.S. Apartment Market

The U.S. apartment market gained a bigger spark than most anticipated in the third quarter, a needed boost as the market approaches the seasonally slow year-end period. Annual rent growth of 3 percent for the quarter marked a shift from slowing price increases since the end of 2015. Strong leasing activity and tightening occupancy were the big drivers notching up growth from 2.5 percent in the second quarter. Occupancy was up more than half of a percentage point to 95.8 percent compared to a year ago. The pace is on par with the 2.5-3 percent rent growth RealPage Chief Economist Greg Willett thought the industry would achieve at the start of 2018. But despite the third quarter surge – fueled by more than 6 percent rent growth in Las Vegas, Orlando and Phoenix – the run to the 2018 finish line is poised to downshift. “Still, there doesn’t seem to be a pronounced shift in the big-picture story,” Willett said in the company’s quarterly report. “We are about to move into the period of seasonally slow apartment leasing that comes with the cold weather months. Demand will trail completions just ahead, making it tough for the rent growth pace to gain additional traction.” Willett, a leading industry voice on rental housing market fundamentals, and RealPage analysts will go deeper into what lies ahead nationally and within leading markets by hosting a series of fall webcasts starting in October. The webcasts feature market data for asset optimization aimed at institutional operators, lenders, developers, investors, analysts, brokers, owner/operators and property managers. In addition, Willett also will present on Dallas/Fort Worth market performance Oct. 17 at Marcus & Millichap Multifamily Forum in Dallas. Here’s what is on tap for the webcast series this fall: Fall U.S. Market Update October 23 Industry analyst Jay Parsons joins for a review of where the apartment industry stands with a look at metrics by...