Over the last 12 months ending March 2010 the apartment vacancy rate in the Triangle area decreased from 10.3% to 8.6% (1.7%) while rents remained flat. In fact rents have trended up 1% over the last three years. These figures were reported by Karnes Reasearch and the Triangle Apartment Association in their bi-annual market report. This change came as a bit of a surprise to some who thought vacancies would remain high until the job market improved. Nonetheless, our apartment market continues to prove that it is resilient.
It seems several factors contributed to this vacancy decrease. It's easy to see that our population continues to grow, less people are buying homes and many people are being forced out of homes. However, the most signifcant factor at play is the relative lack of new apartments being built.
The level of apartments under construction has consistently fallen over the last 18 months to a point where, even in a challenging economic environment, demand for apartment housing in the Triangle is outpacing supply. This is great news for apartment owners. Imagine what might happen when we do see an improvement in the job market.
1 comment:
Another good reason to get into the rental business
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