Property Management – West Hills- Quarterly Growth
Quarterly Apartment Rent Growth Hits 14-Year High
During the first three months of 2014, the U.S. apartment market logged a surprisingly good performance considering the severe winter weather experienced by most of the country. As the weather turned warm during the second quarter, the industry wondered if that momentum could be continued.
According to just-released data from MPF Research, the U.S. apartment market had a stellar performance for the second quarter of 2014.
Apartment owners and operators continue to have strong pricing power as quarterly rent growth for new leases in the 100 largest U.S. apartment markets reached a 14-year high, increasing 1.9 percent during the second quarter of 2014. Monthly rents across the nation now average $1,153.
| Quarterly Rent Growth Leaders for Q2 2014 |
||
| Rank | Metro | Quarterly Rent Growth |
| 1 | San Jose | 4.4% |
| 2 | Denver-Boulder | 3.7% |
| 3 | San Francisco | 3.2% |
| 4 | Chicago | 3.1% |
| 5 | Oakland | 3.0% |
| 6 | Atlanta | 2.8% |
| 7 (Tie) | Boston | 2.4% |
| 7 (Tie) | Nashville | 2.4% |
| 9 (Tie) | Charlotte | 2.3% |
| 9 (Tie) | Fort Worth | 2.3% |
| 9 (Tie) | Portland | 2.3% |
| 12 (Tie) | Dallas | 2.2% |
| 12 (Tie) | Houston | 2.2% |
| 14 (Tie) | Providence | 2.1% |
| 14 (Tie) | Los Angeles | 2.1% |
Midwest and Northeast Metros Rebound
In metros across the Midwest and Northeast, the extreme winter weather sharply curtailed rent growth. But most of those metros, such as Chicago, Boston and Providence saw big rent comebacks and notable price increases as the weather warmed.
Annual Rent Growth and Occupancy Rates Continue to Impress
The annual rent growth pace came in at 3.5 percent, continuing an upward trend over the past two quarters. Apartment occupancy across the nation’s 100 largest markets registered at 95.6 percent as of the second quarter. We’ll take a deeper dive into these numbers next week.
Apartment Market Outlook for the Rest of the Year
Typically, the second and third quarters are when the U.S. apartment market sees the best results. The third quarter 2014 should continue some of the momentum from the second quarter. However, the apartment market’s performance could cool a bit around the end of 2014, according to MPF Research.
“Reflecting normal seasonality, during the fourth quarter, there’s a tendency to give back part of the gains realized earlier,” said MPF Research vice president Greg Willett. “We’ll be especially vulnerable to that pattern this year, given the large block of product scheduled for completion right at the end of the year.”
However, according to Willett, “the performance seen during the first half of 2014 has been so strong that the market is now on track to realize revenue growth that’s well above the level that generally was anticipated coming into the year.”
Carnahan Property Management services Woodland Hills,West Hills, Calabasas, Canoga Park, Tarzana, Reseda, Topanga, Encino, Northridge, Van Nuys,North Hills,Chatsworth, Sherman Oaks, Studio City, North Hollywood, West Hollywood, San Fernando Valley, Granada Hills, Mission Hills, Simi Valley, West Lake Village, Agoura,Toluca Lake, Valley Village, Burbank. Call us at (818) 884-1500 and check if we can service your area.
