Thursday, June 21, 2012

Rental Housing a 'Bright Spot'

Rental market activity remains a 'bright spot' for the housing marketing, reported Freddie Mac, while Fannie Mae, predicts 'positive' rent growth-varying by area- for 2012.

"Further increases in rental demand are likely in the coming year as newly formed households postpone homeownership decisions until the economy strengthens and they have accumulated sufficient savings," said Frank Nothaft, vice president and chief economist with Freddie Mac. "Overall apartment market trends may show further vacancy declines and rent gains, with property values improving as well."

Freddie Mac's U.S Economic and Housing Market Outlook for June said an additional 1.5 million households moved into rental housing over the year ending March 2012, a 4 percent increase in a single year! Rental vacancy rates have dropped roughly 2 percentage points of the past two years.

Starts of buildings with five or more apartments have jumped 48 percent in the first five months of this year compared to the same period a year ago, the report said.

After seeing these numbers it is amazing to think of how rental increases vary by area. Now I am going to focus on the Top 10 Cities With The Steepest Rent Hikes


  1. Greenville, S.C. 
    • Annual rent increase: 11.2%
    • Average monthly rent: $669
    • Vacancy rate: 7.7% (9.5% in 2009)
    • Average concession: 4%
  2. Chattanooga, Tenn.
    • Annual increase: 10.4%
    • Average monthly rent: $726
    • Vacancy rate: 4.4% (7.1% in 2009)
    • Average concession: 1%
  3. Savannah, Ga.
    • Annual increase: 8.4%
    • Average monthly rent: $866
    • Vacancy rate: 6.3% (6.7% in 2009)
    • Average concession: 3%
  4. Portland-Beaverton, Ore./Vancouver, Wash.
    • Annual increase: 8.1%
    • Average monthly rent: $875
    • Vacancy rate: 4.7% (6.3% in 2009)
    • Average concession: 2%
  5. San Jose-Sunnyvale-Santa Clara, Calif.
    • Annual increase: 8%
    • Average monthly rent: $1,716
    • Vacancy rate: 3.9% (5.3% in 2009)
    • Average concession: 1%
  6. Nashville-Davidson-Murfreesboro, Tenn.
    • Annual increase: 8%
    • Average monthly rent: $786
    • Vacancy rate: 5.5% (7.9% in 2009)
    • Average concession: 5%
  7. Tacoma, Wash.
    • Annual increase: 8%
    • Average monthly rent: $900
    • Vacancy rate: 6.7% (8.9% in 2009)
    • Average concession: 3%
  8. Denver-Aurora, Colo.
    • Annual increase: 7.5%
    • Average monthly rent: $873
    • Vacancy rate: 5.6% (7.5% in 2009)
    • Average concession: 4%
  9. Washington, D.C./Arlington-Alexandria, Va.
    • Annual increase: 7.4%
    • Average monthly rent: $1,473
    • Vacancy rate: 4.6% (5.7% in 2009)
    • Average concession: 2%
  10. Raleigh-Cary, N.C.
    • Annual increase: 7.4%
    • Average monthly rent: $785
    • Vacancy rate: 6.1% (7.4% in 2009)
    • Average concession: 4%










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