Friday, July 6, 2012

Apartment Rents on the Rise

Apartment rents are on the rise and vacancies are becoming scarcer across the United States, reports.  During the second quarter, vacancies were at a new 10-year low and rents jumped more quickly than at any time since before the financial crisis.

The average U.S. vacancy rate was 4.7 percent, the lowest since the last three months of 2001.  Asking rental rates soared to $1,091, the highest increase since the last three months of 2007.  The average effective rent, which excludes incentives designed to lure tenants, rose to $1,041.

The increase in rental rates seems to be the rule across the country, even in smaller areas such as Providence, RI and Knoxville, TN, places you normally would not see as popular.  In fact, no area in the country saw a decline.

The uptick in prices charged for rentals seems to be driven by an increasing number of home seekers who do not want to or are unable to buy a home because of the housing market crash and tight lending conditions.  The lack of new construction also contributes to the current market condition, as well as Generation Y's preference for renting apartments in urban areas rather than moving out to the suburbs.  Generation Y generally doesn't see home ownership as the "American Dream" as their parents or older siblings' generations did.

Looking for an apartment in this increasingly tight rental market?  An apartment locator can help you find a great place that meets all your criteria without the hassle.