US Apartment Market Forecast May 2009
In particular, the NAR/TWR forecast predicts that, despite the ongoing crisis, US average apartment rents will register increases in both 2009 and 2010, continuing the trend registered in 2007 and 2008. In particular, it is predicted that average apartment rents in the United States will increase by 1.5% in 2009 and 2.5% in 2010. In 2007 and 2008, average apartment rents increased by 3.1% and 2.9%, respectively.
Apartment rents in 2009 are predicted to increase despite a significant increase in the national vacancy rate. In particular, the US apartment vacancy rate is predicted to increase from 5.7% in 2008 to 6.8% in 2009, representing an increase of 1.1 percentage point. In 2010 though, the vacancy rate is expected to decrease slightly to 6.7%. The NAR/TWR apartment market forecast May 2009, presents a resilient picture for the US apartment market. However, it should be noted that apartment market behavior varies widely across local markets, as well as across quality segments. So it is not unlikely that some markets will register declines in apartment rents and higher increases in vacancy rates, depending on local demand and supply conditions. Thus, the national outlook presented by NAR/TWR should not be applied to any particular locality. Investors need to evaluate carefully the prospects of the market as they pertain to the particular locality they are targeting or operating.
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