Effective rent growth of 0.1 percent for the quarter was only middle of the pack, but annual rent growth of 1.8 percent was decidedly better.
It should be noted that office employment growth had a consistently higher correlation
with effective rent growth than with occupancy growth.
We
expect effective rent growth to turn positive in the second half of 2011 and increase moderately in 2012 - 13 before accelerating strongly in 2014 - 15.
The Jacksonville metro area experienced 5.3 percent annual
effective rent growth in 2017, putting it in fifth place among major markets in that metric, the company reported.
While
average effective rent growth will hit a recent low of 2.3 % this year, it is expected to rise to 3.2 % in 2018 and 4.1 % in 2019 before moderating back to 3.2 % in 2020 and 2.6 % in 2021.
San Francisco, New York, Houston, and San Jose, California, all
saw effective rent growth rise more than a full percentage point.
Some of the outlier markets where office employment growth has been significantly higher than
effective rent growth include Palm Beach, Fla., Fort Lauderdale, Fla., San Antonio, Texas, San Bernardino / Riverside, Calif., Orlando, Fla. and Louisville, Ky., where office employment growth rates (year - over-year) have averaged between 3.0 percent and 5.0 percent over the last three quarters.
February's
effective rent growth rate of 2.8 percent, while still positive, was almost three quarters of a point lower than 3.53 percent reported in February 2013.
For example, the year -
over-year effective rent growths at the metro level range from a high of 7.3 percent in San Francisco to a low of -0.3 percent in Fort Lauderdale, Fla..
Similar to the idea
behind effective rent growth, the effective rent / bed is calculated by subtracting concessions from the asking rent per bed.
Month -
over-month effective rent growth, which has been negative in December for at least the past nine years, was the second highest in that period at -0.2 %.
Meanwhile, year - to -
date effective rent growth in 2017 avoided the stigma of being the lowest in the post-recession period — by 7 bps.
Annual
effective rent growth for off - campus beds moderated to 1.8 percent, the student housing surveys found, but remained in line with historical averages.
In the face of moderating job growth... despite the massive amount of supply identified for delivery in 2017... even though several large metros are expected to remain in negative rent - growth territory... Axiometrics apartment market data is resulting in a forecast that shows annual
effective rent growth in 2017 matching the long - term average.
Annual effective rent growth averaged 2.7 % for properties located in new - supply markets, compared to 1.6 % in markets without new supply.
That sentiment is supported by industry data as seven of the top 10 markets for
effective rent growth were in California, according to Reis.
Neither asking nor
effective rent growth has topped 0.2 percent in any of the past five quarters.
Asking and
effective rent growth was 0.2 percent and 0.1 percent, respectively, in the fourth quarter.
The Dallas — based research firm says annual
effective rent growth has been moderating at the national level for the past two years, though many metropolitan statistical areas (MSAs) in California, Florida and Texas continue generating rent growth of more than 5 percent.
Annual
effective rent growth has increased with new construction.
Effective rent growth is still positive for the quarter, but falls somewhere in the middle to lower half of national rankings (Washington, at 0.5 percent, is at number 25 out of 82; suburban Virginia, at 0.4 percent, is at number 31.
«Annual
effective rent growth has been steady at 2 percent, but hundreds of properties saw effective rent growth of 3 percent or greater,» Gunn notes.
The same markets are on top of the rankings for year - over-year changes for both asking and
effective rent growth.
Annual
effective rent growth is also compressing slightly at 1.6 %.
Prelease is averaging 64 %, up 330 basis points (bps) from last January, and annual
effective rent growth is averaging 2.6 %.
Analyze each market's and submarket's supply and demand based on rental housing stock, absorption rate, occupancy and
effective rent growth.
Compare overall company ranking;
effective rent growth momentum; effective rent growth, vacancy and concesssion trends by quarter and year.
Assess supply and demand based on rental housing stock, absorption rate, occupancy and
effective rent growth.
As residents continue to rebuild from the devastation of Hurricane Harvey in late August, Houston's annual
effective rent growth was 4.2 % in October, some 138 bps higher than October's 2.8 % and a whopping 797 - bps rise from the -3.8 % of November 2016.
While annual
effective rent growth was remarkably steady in 2017, the national apartment market ended the year on a high note, increasing to 2.5 % in December.
Even so,
effective rent growth will be limited due to concessions that may be necessary to compete with shadow space for renters.
As of November 2012, the market's occupancy rate was 93.1 percent, and its year - to - date
effective rent growth was 6.5 percent.
As of November 2012, its occupancy rate was 94.9 percent, and its year - to - date
effective rent growth was 7.4 percent, according to Axiometrics.