Demand For Rentals Surged In Q2, But Not Evenly—Many Luxury Apartments Are Empty
The year’s weak start for apartment demand is over—units are filling up as Q2 marks a surge in rental demand.
“Strong demand pushed occupancy back to the post-recession peak,” says Greg Willett, chief economist at MPF Research, National Real Estate Investor reports. Yet strong demand has failed to close the divide between luxury apartment communities and more affordable Class-B communities.
Affordable apartment communities tend to be fully occupied with long waiting lists while their luxury counterparts rely on offering renters concessions simply to fill units. Vacancy rates are hovering around a low 4%, but this divide threatens to push it up as more luxury apartments hit the market when what people really need is affordable housing. [NREI]