Thanks to continually growing rental demand, an increasing occupancy rate and a limited supply of available units, MPF Research reports the apartment sector saw considerable growth in terms of revenue during the first three months of 2012.
The research firm’s first quarter report indicates overall revenue growth across the industry rose 1.1 percent from the previous period. Also, occupancies increased mildly quarter-to-quarter, while effective rents for new lease contracts hiked nearly 5 percent.
“An improving economy and still-limited loss of renters to home purchase are helping spur apartment demand,” said MPF Research vice president Greg Willett. “At the same time, deliveries remain very limited by historical standards.”
In terms of specific areas of the country, the Bay Area and Boston continued to lead the nation in rent growth. San Jose and San Francisco posted rent growth of at least 11 percent on a quarterly basis, while Beantown experienced a gain of 8.1 percent.
February saw a substantial increase in rent growth, another apartment research firm notes. According to Axiometrics, the month posted the largest gain in rents since June of last year. Property managers may be able to continue to boosting rents as the year progresses and demand remains strong.