Equity Residential officers recently indicated during a conference call that they believe the current level of demand in the rental housing market will support further rent growth, GlobeSt.com reports. While some residents might depart in search of lower-priced housing, they expect the overall level of demand to bring in new tenants quickly.
How long the window of opportunity remains open may depend on local factors. The REIT found that Los Angeles, San Diego, Seattle and Washington, D.C. were all somewhat resistant to price increases, showing a drop in occupancy. Markets including Boston, New York City and San Francisco, while they displayed an initial increase in vacancies, are rebounding.
The REIT expects this momentum to be exhibited in other markets as well, noting it may take a bit more time for some to rebound than others. Owners and property management companies should act soon in order to bolster rates, before construction and other activities can change the situation.