Tight Supply & Rents High

A Reis report: Leasing activity showed little signs of slowing during the first quarter, partly because of the relatively mild winter in the Northeast. Net absorption, or the net change in occupied stock, remains strong with 36,488 units leasing up.

Tight supply conditions with only 7,342 apartment units coming online in the first quarter are helping the performance of apartment properties around the nation. National asking and effective rents remain strong, with effective rents (asking rents net of concessions) increasing at its fastest rate since end-2007.

Asking rents grew by 0.5% and effective increased by 0.9% in the first quarter. Reis expects effective rent growth to accelerate even more as vacancies tighten within the 4% band; with availability so scarce, landlords have little incentive to concessions.

Charlotte rent is increasing about 4% per year or more!!!.


Q1 2012 Winners                                                                      Q1 2012 Losers

                            Metro Area Rent % Change                                                Metro Area Rent % Change

Tulsa                               $596 1.1%                                             Fairfield County    $1,836 -0.4%

Charlotte                         $825 1.0%                                            N. New Jersey      $1,550 0.0%

Fort Worth                      $743 1.0%                                            Greensboro/Winston-Salem  $674 0.0%

Oakland-East Bay           $1,391 1.0%                                         Birmingham           $730 0.0%

Charleston                       $793 0.9%                                            New York            $2,953 0.0%

NOTE: At what sales price of a home could you afford and have a FIXED monthly mortgage of $825 in Charlotte, NC??