Multifamily trends from the first quarter of 2014 touch on insight into the renter demographic, renter trends, vacancy rates, median asking rent, and housing inventory.
Renter Demographic
A ForRent.com and Homes.com renter survey revealed that although there was an increase in home rental interest, apartment rentals were most popular. Of 2,200 consumers surveyed, 45% of renters were single and 22% were married with no children. Similar to baby boomers, millennials, or those born from 1981-1996, prioritized convenience, location, and safety over amenities. Millennials made up approximately 42% of the Q1 2014 renter demographic.
Renter Trends
The top 5 regions searched in Q1 2014 included the South Atlantic (21.5%), Pacific (17.6%), East North Central (15.9%), Mid-Atlantic (11.2%), and West South Central (9.9%).
In a Landmark renter survey, additional desired amenities include the “million-dollar view,” which is relevant to the location, high-speed internet (93%), outdoor space, such as a patio or balcony (92%), washer/dryer in unit or hookups (88%), cable TV (70%), community amenities, such as a fitness room (84%), package drop-off storage (78%), community internet access (70%), and a 24-hour doorman (15%).
Vacancy Rates
The U.S. Census Bureau reports in the first quarter of 2014, national vacancy rates were at 8.3% for rental housing, a decrease of 0.3% (+/- 0.4) from Q1 of 2013. This is still among the highest rate in the last 40 years. Similar to Q1 of 2013, the highest rental vacancy rates remained in the South (10.3%) and lowest in the West (6.4%). The YOY rates for the Northeast (7.0%), South, and West were not statistically different. The Midwest vacancy rate was lower by 1%.
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First quarter 2014 vacancy rates: Northeast (7.0%), Midwest (8.5%), South (10.3%), and West (6.4%).
Median Asking Rent
The median asking rent was $766 in Q1 of 2014, a year-over-year (YOY) increase of $18. The highest region of median increase was from the Northeast ($1043), with a YOY increase of $147. Year-over-year, the West ($886) increased by $32, South ($709) by $44, and Midwest ($684) by $69. (Source: U.S. Census Bureau)
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Year-over-year increase in median asking rent across all regions.
Housing Inventory
Of all housing units in the US for the first quarter of 2014, approximately 86.2% of all housing units were occupied, with 30.3% being renter-occupied units. Vacant units made up 13.8% of housing inventory. Out of these, 5.7% were held off market, 3.4% were seasonal, 2.8% for rent, 1.1% for sale, and 0.8% rented/sold but vacant.
More trends to come. Check back on the Apartment Living blog for updates!
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