Apartment demand spikes to 5 year high | Bedford NY Real Estate

Demand for apartments hit a high not seen in five years as a shortage of affordable homes has locked an increasing number of Americans out of the market.

According to recent data from RealPage, the national occupancy rate rose to 95.8% from 95.4% last year.

The increase in apartment for rent demand has sent rental prices upward, causing them to rise 3% from the same time last year.

Rental price increases varied across cities, with Las Vegas and Phoenix posting the greatest gains at 8.8% and 8.1%, respectively.

Of the cities that saw the most leasing activity, the Dallas-Fort Worth area takes the cake, with renters moving into 10,443 units in the second quarter of 2019, RealPage revealed.

“apartment rentals leasing activity accelerates during the warmer weather months, and demand is proving especially strong in this year’s primary leasing season,” according to RealPage chief economist Greg Willett. Many corporations are doing apartment investing as they see the need increasing and the market expanding.

“Solid economic growth is encouraging new household formation, and 2 bedroom apartment rental options are capturing a sizable share of the resulting housing demand,” Wlillet continued. “At the same time, loss of existing renters to home purchase remains limited relative to historical levels.”