Rents Rise Fastest in Class-B Submarkets

February 21, 2017

Rents Rise Fastest in Class-B Submarkets

February 21, 2017 | by Bendix Anderson | National Real Estate Investor 

Apartment rents are growing most quickly in working-class, suburban submarkets that apartment developers have avoided.

“With a handful of exceptions, the neighborhoods posting the strongest rent growth don’t have much ongoing construction,” says Greg Willett, chief economist for Real Page and MPF Research. “These are suburban areas.” They are also often working-class areas with older, less-expensive housing.

In contrast, rents are growing much more slowly in the urban, core markets where the rents are already high. “The heavily-supplied, urban cores have seen the weakest rent growth,” says John Affleck, international economist for CoStar Group. “The high-income tenants in these areas can consider home ownership, and can play off the amply new product one against the other for the best deals.”

Read Full Article Here

Print Friendly, PDF & Email
Go Back
Thomas E. Burns, III
July 29, 2015
February 22, 2016

I subscribe to Blue Vault to keep up with the sponsors and their wholesalers! The analysis keeps me up to date with the various portfolios and the way they are managed, including the differences between them.