us apartment sector proves robust
News Posted On: 24 November 2011
The market for apartments in the US is proving to be particularly robust with vacancy rates expected to remain at just 5.5% during 2012. With fewer Americans buying homes and more choosing to rent, the vacancy rate has fallen from 7.4% in 2009 and is now heading towards the 5.3% rate seen before the economic downturn.
Good rental growth and increasing demand has attracted more investors to the buy to let sector, and prices in some apartment buildings are reaching record highs.
Experts consider the multi-family housing market to have, not only recovered but returned to growth, and its anticipated the vacancy rate will eventually fall to 5.1% after 2012 as the jobs market becomes more robust.
The availability of jobs is one of the main factors affecting demand for apartments, and of course the fact that home ownership has been steadily falling from its peak of 69% in 2004.
If this trend continues it's likely to increase apartment demand even further, and revenue for landlords is expected to rise by 3% in 2012. This following a predicted rise of 4.1% this year.
However rental values vary widely; some regions have seen values remain flat, while others have seen them increase by as much as 15%.
The top performing markets over the next couple of years are expected to be San Francisco, Denver, Seattle, San Jose and Austin, with growth fuelled by their technology sectors. However population growth is expected to fuel rental growth in Phoenix, despite its being one of the hardest hit markets in the country.
View America property for sale
Written by Les Calvert
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