Apartment rents continue to grow in US; worst may be over

Submitted by Malini Ranade on Wed, 04/07/2010 - 03:37.



Apartment rents continue to grow in US; worst may be overIf the trend seen in the apartment rent segment is anything to go by, then the real estate is out of the recession. This segment has seen a positive growth during the first quarter this year.

The rise in rents has come after five months of decline and that is the good news in the growth story. It also means that the apartment vacancy rate, which was at the highest level of 8 per cent, has also come down.

This information was revealed by a research firm, Reis Inc. In the 70 top US markets which were studied by it, 60 showed an increase.

Most of the increase was visible in Miami followed by Seattle and New York. This is unlike what happened last year when all the big cities showed a decline in the rental segment.

The Reis report showed that the rents increased by 1.6 per cent in Miami which was followed by New York, where it grew by 0.9 per cent.

Talking about this, the director of Reis, Victor Calanog said that most of the markets have bottomed out and are moving towards recovery