According to the US Census Bureau, apartment absorption, which is the rate at which new units are rented out, is now at the highest level in 3 years.
The report stated that apartment construction has reached a 20-year high in 2017, and remains elevated throughout 2018.
Many experts expected that once Millennials began to enter into the first-time buyers market, the surging demand and strong occupancy for the nation’s apartments would abate. This appears to not be the case. The word ‘unexpected’ seems to defy the prognostications provided by most groups which did not foresee the present strong demand for apartments across the country.
While the strong economy appears to be giving Millennials the opportunity to enter into the real estate market for the first time, it did not have as much of an effect upon the rental market as expected.
Again, one of the reasons for the strong real estate market has to do with the constricted inventory that continues to impact the metropolitan areas across the nation. Some metro areas are showing increased inventory, but overall inventory remains tight.
According to a story on CNBC, both the national average asking rent and effective rent increased 4.9% and 4.6%, respectively, year-over-year from the fourth quarter of 2017. What is even more unusual is that the apartment vacancy rate remained unchanged despite the completion of many new units.
What wasn’t expected was that the tax reform passed in 2017 that doubled the standard deduction, actually reduced the incentive to buy a home. This was another aspect of how the rental market has remained unexpectedly strong.
Counsellors Title provides title insurance, property title searches, on- and off-site closings and escrow services for all 21 counties in the state of New Jersey. Counsellors Title Agency also features its own Attorney Settlement Assistance Program(TM) (ASAP), which is an individual resource customized to fit the needs specifically of real estate attorneys, including documentation, preparation, disbursement of funds, attendance at closing, HUD preparation or post-closing matters. Headquartered at 504 Hooper Avenue, Toms River, NJ 08753, Counsellors Title maintains an impeccable customer relations standard with hundreds of attorneys, loan officers and REALTORS(R)
Counsellors Title provides title insurance, property title searches, on- and off-site closings and escrow services for all 21 counties in the state of New Jersey. Counsellors Title Agency also features its own Attorney Settlement Assistance Program(TM) (ASAP), which is an individual resource customized to fit the needs specifically of real estate attorneys, including documentation, preparation, disbursement of funds, attendance at closing, HUD preparation or post-closing matters. Headquartered at 504 Hooper Avenue, Toms River, NJ 08753, Counsellors Title maintains an impeccable customer relations standard with hundreds of attorneys, loan officers and REALTORS(R)
Counsellors Title provides title insurance, property title searches, on- and off-site closings and escrow services for all 21 counties in the state of New Jersey. Counsellors Title Agency also features its own Attorney Settlement Assistance Program(TM) (ASAP), which is an individual resource customized to fit the needs specifically of real estate attorneys, including documentation, preparation, disbursement of funds, attendance at closing, HUD preparation or post-closing matters. Headquartered at 504 Hooper Avenue, Toms River, NJ 08753, Counsellors Title maintains an impeccable customer relations standard with hundreds of attorneys, loan officers and REALTORS(R)