H1 Demand for Rentals ‘Stunningly Strong’
Posted on: July 27, 2010No comments yet
Landlords across the country may be making more money today.
A recent survey showed that demand for apartments and other rental properties significantly increased in the first half of the year. An official with the research firm that conducted the survey even called the growth “stunningly strong.”
According to MPF Research, which is based in Carrollton, Texas, the number of occupied apartments in the 64 largest U.S. markets grew by 215,000 in the January to June period. It was nearly double the units added last year. It is also the biggest increase since 1992, when the firm started its survey of the niche.
The data translates to a 6.6% vacancy rate for June, an improvement from December’s 8.2%. “Overall demand is pretty stunningly strong in the first half,” said Greg Willett, a vice president at MPF Research.
Analysts believe that creation of new jobs is leading to an increased demand for apartments. Based on Labor Department data, employers started to hire around 147,000 new employees monthly in the first half of the year. Statistics also show that jobs for people aged between 20 and 29 years old grew in May and June year-on-year – for the first time since the later part of 2007. People within that age group are crucial tenants for landlords.
Mark Zandi, chief economist of Moody’s Analytics Inc. in West Chester, Pennsylvania, said that while income levels may not be as high as those before the recession, they may have been enough to convince families to stop living with relatives and rent their own apartments.
