Posted April 09, 2015 by RentJungleAccording to a new study published by MFP research, the first quarter of 2015 shows increased demand and growth in major apartment markets across the country. The Dallas-Forth Worth area was the number 1 demand leader, with a net lease of 18,000 apartment units in the past year.
One main contributor to the increased demand for apartments in this market is job growth. Toyota and Liberty Mutual insurance are among large companies moving workers into the Dallas-Fort Worth area, and therefore, these relocated employees need to find housing. More than 34,000 apartment units are currently under construction. The average rent at new apartments in the suburbs is $1,200/month, while in the city the going rate is at $1,700/month.
Although most markets are seeing a rise in apartment demand, only a few major markets are the driving forces behind this significant increase. In addition to Dallas-Forth Worth, these markets include Houston, Washington DC, Los Angeles, Austin, Denver-Boulder, Atlanta, Chicago, Boston, Seattle-Tacoma, San Antonio, Charlotte, Phoenix, Orlando and Raleigh-Durham.
Growth in the market is also lending itself to apartment rate increases. Rent in the Denver-Boulder area jumped the most, at 10.5%, with Oakland and San Francisco close behind at 10.2%.
What types of apartments are filling up the fastest? New lease-ups. The modern design and new amenities are a huge draw. However, for those seeking a mid-price apartment, those are more difficult to come by.
Overall, the growth in the apartment sector is looking like a long-term increase, with no signs of slowing down soon. However, the rate at which new units currently under construction are filled may slow down slightly, according to MFP. The good news if you're on the apartment hunt? You're going to have a lot of options if you're looking in these major markets. The bad news? You're going to be paying slightly more.