U.S. apartment market fundamentals experienced continued moderation in the third quarter, further signaling that the market has entered its maturation phase. Unlike in earlier stages of the property type’s expansion, metro performance has begun to differentiate to a larger extent. Still, the overall market remains healthy, bolstered by high occupancy levels.
Rent growth dipped to it’s lowest level since early 2010, with rents rising 2.0% over the past 12 months1. At 2.0%, annual rent growth sits 80 basis points below it’s historical average since 1995. The decline has been swift as year-over-year rent growth topped 5.0% for the majority of 2015.
Source : Deutsche Asset & Wealth Management