Apartment Rent Spreads Stay Negative But the Climate Improves
The Sunbelt markets keep humming along while cities on the coasts are improving.
April 13, 2021 | Les Shaver | GlobeSt.com
While rent spreads on new apartment leases were negative 0.6% in March on a year-over-year basis and negative 0.8% on a 12-month basis, conditions are improving, according to the BTIG Monthly Apartment REIT Report. In September 2020, rent spreads on new apartment leases hit a low with a 1.3% year-over-year drop.
BTIG expects rent trends to accelerate as people return to their offices. It anticipates demand picking up in the summer before expected office and university reopenings in September.
New lease growth in March was strongest in Atlanta, Charlotte, Richmond and Tampa, according to RealPage. New lease rent spreads on the coasts have bottomed out, except for Seattle, which continues to struggle. BTIG notes that suburban submarkets such as Orange County, Calif., and New Jersey performed better than urban centers.
