Sky-high rents and falling vacancies have characterized the U.S. apartment market for the past six years, but that is suddenly changing. The share of apartments available for rent rose for the second straight quarter at the end of last year, the first time that has happened since 2009, according to real estate data firm Reis.
“This truly represents a turning point in the apartment market. With construction outpacing demand, the national vacancy rate should slowly drift higher over the coming years,” said Ryan Severino, senior economist and director of research at Reis.
Vacancies are rising, but rents are also still rising at a robust pace, up 4.6 percent annually. This is well ahead of core inflation and the strongest performance for rents since 2007, before the recession.
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