Apartments Filling Up As New Construction Slows

ATLANTA-The metropolitan area’s multifamily market is getting some good news along with the bad, according to a first-quarter market survey by locally based Bullock Mannelly Partners Inc.

The good news is that apartments are filling up again as permits for new multifamily communities continue to decline. They are declining because potential tenants are buying homes in suburban areas at record-low interest rates instead of renting, suggests Erik Pawloski, research director at locally based Bullock Mannelly Partners Inc.

The bad news for property owners, however, is that concessions continue to rise as existing properties struggle to retain tenants, Pawloski says. Class A properties are reporting the highest concessions at about $137 per unit. Class B properties are allowing $122 per unit; class C, $86 per unit. Average monthly rents are $951 for class A; $814 for class B; and $724 for class C.