Search
 

Apartment Market Firming Up

DETROIT-As a result of fewer construction projects, the Motor City's apartment market vacancy rate is improving. A recent study of the market shows construction down 20% from the same period last year, while vacancies are expected to fall to 6.8% by year-end.

By Dan Heaton | Updated on September 01, 2005

DETROIT-A reduction in apartment construction projects is encouraging Detroit-area landlords to raise asking rates for leases. “Detroit’s economy is improving modestly, and apartment fundamentals are following suit,” says Steven R. Chaben, first vice president and regional manager of the Marcus & Millichap office in Detroit.

“The renter pool is increasing and the delivery of new units has slowed for three consecutive years, leading to a projected vacancy reduction this year,” Chaben says. “With lower vacancy, owners will begin to trim concessions, boosting effective rents and property incomes by year end.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.