Search
 

Apartment REITs: Rent Growth Slowing

According to the latest report from investment bank Cohen & Co., notable transitions to deceleration on a T12M basis included: Boston, Dallas, Orlando, San Diego, and Silver Spring

By Natalie Dolce | nataliedolce | | Updated on April 18, 2016
Rent Growth Slowing Rent Growth Slowing
Nationally, monthly rent growth for apartment REITs have slowed to 4.1% year over year in March from 4.2% in February. That is according to the latest report from investment bank Cohen & Co. Analyst James Sullivan says that in addition, the trailing 12-month average dipped 8 bps to 4.79%. “The T12M average rent growth, has been slowing for market perform-rated AVB, CPT, EQR, and ESS since late last year and the trend continued in March,” according to the report. “Rent growth for UDR appears to be peaking on a T12M basis, with recent monthly results below the moving average.” The exceptions appear to be outperform-rated MORE and MAA, as well as Market Perform-rated PPS, where T12M rent growth has been stable-to-rising, says the report. “Although we have begun to observe deceleration in the Axiometrics results, we still expect accelerating rent growth from much of our coverage in 1Q and do not expect to see sector-wide moderation until the back half of the year.” According to the firm, notable transitions to deceleration on a T12M basis included: Boston, Dallas, Orlando, San Diego, and Silver Spring. “Northern California markets continued to moderate from high levels reached late last year. Los Angeles and Seattle appear to be plateauing.” Rent growth in the NYC metro area slowed to 3% on a T12M basis in March, from 4% in 4Q15, the firm says. And DC continues to improve after turning positive in late 2014/early 2015.

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.