CHICAGO—The national apartment market has undergone stupendous growth in the past two years. And even though forecasters expect a more moderate level of expansion in the near future, apartment developers should continue to build at a pace above the historical average, and rents should also continue increasing.
“During the recession, there wasn't any construction going on in the apartment industry,” Nathaniel Kunes, vice president, product management, AppFolio, Inc., tells GlobeSt.com, “and I would term the last couple of years as catch-up.”
The Goleta, CA-based software provider just produced its Market Watch 2016: US Apartment Forecast, and found that annual effective rent growth has averaged 4.1% so far this year, according to Axiometrics' market intelligence. That is a bit slower than the torrid pace of 2014 and much of 2015, but still above the seven-year historical average of 2.6%.
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
