While rent spreads on new apartment leases were negative 0.6% in March on a year-over-year basis and negative 0.8% on a 12-month basis, conditions are improving, according to the BTIG Monthly Apartment REIT Report. In September 2020, rent spreads on new apartment leases hit a low with a 1.3% year-over-year drop.
BTIG expects rent trends to accelerate as people return to their offices. It anticipates demand picking up in the summer before expected office and university reopenings in September.
New lease growth in March was strongest in Atlanta, Charlotte, Richmond and Tampa, according to RealPage. New lease rent spreads on the coasts have bottomed out, except for Seattle, which continues to struggle. BTIG notes that suburban submarkets such as Orange County, Calif., and New Jersey performed better than urban centers.
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Leslie Shaver
Les Shaver has been covering commercial and residential real estate for almost 20 years. His work has appeared in Multifamily Executive, Builder, units, Arlington Magazine in addition to GlobeSt.com and Real Estate Forum.
