As apartment owners deal with rising interest rates and slowing rents they have still managed to keep their expenses in check, according to an analysis of quarterly earnings by Green Street analyst Alan Peterson. There was an average of 5.5% expense growth in the first quarter, per most apartment companies' guidance, following a 5% increase last year.
This steady state for expenses, though, could be upended or at least destabilized if turnover, which has been depressed since the pandemic, begins to creep up, Peterson says.
"For most renters, it has been cheaper to stay in place even with rent increases."
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Erika Morphy
Erika Morphy has been writing about commercial real estate at GlobeSt.com for more than ten years, covering the capital markets, the Mid-Atlantic region and national topics. She's a nerd so favorite examples of the former include accounting standards, Basel III and what Congress is brewing.
