Apartment Rents Likely to Increase in 2006
Author: Diana Heeb Bivona
Commercial brokerage firm Marcus & Millichap are predicting an increase in apartment rents for several key cities including Orange County, Fort Lauderdale, Las Vegas, San Diego, and New York City.
Since 2001, the national rental-apartment market has slowly climbed out of its slump. Marcus & Millichap expect the recover to continue through 2006. Factors for the continued increase include modest employment gains in some cities, the high cost of homeownership, and the reduction in the rental supply due to the conversion of apartments into condominiums.
Their study predicts that in 2006, the apartment market will show “the healthiest effective rent growth since the market peak of 2000.”