Rental-Apartment Market Not As Badly Hurt
SOURCE: Wall Street Journal Online
Retail property vacancies have risen to multiyear highs as retailers have been closing stores and reducing their expansion plans. The faltering economy has taken a heavy toll on malls and shopping centers in the second quarter, but it didn't hurt the rental-apartment market as much as expected.
Apartment-complex vacancies have stayed at the same levels and rents have been rising by more than was expected. Landlords are continuing to benefit from the housing slowdown which has created more renters. The slowdown has also kept existing renters from purchasing a home as the mortgage market has tightened.
Rent growth itself was stronger than anticipated with an increase in rents by 1.1% in the second quarter. The vacancy rate has remained at 5.9%. It is felt that due to greater rent growth caused by the economic slowdown and weaker wage growth, landlords have more power than would normally be seen in this cycle.
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Retail property vacancies have risen to multiyear highs as retailers have been closing stores and reducing their expansion plans. The faltering economy has taken a heavy toll on malls and shopping centers in the second quarter, but it didn't hurt the rental-apartment market as much as expected.
Apartment-complex vacancies have stayed at the same levels and rents have been rising by more than was expected. Landlords are continuing to benefit from the housing slowdown which has created more renters. The slowdown has also kept existing renters from purchasing a home as the mortgage market has tightened.
Rent growth itself was stronger than anticipated with an increase in rents by 1.1% in the second quarter. The vacancy rate has remained at 5.9%. It is felt that due to greater rent growth caused by the economic slowdown and weaker wage growth, landlords have more power than would normally be seen in this cycle.
WSJ Subscriber only report »
