Last year, new apartment buildings hit record highs, but getting rentals is becoming more difficult. CNBC Report.
Last year, developers completed nearly 600,000 apartment complex units, according to the US Census Bureau. This is the highest level since 1974, and has increased by 34% since 2023. New York City, Dallas and Austin, Texas, lead the number of new rentals.
Rental competitiveness has increased at the national level at the beginning of this year, according to Rentcafe’s Rental Competitiveness Index.
According to Rentcafe, lease renewal rate rose to 63.1% earlier this year, compared to 61.5% early last year. Much of this could be due to rising mortgage rates and rising prices in the housing market for sale.
The apartment occupancy rate is firmly held at 93.3%, slightly higher than the beginning of last year.
Based on data presented at last year’s trending seminars, vacancies in the Baton Rouge area rose from 4.77% in spring 2023 to 5.57% in 2024. It was slightly lower than the historical norm between 6% and 7%. It rose 10% between 2021 and 2022, then 2% between 2023 and 2024.
New rental supply for Baton Rouge from 2015 to 2024 was 13,930 units, about 60% more than the pace of construction in the past decade.
Nationally, rents rose 0.3% in February, and the first monthly advance in rents increased after a sixth consecutive month of decline, according to ApartmentList. Rent is expected to rise throughout the summer. However, rents are 0.4% lower than in February 2024.
Median national rents are currently 4.6% below the August 2022 peak or below $67 a month. Typical rent prices are 20% higher than January 2021.
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