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August 10, 2010
Source: Triangle Business Journal
By: Amanda Jones Hoyle
Apartment rental and vacancy rates for properties in the Raleigh-Durham region improved in first half of 2010, as demand strengthened and new construction slowed.
The average vacancy rate for the 103,383 apartment units tracked by apartment market research firm Real Data of Charlotte improved to 8.7 percent in July compared to a rate of 9.9 percent in January and a rate of 10.4 percent in July 2009, when the market’s vacancy rate peaked.
Renters signed to lease 2,912 vacant units between February and July, which was an improvement over the absorption of 604 units during the same period a year ago.
The Triangle apartment market’s average rental rate was $786 in July, which was up by 2.5 percent in the past six months. New apartments that are still in the lease-up stage have the highest average rental rate in the market, at $1,017 per month.
Real Data projects that average rents and occupancy levels will continue to rise over the next year as demand increases and new construction remains tempered.
Only 1,273 apartment units were under construction in July, Real Data’s report states, which compares to 3,234 units that were under construction the year prior. Another 1,137 units are proposed to be built in the Triangle, but many projects have been put on hold due to lack of financing.
Apartment communities that are under construction include the following:
