Sky-high rents and falling vacancies have characterized the U.S. apartment market for the past six years, but that is suddenly changing.
Source: www.cnbc.com
“The low vacancy rate, improving economy, tightening labor market and gradually rising income growth is providing all of the fodder for continued rent growth, even in the face of rising construction,”
That said, the market is getting crowded at the top end of the luxury segment. Affordability concerns are being raised as there is simply a finite number of people that can afford the nicest properties in each market.
This creates and opportunity for well positioned second tier properties that can provide more affordable accommodations, albeit for maybe a little older property with less amenities.