The rental market is picking up throughout the Northeast, according to a fall 2005 report released today by Sunrise Management & Consulting.
“The strongest gains were found in the Eastern Massachusetts, New Hampshire and Connecticut regions. The Sunrise report notes that these same areas had an increasing number of condominium conversions,” according to the announcement.
The Fall 2005 Sunrise Multifamily Rental Market Report noted that the rental market has improved from the flat growth observed during the previous reporting period. Only the New York central region market reported a loss in average rental rates, Sunrise reported.
Among the regional trends identified in the report:
- Healthy growth in New Hampshire and Rhode Island, with a $25 increase in average rental rate in New Hampshire and a $20 increase in Rhode Island.
- The Connecticut markets reported growth in both the eastern and western regions, with average rent up to $1,419 (from $1,394) in Connecticut’s Fairfield County region.
- In Massachusetts the report found growth markets in the region of Boston and its suburbs, with increases of $31 in average rent, and the Springfield region, with an increase of $14.
- The small Vermont multifamily rental market recorded a gain of $58 in average rental rate.
- Modest growth throughout the New York state markets, with the exception of Syracuse, where average rental rates declined $9. The North Country (Plattsburgh) region led in growth in what the Sunrise report found to be a generally healthy NY rental market.
- Maine reported modest growth where substantial growth had been the trend.
“With the growth in the market we found properties changing and reducing their use of concessions to maintain occupancy rates,” said Jesse Holland, president of Sunrise Management & Consulting, in a statement. “Some communities eliminated market concessions without reducing rent while others provided concessions not previously reported.”
The Sunrise Multifamily Rental Market Report includes the entire Northeast area except New York City, and provides rental rate trends for comparative analysis. The states included in the survey are Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont. The research team at Sunrise Management & Consulting compiled the information by surveying about 1,900 apartment communities that encompass 330,000 apartment units.
The Sunrise biannual survey of rental conditions in the multifamily housing segment details average asking rents by unit mix and by square footage, and tracks historical trends on a county, regional and state basis, according to the announcement. Multifamily property investors, managers, developers and appraisers use the Sunrise Multifamily Rental Market Report for market analysis, measurement of past and present performance of properties, development opportunities and to determine comparable rental structures. Public officials, regional planning agencies and economic development groups use the information in housing cost and needs analysis.
A free regional summary report is available at www.sunrisemc.com.
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