DataMarkets & Economy

US rental occupancy nearing record high, according to RealPage

Much of the new development supply is geared toward luxury, doing little for middle-market pricing
  • Rental occupancy continues on a steady upward pace.
  • There are 555,121 units underway across the nation’s 100 largest metros, forecasted to finalize at peak volume midway through 2017.
  • San Francisco rents dropped 0.2 percent in the third quarter, contrary to past years' trends.
  • Austin is a top city for new development, with 7.4 percent annual inventory growth.

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The current rental market shows striking similarities to the year 2000, according to RealPage’s Q3 report, which shows U.S. rental occupancy at 96.5 percent and growing closer to the peak of 96.8 percent posted 16 years ago. Rental occupancy is on a steady upward pace, the report shows. One year ago, occupancy was at 96.2 percent. Despite strong demand, year-over-year rental price growth has slowed recently. Annual rent rises as of the third quarter in 2016 was at 4.1 percentage points for the nation’s core 100 metros, a two-year low. For new leases of the same unit, price growth is at 4.8 percentage points -- another two-year low for the third quarter. Price on renewals for the same unit are up 4.9 percentage points, which is the same as the year prior. “The bottom line is that we’re still in pretty good shape,” Greg Willett, RealPage chief economist, stated in a video report. “I don’t know if I would term this as a significant slowdown in the overall pe...