Trending News, Apartment Rents Rising! What does this mean for the Real Estate World?

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Apartment rents in the U.S. climbed the most in almost five years in the second quarter as shrinking vacancies allowed landlords to charge more, Reis Inc. (REIS) said. This is positive news for the markets that have been struggling.

Supply Side: For the past year, new construction has been ‘quite weak by historical standards.’ But construction of both rental units and new home building are now seeing an upturn. It is estimated that next year, 150,000-200,000 new units will be completed in 79 metropolitan markets. Confidence in new construction is rising!

Demand Side: Demand for rentals jumped during the real estate slump due to insufficient income, bad credit, and lack of confidence in real estate. The national apartment vacancy rate fell to 4.7% in the second quarter, the lowest since 2001. Confidence in real estate is rising!