· Sacramento, CA
· Las Vegas, NV
· Phoenix, AZ
· Raleigh-Durham, NC
· Jacksonville, FL
· Riverside, CA
*Top markets were selected based on projections as reflected in the Ten-X Research Long Term Forecast
Southeast – Raleigh-Durham Apartment
Raleigh-Durham apartment market vacancies lowered to 4.6% in the second quarter, per REIS, but remain 30 bps higher than a year ago. Overall, vacancies have declined more than 400 bps from the recessionary peak as heavy construction was met with strong absorption. Effective rents are currently growing in robust fashion, up 5.1% year over year.
The market is faced with heavy supply additions through the rest of 2017 but completions will cool in years to follow. Absorption is also forecast to remain vigorous through 2018 and resilient amid our 2019-2020 stress test scenario. With demand set to keep pace with supply from 2018-2020, Raleigh is one of the few remaining US markets not forecast to see substantial vacancy increases during the forecast period, and a subsequent decline in the first recovery year. Strong rent growth is likewise forecast through 2021.
Full report HERE
Source: Ten-X Commercial Capital Markets Update