Tuesday, August 28, 2007

SLOWDOWN OF APARTMENT RENTALS

(The Dallas Morning News) – The pace of apartment rental has slowed dramatically according to the latest numbers released by apartment consultant M/PF YieldStar.
Average monthly apartment rents at the end of June were up about 1 percent from a year ago to $716.
"Results for the second quarter fell way below expectations," said Greg Willett of M/PF YieldStar, with virtually no increase in apartment rentals.
A net 300 units were leased during this year’s first half, compared with the more than 7,000 net apartments leased in the same time last year.
Homebuilder giveaways and for-rent homes are in direct competition with the apartment market.
"The number of single-family homes available for rent appears to be way up, even though many aren't getting rental rates that actually cover mortgage costs," Mr. Willett said.
Dallas–Fort Worth leads the country in teardowns, mostly to create redevelopment sites. More than 3,500 area apartments were demolished in the last six months. Even so, overall vacancy rates inched up to about 7 percent.
Almost 13,000 units are in the construction pipeline, mostly in central Dallas and in the Las Colinas area, according to M/PF YieldStar's latest estimate.