The relief that renters have been seeking might finally be on the way, if several market indicators are to be believed. If and when rent does fall, supply might have finally caught up with demand.
According to an article by Joe Cortright, "there are a few hopeful indicators from housing markets that the long promised relief from increased supply is starting to show up, at least in a small way."
Cortright cites two reports, "one national, and one quite local," as evidence of a market shift. The first is a market analysis from REIS, which specializes in "[following] national trends in apartment construction tracking delivery (the completion of new apartments) and absorption (how many newly completed apartments get leased." Cortright summarizes the news from this source:
REIS analysts are reading the data to suggest that construction of new apartments is finally starting to have an impact on the market. REIS’s Scott Humphreys says: “It’s official: developers are finally building more apartments than there are renters to fill them.”
Also of relevance to the national rental market is a post on the Calculated Risk blog, which shares vacancy rates from the National MultiFamily Housing Council (NMFC). "Their data show that 'market tightness' has been trending downwards for the past couple of years," writes Cortright.
For local evidence of those trends, Cortright calls on a Boston Globe report that finds rents in Boston increasing at the slowest rate in the past five years. "The news from Boston echoes reports from markets as diverse as Seattle, Denver, and Houston, that the growing number of new properties being completed is producing at least temporarily higher vacancy rates and more favorable rental offerings for tenants," adds Cortright.
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