Rent growth slows in Valley
December 20th, 2007, 3:11 pm · Post a Comment · posted by mistywilliams
The Valley’s average apartment rent hit a record high in the third quarter of this year at $773, but rents are no longer growing at a breakneck pace.
That’s according to a new report by apartment market expert Pete TeKampe at brokerage Marcus & Millichap.
The average rent increased only $5 from the previous quarter, the second smallest quarter-to-quarter increase since early 2005, according to TeKampe. Meanwhile, 62 percent of apartment complexes were offering concessions, such as a month’s free rent, in the third quarter, compared with only 43 percent a year ago.
The rental market’s slowing growth is caused in part by a surge in the supply of units. Apartments converted to condominiums during the boom have now been turned back into rentals. And frustrated home sellers are renting out their houses.
