Multifamily Rental Rates Rising Throughout Most of Northeast Market For the Past Year

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Sunrise Management & Consulting of Albany, NY has released its Spring 2012 Multifamily Market Report for the Northeast. The research found that average rental rates throughout most of the Northeast are at or above rental rate levels from a year ago, and many have increased significantly in the last six months.

The rental market continues to benefit from the country’s economic issues, the changes in demographics and the challenges in the housing market.

The Spring/Summer 2012 Sunrise Multifamily Rental Market Report finds average rental rates throughout most of the Northeast to be at or above rental rate levels from a year ago, and many have increased significantly in the last six months. The findings are driven by continued rising demand for rentals amid constrained inventory throughout the region.

A summary of a few findings:

New York State generally has recovered from the downturn:

  • NY has had steady growth throughout the past year
  • Capital Region (Albany) leads NY with good growth over F2011
  • NY Western-Central (Rochester) has established strong recovery since F2011.

New England results are mixed:

  • CT and ME are relatively flat over the past year with some recovery in the past six months
  • RI has shown dramatic recovery since F2011
  • All MA and NH have shown growth over F2011, largely in the last six months

With the economic climate still somewhat uncertain and with renting being flexible and convenient, demand is being driven away from home ownership. It remains difficult to finance a home purchase, even though interest rates remain at a record low. Additionally, significant down payments are required and people are still worried about purchasing a home that could possibly lose value.

“The rental market continues to benefit from the country’s economic issues, the changes in demographics and the challenges in the housing market,” said Jesse Holland, Sunrise Management & Consulting president.

Landlords will maintain their margins as the operational costs, i.e. taxes, insurance,
and maintenance, continue to rise. In general supply remains constrained due to the long development cycle of new properties and therefore rents are expected to continue to rise.

The Sunrise Multifamily Rental Market Report includes the entire Northeast except New York City. The states surveyed and reported on include Connecticut, Maine, Massachusetts, New Hampshire, New York, Rhode Island and Vermont. The research team at Sunrise & Management & Consulting compiled the information by surveying nearly 1,950 apartment communities, representing 340,000 apartment units, and updating the unit mix rental rate database.

The Sunrise biannual survey of rental conditions in the multifamily housing segment details average asking rents by unit mix and by square footage, and tracks historical trends on a county, regional and state basis. Sunrise Management & Consulting will prepare customized reports to meet any user’s specific needs. Information on customized reports can be obtained by contacting Sunrise at 518-782-0200.

Sunrise Management & Consulting has been providing market research to the multifamily industry since 2001. The data has been updated on a bi-annual basis utilizing proprietary software. The software includes a report package and scoring system (patent pending), which together encompasses The Property Gauge database and reporting tools. The Property Gauge™ is a real estate research and analysis service that specializes in providing accurate and reliable information on the multifamily sector of real estate

Headquartered in Albany, NY, Sunrise Management & Consulting AMO is an innovative third party property management company providing property management services, market research, and consulting to property owners, investors and homeowner associations throughout the Northeastern United States. Sunrise is the creator of the Property Coach™ system for maximizing property investments. For information about Sunrise find us at http://www.sunrisemc.com

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