Thank you for sharing!

Your article was successfully shared with the contacts you provided.

(To read more on the multifamily market, click here.)

ATLANTA-With solid job growth and a slowdown in construction resulting in positive absorption, the apartment market will show improved vacancy rates, according to a Marcus & Millichap research report.

“The supply side has been constrained so there are fewer units available for rentals,” John Leonard, a vice president of Marcus & Millichap and regional manager of the firm’s Atlanta office, tells GlobeSt.com. “A lot of developers are focusing on for-sale product rather than for-rent.”

According to the report, employment growth will increase 2.5% in 2006, a net gain of 60,000 jobs. Employment grew by 2.9% for the 12-month period which ended in March, for a net gain of 67,800 jobs. At the same time, construction of new apartment buildings has slowed as builders continue to focus on condominiums and townhomes. Approximately 3,800 units are slated for completion in 2006, down from last year’s total of 5,100 units.

As a result, vacancy is expected to improve 60 basis points to 7.4% by the end of the year. Vacancy for class A properties is 7.2%, while vacancy for class B/C properties is 9.6%. With decreased vacancies, owners are expected to raise rents. Asking rents are forecast to increase 1.2% to $834 per month, while effective rents will jump 3% to $751 per month as owners reduce concessions. Investment activity has also been strong. At the end of the first quarter, the median price per unit was $56,000, up 11% from a year ago, the report states. “The market is really improving so we’re seeing a lot of investors attracted to the area,” Leonard says.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?



Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt
Live Chat

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.