The Rental Market still presents rising rents and low vacancy to those seeking apartment living. Even though about a quarter million new units were delivered in 2014, rents continue to rise and vacancy remains around 5%. 2015 is projected to add another 250,000 new apartment units to the US market, with especially high deliveries in the Texas markets
So what's keeping the pressure on rates and vacancies? Demand - from young folks that move out of parents homes, from boomers downsizing and prefer rentals, and pent up demand from job seekers now able to form households. The creation of new households will outstrip even aggressive building of new units and will continue absorb the single family home rentals available. Investors are committing enough new money to demonstrate their long term optimism on the rental market.
In some cities affordability drives people to rent, even where average rents are high. Two notable examples are New York and San Francisco where monthly rent above $3000 is still half what a mortgage payment could be. Further, that is generally true of the west coast and the Washington DC to Boston corridor, with some exceptions.
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