The Trulia organization reported that Houston led the nation last year with a 16.2 average gain in apartment rents.
But Houston’s not alone. There are rent hikes more to come in 2013, for most markets in the nation, according to new projection released by The MORE Group.
The MORE Group is projecting overall nationwide apartment rental rate increases of 3 to 5 percent in the year ahead, although certain markets will see larger rent gains.
Rising rents, declining vacancies and an expansion of construction activity will prevail in most of the nation’s multifamily markets in 2013, according to The MORE Group, a real estate organization specializing in developing, rehabilitating and marketing apartment properties.
“The opportunities for multifamily investors will be exceptional in 2013,” said Victoria Wood, president of The MORE Group. “The new year brings the probability of rising valuations on multifamily properties and the trend is firmly supported with rising rental rates and high occupancy.”
The MORE Group is receiving a number of inquiries from investors and institutions regarding asset management services for multifamily portfolios following their recent acquisitions across the nation, Wood said.
“The multifamily sector is strong and many sophisticated investors need to establish a position with well-timed apartment investments,” Wood said. “We are partnering with a number of investment groups that rely on The MORE Group for acquisition counseling and asset management services.”
The uptick in multifamily construction is expected to continue throughout 2013, and perhaps well into 2014, Wood said.
A number of developers are seeking urban infill locations, which have strong market appeal to the Generation Y, a large demographic segment between 20 and 34 years old. A similar trend to watch is the emergence of “micro” units, some less than 500 square feet, which have lower rents for tenants on limited budgets, Wood said.
The MORE Group is a Delray Beach, Florida-based real estate organization that operates across North America developing, rehabilitating and marketing rental units, as well as condominiums with for-sale units. The firm has experience in optimizing more than $1 billion in real estate assets, directing asset management, fractured condominium workouts and construction projects. www.TheMOREGroupre.com