Apartment Occupancy Rate Sets Record with Fourth Consecutive Month Increase in May MultifamilyBiz.com (06/18/2015)

According to Axiometrics, the nation's apartment market recorded a monthly occupancy rate of 95.3 percent in May, along with annual effective rent growth of 5.0 percent -- the fourth month in a row that this particular metric was at or above the 5 percent mark.  In fact, the four-month streak was the first since May to August of 2011.  Furthermore, the May occupancy rate -- a 12-basis-point increase from April -- was the highest since Axiometrics started monthly reporting in 2008.  "Owners and investors are having a profitable start to the year," said Stephanie McCleskey, Axiometrics Vice President of Research.  "One interesting point is that rent growth is increasing in previously challenged markets in the East and Midwest, such as Chicago, St. Louis, Philadelphia, Kansas City, Baltimore, and even Detroit."

While Oakland reported the highest annual effective rent growth among Axiometrics' top 50 apartment markets again, the rest of the top 10 underwent a bit of a shake up.  For the first time in at least a year, for instance, the top five did not include all three Bay Area markets, as San Francisco fell to sixth place.  Portland leaped from number four to the second-place spot, while Sacramento eased into that fourth-place opening. Finally, the top five smaller metro areas among the Axio Top 120 in May included three Florida markets and two California markets, just like the month before, although Palm Bay, Fla., replaced Deltona.