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Real Estate

How Quickly Will Apartment Rents Start Growing Again?

Source: https://www.realpage.com/analytics/quickly-will-apartment-rents-start-growing/

After the U.S. apartment market turned to rent cuts amid the economic recession of 2020, how long will it take for rents to recover? The answer varies based on whether you’re talking about the nation overall or specific local markets.

At the end of 2020, annual effective asking rents for the nation overall were cut by 1.1%. Moving forward, however, pricing is expected to reach the breakeven point in the last half of 2021, and then growth could return, getting higher than 3% by the end of calendar 2022.

But rent change performances were bifurcated across metros in 2020, and that trend is expected to continue in the near term, with some markets far out-performing other locations.

Some markets have already recovered back to pre-pandemic levels, so future rent growth in these areas will take pricing to all-time highs. This group includes some slow-and-steady Midwest region markets, and some Sun Belt spots where building has been restrained.

Less encouraging, rents probably won’t get back to early 2020 levels until 2022 or later in a handful of markets that have seen a lot of new supply of late. This group includes most of the Texas markets, as well as Minneapolis and Nashville.

In the worst cases, RealPage models suggest there is a long way to go in some of the gateway markets, which have been hardest during the COVID-19 pandemic. This group includes the Bay Area, New York, Los Angeles and Chicago. Pricing performances in those markets might not get back to the early 2020 results until 2025 or later.

To learn more about the data behind this article and what RealPage has to offer, visit https://www.realpage.com/.

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Data is changing the speed of business. Investors, Corporations, and Governments are buying new, differentiated data to gain visibility make better decisions. Don't fall behind. Let us help.

DATA PROVIDER SPOTLIGHT

ForwardKeys

ForwardKeys is one of the leading travel analytics firms that provides investment firms with alternative and predictive data on the travel industry. Data is offered both on the demand and the offer-side of the aviation market.

Actual Air Reservations is an aggregation of flight bookings made via the Global Distribution Systems. Exclusive agreements make that global travel data is available, including regions that are generally difficult to track. This data contains valuable insights into the profile, behaviour, and impact of events on past, present and future air travellers.

Seat Capacity provides insights into the scheduled flights from 99% of global commercial airlines.

Financial institutions use this data for artificial intelligence and predictive models to forecast the performances of businesses. Combined, the datasets can provide insights into the financial health of businesses operating in the travel and tourism industry. This list contains companies like airlines, airplane leasing companies, oil companies, hotels and travel agencies.