- The apartment sector has seen very strong vacancy decreases (down 0.2% to 4.3% from the end of 2012). Rents increases have also been solid, rising by 0.5% this quarter.
- These numbers may not last too far into the future, partly due to the increase in multi-family housing properties under development.
- This will likely create landlord competition, lowering the high levels of pricing power that many landlords are seeing today.
- Because rent prices are at a multi-year high, landlord pricing power may be already beginning to decay.
The first quarter showed very strong numbers in the first quarter of 2013. These numbers may decline in the near future as high prices and multi-family housing developments look to reduce landlord pricing power.