Apartment Rents Teeter On Negative Growth As Supply Set To Surge
Portfolio Pulse from AJ Fabino
U.S. apartment rents might experience negative growth rates as early as next month due to a surge in supply. The annual growth rate stood at 11% a year ago, but rents in August registered a marginal 0.28% rise compared to the same period last year. Elevated mortgage rates, soaring home prices, and limited availability have anchored potential buyers to the rental market. Meanwhile, 460,000 new units are slated for completion this year, marking a 50-year high in construction. This influx is expected to erode landlords' pricing power. Stocks to watch in the housing development space include AvalonBay Communities Inc, UDR Inc, Mid-America Apartment Communities Inc, Apartment Investment and Management Co, and Essex Property Trust Inc.
September 08, 2023 | 8:50 pm
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NEGATIVE IMPACT
Apartment Investment and Management Co may be impacted by the potential negative growth in apartment rents.
As a real estate investment trust that focuses on apartment communities, Apartment Investment and Management Co may see a decrease in their rental income due to the potential negative growth in apartment rents.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
AvalonBay Communities Inc may be impacted by the potential negative growth in apartment rents.
As a real estate investment trust that focuses on apartment communities, AvalonBay Communities Inc may see a decrease in their rental income due to the potential negative growth in apartment rents.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Essex Property Trust Inc may be impacted by the potential negative growth in apartment rents.
As a real estate investment trust that focuses on apartment communities, Essex Property Trust Inc may see a decrease in their rental income due to the potential negative growth in apartment rents.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Mid-America Apartment Communities Inc may be impacted by the potential negative growth in apartment rents.
As a real estate investment trust that focuses on apartment communities, Mid-America Apartment Communities Inc may see a decrease in their rental income due to the potential negative growth in apartment rents.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
UDR Inc may be impacted by the potential negative growth in apartment rents.
As a real estate investment trust that focuses on apartment communities, UDR Inc may see a decrease in their rental income due to the potential negative growth in apartment rents.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80