Triangle Property Lines: Raleigh-Cary Apartment Rent Hikes Among the Highest in Nation

Tuesday, October 7, 2014

Raleigh-Cary Apartment Rent Hikes Among the Highest in Nation

TIRED OF PAYING YOUR LANDLORD'S MORTGAGE?

The average rental rate for an apartment in the Raleigh-Cary region has increased 2.1 percent in the past year, according to the third quarter survey report by research firm Axiometrics, enough to rank the area at number 13th in the nation among the 50 largest population markets.

Recent job growth in the region has been the driving factor behind this significant increase. Job growth continues to be strong, and new household formation is resulting in increased occupancy rates of the new units, which gave landlords the leeway to increase rents during the third quarter.

Job growth in the Raleigh-Cary area was 3.1 percent in 2012 and 3 percent in 2013. Total job growth for 2014 is expected to be around 3.8 percent, a gain of 20,500 jobs.

Occupancy rates also increased to 95.2 percent, compared to the 94.9 percent in the third quarter of 2013, and was the third highest rate since the third quarter of 2007. A property or market is considered to be full at 95 percent occupancy. You know this means that rental rates will continue to rise and you will pay more for that same apartment next year. More money from you, nothing for you.

The average effective rent among apartment communities that have been open a year or more was $920 per month in the third quarter, compared with $899 during the same period in 2013. That's $11,040 each year you are paying out with no equity or ownership! And most rentals are more than that. A nice home in a great school district costs $2000/month. That's $24,000 each year!! All to your landlord -- nothing for you.

Call me today! My team can help you understand your current financial situation, what you need to qualify to buy a home -- less than you think -- and how we can get you into a home of your own this year & qualify for the 2014 tax breaks that home ownerships affords you.

Elizabeth Scott, Realtor®, Broker