The Trends: Apartment Prices, Asking Rents Receive Q3 Boost
- Dec 09, 2008
National apartment prices rose 2.3 percent from the second quarter to the third quarter, notching a score of 178.57, according to Moody’s/REAL Commercial Property Price Indices for November 2008. That mark is the highest of all property types examined; in addition to apartments, the report assesses the office, retail and industrial sectors. Apartments’ index is down 7.2 percent from its third-quarter 2007 score but up 2.5 percent from its tally in 2006’s third quarter. The sector’s prices have fallen for longer than the other property types, but its overall decline has been the lowest, according to the report.Meanwhile, a report from third-party property management company Sunrise Management & Consulting examined the multi-family landscape in several Northeast markets. All evaluated markets in Connecticut, Maine, Massachusetts, New Hampshire and Vermont experienced modest gains in average asking rents, and Rhode Island reversed a year-long pattern of decreasing levels to realize a $21 jump in average asking rental rates. The company segmented New York into nine regions, seven of which recorded increases in average asking rents. (The report does not include New York City.) Sinking home values, coupled with many homeowners’ inability to keep up with mortgage payments, are among the leading factors that have spurred enhanced interest in renting.