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San Jose, Seattle Rents SizzlePOSTED July 31, 2007 NOVATO - Quarterly rent increases sizzled at 3.1% in the Seattle and San Jose Metropolitan Statistical Areas (MSAs) according to second quarter survey results released by Realfacts. These rates translate to monthly average rent increases of $31 and $47, pushing total rents to $1,035 in Seattle and $1,569 in San Jose area. If these quarterly rates continue, both MSAs will have annual rent growth of 12.4%. The MSAs also reported strong occupancy, with Seattle holding steady just above 95% and San Jose continuing to increase, up to 97.3% from 96.5% last quarter. Consolidating the Coastal Northwest's position as rent growth leader the Portland OR and San Francisco MSAs reported 2% and 2.6% quarterly rent growth, adding $16 and $38 to monthly rent, bringing overall average rents up to $820 and $1,499 respectively. These quarterly rates annualized will yield rent growth of 8% and 10.4%. Both MSAs also reported strong occupancy at 95.7%. Looking at annual rent growth rates, 10 of the 29 major MSAs in the RealFacts database reported annual rent growth over 5%. The Coastal Northwest lead in longer term annual growth also, with San Jose at 11%, Seattle next at 9.9% followed by Portland at 7.2% and San Francisco at 7.1%. Joining the MSAs with over 5% annual rent growth this quarter are Austin and Fresno, both at 5.4%. Rounding out the top ten are Los Angeles at 6.8%, Oxnard-Thousand Oaks at 7.2%, Salt Lake City at 6.8% and San Diego at 5.5%. Previous annual rent growth leaders Phoenix, Las Vegas, and Riverside-San Bernardino continued to slide, reporting annual rent growth at 3.7%, 3.3% and 4.1% respectively. As these three slid two MSAs that had been losers for a long time look poised to join the over 5% club. If the quarterly gains recorded during the second quarter by Denver and Tulsa of 1.7% and 1.3% continue for a whole year they will post annual rent growth of 6.8% and 5.2% respectively. Overall occupancy remained strong with every major MSA over 91.5%. Nineteen MSAs reported occupancy between 93% and 96%, reflecting the stability of most markets, with apartments available and room for some rent growth. Tulsa OK stood out, posting a 4.7% occupancy gain, up to 96.6%. All 11 of the quarterly occupancy declines were less than 0.5%, further demonstrating the overall stability of the markets. Sales prices for apartment properties are up so far in 2007 according to data collected through the second quarter. The average price per unit increased to $101,971, up from $96,135 for all of 2006. Realfacts provides data and analysis of apartment markets in the Southwest, Florida and Pacific Coasts. © Copyright 2004 SVDaily.com |
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