Lawrence Yun, NAR chief economist, said vacancy rates are improving in all of the major commercial real estate sectors. “Sustained job creation is benefiting commercial real estate sectors by increasing demand for space,” he said. “Vacancy rates are steadily falling. Leasing is on the rise and rents are showing signs of strengthening, especially in the apartment market where rents are rising the fastest.”
In early 2009 we saw a HUGE decrease in rents in Los Angeles with about a 15 percent and up to 30 percent decrease in some of the higher demand neighborhoods. Vacancies flooded the market; renters were moving/downsizing due to the economy, and some were moving to take advantage of the lower rents.
After rising 2.2 percent last year, average apartment rent is expected to increase 3.8 percent in 2012 and another 4.0 percent next year. Multifamily net absorption is forecast at 209,900 units this year and 223,600 in 2013.
With rents on the rise, yet still a lot lower than pre-2008 rents, now may be a good time to move and settle in for a bit.