U.S. apartment vacancies stayed the same year over year in the third quarter at 4.7%, reflecting an overall vacancy change of 0.3% over the past two years, according to Reis Inc.
Average asking and effective rents both grew 0.8% over the previous quarter, or an increase of 3.8% year over year.
New construction during the third quarter declined to 34,821 units from 48,026 completed units in the second quarter.
Out of 79 mainly metropolitan markets surveyed, 23 saw a vacancy increase in the quarter as a result of high construction exceeding net absorption.
The metros with the largest vacancy growth during the third quarter were Jacksonville, Fla.; Tampa-St. Petersburg, Fla.; Knoxville, Tenn.; St. Louis; and San Antonio. The markets with the biggest declines were Charleston, S.C.; Chattanooga, Tenn.; Raleigh-Durham, N.C.; Palm Beach, Fla.; and suburban Maryland.
During the quarter, the metropolitan areas with the highest effective rent gains were St. Louis; Charlotte, N.C.; Tampa-St. Petersburg; Austin, Texas; and Phoenix; while Palm Beach; Omaha, Neb.; and Charleston are the only three metros that experienced declines.
Vacancy rate in New York City dropped 0.2%, to 3.7%, while average effective rent inched 0.6% higher to $3,548 per unit. In San Francisco, average effective rent stood at $3,124 per unit, with an effective rent growth of 1.3% for the quarter.
The markets with the highest effective rent growth for the year were Phoenix; Charlotte; Miami; Colorado Springs, Colo.; and Raleigh-Durham. Markets with the weakest growth were New Haven, Conn.; Little Rock, Ark.; Long Island, N.Y.; Chattanooga; and central New Jersey.
