(Reuters) – U.S. apartment vacancy rate was flat in the second quarter, with vacancy rising in 26 of 79 metros, real estate research firm Reis Inc said on Wednesday.
Vacancy rate was unchanged in the quarter at 4.7% from the year earlier.
Existing home sales have fluctuated a bit in 2019, but at higher levels than at the end of 2018, Reis said.
“With construction slowing as soon as later this year and throughout 2020 for many major markets, continuing robust demand for rentals will likely manifest in vacancy rates that stay well in the 4s, or at most, rise to the low 5s,” the research firm added.
The national average asking rent and effective rent increased 4.3% each in the second quarter from the year earlier, Reis said.
Both net absorption and new construction fell about 47% in the second quarter to 36,052 units and 38,693 units, respectively.
“While we expect some revisions to these numbers, the low levels are still surprising,” Reis said.
“The apartment market is expected to add more units than last year in which 261,000 units were added.”
(Reporting by Divya R in Bengaluru)