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June 18, 2015Sunrise Management & Consulting Releases 2015 Multifamily Rental Market Report
Capital District Rents Rise 5.4% as Local Economy Grows and Demand Increases
Albany, NY – June 17, 2015 – Sunrise Management & Consulting today announced the release of its 2015 multifamily rental market report. Data culled from over 1,900 apartment communities representing over 300,000 units indicate rents are generally up throughout Upstate New York and New England. The annual survey of rental conditions in the multifamily housing industry details average asking rental rates by unit mix and square footage, and tracks historical trending data on a county basis. The free report is available for download at www.sunrisemc.com.
In the Capital District, rents rose a significant 5.40%. Saratoga County saw the largest increase with rents rising 11.04%. Rents in Albany and Schenectady rose an appreciable amount as well: 6.24% and 5.25% respectively. Rensselaer showed an increase of 3.96%.
Results from the multifamily report reflect an increasing demand for rental units in the Capital District fuelled by the improving local economy. According to the U.S. Department of Housing and Urban Development (HUD), the number of apartments in the pipeline will satisfy only half the area’s demand over the next three years.
Jesse Holland, president and founder of Sunrise Management & Consulting, predicts that, as the supply of both apartments and single family homes continue to be absorbed, the multifamily market will remain tight while, over the next few years, the single family home market will follow: “We are experiencing a unique phenomenon in our local housing market. Normally, as multifamily demand increases, single family demand decreases. But, building in both the multifamily and single home sectors has been limited over the past few years resulting in a low housing supply just as local economic conditions are heating up and contributing to demand.”
According to HUD, the single family vacancy rate in the Capital District was 1.3% in 2014 compared to the national vacancy rate of 1.9%. HUD predicts that the homes currently under construction in the area, as well as vacant units which may reenter the market, will only satisfy a portion of the single family home demand.
Growth in education and health services, as well as high-technology jobs, has attracted top talent and improved overall economic conditions in the area. According to HUD, the growth of the education and health services has resulted in a 30% increase in jobs in this industry since 2000. Big technology players, such as General Electric and GlobalFoundries, have also contributed to a number of jobs and attracted other businesses in the technology field.
Holland added, “The Capital District is well suited for real estate investment. Builders here are conservative: they don’t want to over-build and risk default. Plus, data on the housing market keeps getting better. I predict a stable housing market in the years to come which will contribute to the development of a robust local economy.”
About the Sunrise Management & Consulting Multifamily Rental Market Report: Sunrise Management & Consulting has been providing market reports on the New York Capital District and Northeast rental market since 2001. Data is updated on an annual basis utilizing proprietary software. Please visit our website at www.sunrisemc.com to download the 2015 market report and learn more about our services.
About Sunrise Management & Consulting: Sunrise Management & Consulting provides development consulting, marketing, leasing and property management services for multifamily investors across the northeastern United States. The professionals at Sunrise Management & Consulting utilize innovative management and consulting programs to deliver consistent, dependable results that exceed industry performance standards. The company also provides real estate brokerage services in residential, multifamily, commercial and investment transactions through its subsidiary, Sunrise Realty Advisors. For more information, please visit www.sunrisemc.com.
