The apartment vacancy rate in the Triangle is rising as new inventory coming on the market outstrips demand for the units.
The region’s vacancy rate in March was 7.6 percent, up 2.1 percentage points from the same period last year and the highest its been since March 2010, according to a new report from Karnes Research and the Triangle Apartment Association.
Rents also increased over the year period ending in March, with the average monthly rent for all units in the Triangle up $15 to $913.
The report notes that the significant number of new projects now under construction will continue to test the market over the next six months. A total of 9,712 units were under construction in the Triangle as of March, the highest number reported during any period since 1997.
“Continued uncertainty in the housing and credit markets should, however, help to partially mitigate supply concerns in the Triangle,” the report notes. “New proposed projects, which now total 8,688 units, are queued for construction but will likely await the response to the significant development currently underway prior to breaking ground.”
Increases in demand for new apartments will be closely tied to job growth, the report notes.
From September to March, a total of 2,899 apartment units were completed in the Triangle – the highest level for the period since 2001. The most new apartments were added in the the Cary/Morrisville/Apex area, where 522 units were completed. Southwest Wake ranked second with 256 units.