The Virginian-Pilot
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Rents for apartments in Hampton Roads have been on the rise in the past year, but so have vacancies, according to a report released this week.
The average monthly rent for an apartment in the region rose to $926 during the six months ended in October, according to Real Data, a Charlotte, N.C.-based apartment research company.
Meanwhile, the vacancy rate for apartments in the region rose to 6.4 percent, up from 5.7 percent a year ago.
"It's a bit over where we'd like it to be, but I think we're still looking much better than other metro areas in the Southeast," said Dan W. Johnson, a senior vice president at real estate firm CB Richard Ellis and a specialist in the local apartment market.
Rental rates typically fall as vacancies rise, but this time the two figures are linked, he said.
More apartments would be rented "if landlords weren't being so aggressive about keeping rents up," Johnson said.
The number of new renters coming into the market has slowed. Just 126 additional units were leased in the six months that ended in October. That's the slowest "absorption" rate since 2008, Real Data reported.
In recent years, economists have attributed falling rental vacancies to increased demand from people forced out of their homes from a foreclosure, as well as a growing trend among new households to rent rather than buy amid the housing downturn.
Despite the slowing number of new renters, developers have nearly 2,000 apartment units under construction in the region. It's the highest number of new units under construction since April 2006.
That's in addition to the 458 units developers have completed in the past six months, according to the report. The new units add to the supply, which in turn increased the vacancy rate.
And developers are planning to build new apartment complexes with thousands more units. Approximately 2,563 apartment units are proposed across Hampton Roads, according to Real Data. That's down from the 3,668 that were in the planning stages a year ago.
Compared with April, vacancies fell slightly on the Peninsula and rose in South Hampton Roads.
The vacancy rate for South Hampton Roads was 5.3 percent in October, up from 4.8 percent in April. Meanwhile, the vacancy rate on the Peninsula fell to 8 percent from 8.1 percent in April.
Josh Brown, (757) 446-2318, josh.brown@pilotonline.com
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Rents are Too High...
IMO apt rental rates in VB are too high. Could be they've priced themselves out of the "no vacancies" catagory, especially as housing costs and interest rates decrease. As I look at "for sale" housing, there are many, many affordable homes in this area and the monthly payment would be less than rent. The homes aren't located in Bay Colony, but for young, first time buyers, if you can and with low monthly payments, live there for a while, buy something new, and rent the old place.
Hard Times
It's just boils down to taking advantage of people in hard times.
Rent a home not an apartment
It may be a little risky to rent from a homeowner that can't sell their home (amateur landlord) but, a homeowner who has only one property to rent can't write off the vacant (non-earning) properties like a large landlord can. I forget if the law is "three units" allow a write off the "loss" if one of them is empty. Beware of utility costs and ask for records of previous year utility payments, especially of any home that has oil heat.