Average Rental Rates Increase in Northeast: Report

Average rental rates in multifamily properties throughout the Northeast rose modestly in the face of a troubled residential housing market, according to a survey released Friday by Sunrise Management & Consulting. The Fall 2008 Sunrise Multifamily Rental Market Report showed rate increases in most of New York and in all of Massachusetts, New Hampshire, Maine and Vermont. According to the report, the Rhode Island and western Connecticut markets reversed earlier flat growth with rental rate increases. “Dropping home values, a slowing economy and foreclosures are increasing demand for rental units,” said president Jesse Holland. “With vacancy rates decreasing nationally, the only housing group not facing an oversupply of inventory is the multifamily segment.” Most New York markets reported average rental rate increases, led by the northern region with a $18 average rate increase, according to Sunrise’s survey results. New York’s Hudson Valley market, which was down $4, and southern region — which was down $7 — posted decreases in average rental rates. Rhode Island reversed a year-long downward trend, however, with a $21 increase in average rental rates, Sunrise reported. The Sunrise multifamily rental market report surveys all of the Northeast, except New York City. The survey captured rates at almost 1950 apartment communities, the company said, representing 340,000 apartment units. Increasing rental rates are likely to become more common as demand for rental units increases amid the downturn in man of the the nation’s key housing markets, economic experts have predicted. For more information, visit www.sunrisemc.com. Write to Diana Golobay at diana.golobay@housingwire.com.