Apartment News Weekly Roundup: July 7, 2009
Recession Affects Housing Trends Across U.S.
A recent article in the Wall Street Journal, which was highlighted in this week's NAA Industry Insider, writes how urban population growth has accelerated since the economy went into recession. Experts relate the migration to urban centers to the lack of a viable economy in suburbs and exurbs; housing is too expensive and jobs are scarce. [Wall Street Journal]
It appears that since 2008, cities are now growing faster than the areas surrounding them; in 2005, the largest ten U.S. Cities population increased about .5 percent each year, while the suburbs population growth was nearly double at around 1 percent. In 2008, those cities populations grew at 1 percent a year, passing the suburban growth rate of .9 percent. [Population Reference Blog]
So, how is this affecting the apartment rental market? Apartment owners should be seeing an increase in vacancies in properties located 20-30 miles outside of urban centers and renters may start seeing better deals, especially when the effect of the shadow market is considered.
Are any apartment owners who have properties in both geographical category seeing similar trends in terms of demand?
For the renters out there, does it make more sense economically to move into the center part of the city? Does it conflict with your desired lifestyle?
Could such a trend reversal be the result of people moving because they need to, or is because they want to?
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