Despite recovery in the single-family housing market, demand for apartments continues to surge. Just 4 percent of U.S. apartments nationwide were vacant in the second quarter of this year, according to a new report from Reis. That pushed rents up 3 percent from a year ago.
"The simple fact that vacancy continues to compress despite such low vacancy rates speaks volumes about the ongoing demand for apartments," said Ryan Severino, senior economist at Reis. "The national vacancy rate now stands 380 basis points below the cyclical peak of 8 percent observed right after the recession concluded in late 2009."