How tight are supplies? Less than five percent of the national apartment supply was vacant this past spring, according to Reis. That’s only the third time that’s happened in over thirty years.
“The target renter demographic (younger Americans) has seen what’s happened in home buying, and the ease of just writing a monthly check is compelling,” says analyst Alexander Goldfarb at Sandler O’Neill.
For investors in apartment REITs (real estate investment trusts), that means higher returns. For buyers in the space, however, that means pricier properties, and smaller gains.