RealPage® Reports Moderate Apartment Rent Growth for Calendar Year, Normal Seasonal Pricing Cuts in the Fourth Quarter

Occupancy remains tight, helped by demand bumps in hurricane-impacted markets

Richardson, TX – January 3rd, 2018 (BUSINESS WIRE) U.S. apartment rents climbed at a moderate pace of 2.5 percent in calendar 2017, according to real estate technology and analytics firm RealPage, Inc. (NASDAQ: RP). Nationally, typical monthly apartment rent is now $1,330.

Effective rents for new leases slipped 0.9 percent during the fourth quarter. Those slight rent cuts late in the year reflect normal seasonality, as slower leasing activity in the colder-weather months can spur housing owners and operators to offer more pricing deals.

“While the apartment rent growth pace has slowed from the performance seen a couple years ago, it’s the longevity of the current cycle that’s so impressive,” said Greg Willett, RealPage’s chief economist. “Rents have climbed substantially for eight consecutive years.”

Few local markets are experiencing the price spikes that were common in 2014-2015. Sacramento’s yearly growth is currently the strongest among the country’s bigger metros at 6.5 percent, but the California capital is the only large market posting an increase of more than 6 percent.

Two years ago, more than a dozen big metros registered rent jumps topping 6 percent, with the pace of increase reaching as high as 12 percent in Portland, Oregon, then the country’s rent growth leader. Rents in Portland climbed just 1.9 percent in 2017.

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Apartment rents held largely flat during 2017 in several of the nation’s big markets. Rent growth proved minimal at less than 1 percent across Kansas City, Nashville, San Antonio, Pittsburgh, West Palm Beach and Washington, D.C. Prices even dipped a bit in Austin, where average rent slid 0.4 percent.

Occupancy Remains Healthy

National apartment occupancy stands at 95.1 percent at the end of the fourth quarter, unchanged from the year-ago performance.

While year-end occupancy inched down 20 basis points from 95.3 percent in the third quarter, the decline is less than the normal seasonal drop of about 50 basis points that occurs when leasing activity slows as the temperature cools.

That smaller-than-typical seasonal occupancy drop reflected market tightening in a handful of locations where hurricane damage sent displaced households to the apartment stock. In Texas, occupancy jumped 140 basis points on a quarterly basis in the big Houston metro and 220 basis points in the smaller Corpus Christi market. Florida metros, which have received households leaving Puerto Rico, tended to register small occupancy increases in the fourth quarter.

“The country’s apartment market remains tight, with product availability generally limited to recently-completed properties moving through initial leasing,” Willett said. “Unless a renter can afford that expensive new stock, finding a ready-to-lease unit takes some real work in most locations.”

Among the country’s bigger markets, Minneapolis/St. Paul stays atop the occupancy leaderboard, with 97 percent of the existing stock now full.

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The Outlook Holds Stable

RealPage market analysts anticipate that 2018’s apartment performance fundamentals will register at levels very similar to the 2017 results. “Minimal shifts in momentum are expected over the coming year,” Willett said. “Apartment demand should stay very solid, but new supply will continue to be delivered at a pace that will keep leasing conditions competitive in the top-tier product niche. In turn, rent growth should remain moderate.”

“The biggest question mark for 2018 may be the construction starts volume,” according to Willett. “At this late stage of the cycle, new building sites are difficult to source, and construction costs have climbed notably. With fewer starts likely in the coming year or so, delivery volumes should fall quite a bit by 2019 and 2020.”

About RealPage

RealPage is a leading global provider of software and data analytics to the real estate industry. Clients use its platform to improve operating performance and increase capital returns. Founded in 1998 and headquartered in Richardson, Texas, RealPage currently serves nearly 12,500 clients worldwide from offices in North America, Europe and Asia. For more information about the company, visit http://www.realpage.com.

Contacts

RealPage, Inc.
Jay Board
(972) 820-4915
jay.board@realpage.com

A Look at the 2017 Foreclosure Market and the Future in 2018

Analysis of 2017 foreclosures real estate market and forecast for 2018

Miami, FL – Nov. 20, 2017 (PRNewswire) The following is an analysis on the 2017 foreclosure market and the future in 2018 from BankForeclosuresSale.com.

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With 2017 coming to an end, real estate investors and homebuyers alike are taking a look back at the development of the foreclosure market over the past 10 months. They’re also turning their attention to the 2018 market, with a focus on market trends, recent changes in real estate law, and if the political landscape will have any impact.

“It’s important for real estate investors and homebuyers to have a clear understanding of the foreclosure market, as past data and current trends can have a big impact on future decisions,” said Simon Campbell, Foreclosure Specialist of Bankforeclosuressale.com. “Even when the market appears to be steady, one thing we’ve seen in the past is that things don’t always stay the same for long.”

According to ATTOM Data Solutions, a provider of publicly recorded tax, deed, mortgage and foreclosure data, there were 424,800 foreclosure filings on United States properties during the first six months of 2017, signifying a decrease of 20 percent from the same period of 2016.

While the overall national trend was a decrease in foreclosure filings, some states and cities bucked the trend with an increase in activity. Here are some key data points provided by ATTOM:

  • Eight states, along with Washington, D.C., saw a year over year increase in foreclosures during the fix six months of the year.
  • Washington, D.C. experienced the largest increase, with foreclosure activity jumping 60 percent over the previous year.
  • Of the 217 metropolitan areas included in the report, 28 experienced an increase in foreclosures, with Oklahoma City leading the way at 22 percent.
  • New Jersey had the highest foreclosure rate during the first half of the year, with 0.99 percent of properties with a foreclosure.
  • The highest metro foreclosure rates belong to Atlantic City, New Jersey at 1.71 percent of properties, followed by Trenton, Philadelphia, Chicago and Pennsylvania.

Daren Blomquist, senior vice president with ATTOM Data Solutions, added the following in regards to the market in general:

“Although foreclosures are fading overall, there has been a notable an uptick in foreclosures completed by some non-bank entities — counter to the sharp downward foreclosure trend among big banks and government-backed loans.”

2018: A Big Year for the Real Estate Market
The Great Recession finally came to an end in 2009, after millions upon millions of Americans were forced into foreclosure.

According to Fannie Mae, the waiting period following a foreclosure is seven years, with the agency noting the following: “A seven-year waiting period is required, and is measured from the completion date of the foreclosure action as reported on the credit report or other foreclosure documents provided by the borrower.”

With this seven-year period coming to an end for those who faced foreclosure toward the end of the Great Recession, there’s reason to believe that the real estate market could pick back up.

Campbell said, “There’s no way of knowing if these buyers will dip their toes into the homeowner pool once again, but the possibility is definitely there. This alone could have a big impact on the real estate market as a whole in the year to come.”

To learn more about the foreclosure listings market or to search for foreclosed homes please visit Bankforeclosuressale.com online.

Media Contact:
Simon Campbell
Email: scampbell@bankforeclosuressale.com