Apartments Expensive, Hard to Find
Report reinforces critical need for adding affordable rental units
CBRE | Hubbell Commercial’s 2013 report on area apartment costs and vacancies is out and shows that in just a year the average monthly rent for a two bedroom apartment in the metro area has risen from $734.00 to $758.00. During the same period the number of vacant apartments for rent has fallen from 5.7% to 4.6% of the total market. These latest figures are bad news for low and moderate income families seeking affordable housing.
The housing market was drastically altered by the last boom and bust. With easily available sub-prime financing low and moderate income households were finding affordable housing options through homeownership. The resulting recession and credit crunch has closed purchase as an option for almost all low and moderate income families. Those folks are now left to navigate a rental market with an inadequate supply to meet demand and landlords who now have the option to be choosy about their tenant’s credit scores and salaries.
The Polk County Housing Trust Fund is quickly deploying its financial resources toward adding additional affordable rental units to the area inventory. In the last two fiscal years the PCHTF has helped fund the creation or preservation of 173 affordable rental units.
The good news from the report is that in 2013 over 2,100 additional units are somewhere in the planning stages and of those, 320 are tagged as affordable. The strong demand of the last few years has been an incentive for developers to bring more units to market. It is hoped that these new units will slow the trend of year over year rent increases.
The entire CBRE | Hubbell Commercial report can be found by following the link below: