Apartment vacancies should fall below 5 percent this year in Cincinnati, according to the latest research from Marcus & Millichap. That’s good news for landlords in the city, who should be able to raise their monthly asking rents without chasing away their tenants.
The multi-family market remains the healthiest of all the commercial real estate sectors. And that’s the case in Cincinnati, too.
According to Marcus & Millichap, multi-family vacancy rates should fall to 4.7 percent this year, a dip of 60 basis points. This follows a dip of 140 basis points in 2011. Marcus & Millichap’s researchers point to a drop in demand for single-family homes — not surprising given the continuing fall in housing values — and an uptick in employment for this fall in vacancies.
Marcus predicts, too, that apartment rents will reach new highs in Cincinnati in 2012. According to the company’s figures, asking rents should increase 2 percent in 2012 to $726 a month. Effective rents should jump 2.4 percent to $692 a month.
And if you’re looking for new construction in the city, Marcus & Millichap has additional good news. According to the company, multi-family construction in Cincinnati will reach a nine-year high in 2012 as builders add 1,000 new units to the market. That’s signficantly higher than the 370 new multi-family units that hit Cincinnati last year.
And it’s yet another sign that multi-family, in just about every Midwest market, continues to thrive.
– Dan Rafter