Apartment market strengthens in 2011

The apartment market improved last year.

The Institute of Real Estate Management noted in a report that the apartment industry has tipped in favor of property management companies.

The report, "Income/Expense Analysis: Conventional Apartments," showed that the price of gross rentable space rose between 0.2 percent and 8.3 percent for elevator, low-rise apartments with 24 or fewer units and garden units in 2011 when compared to 2011's figures. Only rents for low-rise properties with more than 24 units declined in 2011, for a total 1.5 percent decline.

In addition, the three apartment types with positive returns experienced a net operating income gain between 2.9 percent and 7.5 percent when compared to 2011, Multi-Housing News reported, citing the report.

Garden properties had the most significant vacancy figure, at 6.7 percent, while small low-rise properties were at 5.8 percent, the report said. Large low-rise properties had a vacancy rate of 5.6 percent and elevator properties had the lowest rate, of approximately 4.8 percent.

The report added that elevator properties had the lowest turnover of any examined, at 39.8 percent. Garden buildings experienced the highest turnover, totaling 51.9 percent.

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