Apartment Rents Jump
Rents jumped across Southern California last year as vacancy rates continued tightening, partially because of the housing market slump. Lusk Center for Real Estate at the University of Southern California say rates are topped out in So Cal.
Meanwhile, rents in the county increased an annual 5.6 percent in 2006, the study said. And steady gains in the overall economy continue to improve the fundamentals for the region's apartment market.
Occupancy rates to average 96 percent across the five-county region this year.she added that when arket's occupancy rate is higher than 95 percent, it is at capacity.
"As economic activity expands across the region, steady job growth and high home prices bode well for landlords," Conway said. "Strong investor interest and favorable long-term interest rates should help sustain sales activity of apartment buildings in all markets even as more units are being built."
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