The serfs have all the power – until the market shapes up.
In a move to keep tenants in their rented rooms and attract new residents in the contracting economy, landlords are asking for less and are considering contract negotiations, according to a new report from Reis, an apartment research group based in New York.
The report shows that nationwide, rent prices are decreasing, although less than 1 percent in most places. The report is released quarterly.
Research on rent prices by Reis is performed daily, said Kyle McLaughlin, a financial analyst for the company. Apartment surveyors call complexes around the nation and ask about the monthly rent and if the landlord has made any special offers which would lessen rent in the long run (called effective rent), such as a month of free rent for signing a lease.
”There’s a general pinch across the U.S.,” he said. “Occupancy rate is plummeting, vacancy is rising and landlords are offering concessions.”
The data show only 20 metro areas out of 169 had positive rent growth; Omaha was one of them.
McLaughlin laughed.
“Nebraska is not off our radar,” he said. “We cover Omaha and Lincoln.” (Lincoln data was not included in the city-by-city breakdown.) Omaha had a 3.9 percent rate increase from the fourth quarter of 2007 to the fourth quarter of 2008 and a vacancy rate of 5.6 percent.
In a Jan. 4 article, the Lincoln Journal Star said Nebraska is not yet in a recession. Places hit hard by the recession or located on the coasts are experiencing larger price declines this financial quarter from fall and winter of 2008: rent in New York decreased by 1.8 percent; Ventura County (California) decreased by 1.2 percent; Miami decreased by 1.3 percent.
The vacancy rate at The View on 301 W. Charleston St. in Lincoln is 5.4 percent which is “really good,” said Brandi Rolfe, leasing manager for The View. There, the average price for a room is $328.16.
Rolfe said the rates are fixed and are not expected to decrease. The View is owned by American Campus Communities, which owns properties around the nation. Corporately set rates are competitive.
“Prices are based off the market and other apartments in the area,” Rolfe said.
McLaughlin said Reis predicted rates will continue to fall through 2009; any growth that occurs in 2010 will be unable to offset 2009’s losses.
“Tenants have the upper hand on landlords,” he said. “They need to rent out units. This gives tenants more leeway in forceful negotiations. Hopefully they’ll get a better deal than they did last year.”
kiahhaslett@dailynebraskan.com
Falling economy makes good deal for renters
Published: Wednesday, February 4, 2009
Updated: Wednesday, February 4, 2009
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