Pricing Pressure

Home Affordability Will Delay Rent Recovery in Many Markets.

10 MIN READ

Second-Tier Markets* Nashville, Tenn.
Orange County, Calif.
Albuquerque, N.M.
Louisville, Ky.
Raleigh, N.C.
Riverside, Calif.
Tucson, Ariz.
Memphis, Tenn.
Portland, Ore.
St. Louis
Tampa, Fla.
Miami
Charlotte, N.C.
San Antonio

Revenue Growth Projected Through 2004: Under 3 percent

The typical market in the second tier of performers already has a competitive leasing environment. But an improving job picture should produce enough demand to roughly meet moderate ongoing construction and allow rent concessions to ebb a little. Thus, revenues should inch upward – they are projected to rise less than 3 percent through 2004.

Notable Markets: Riverside, Calif. and Miami. These two metros don’t fit the prototype for second-tier performers. While they held up much better than most during the past couple of years, the near-term outlook is not as strong because of increased construction activity, particularly in Miami.

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