We saw a lot of markets hit an all-time low during the housing crash. However, now many of those markets are growing exponentially. Due to a steady job growth, there is a greater need for apartments. We will take a look at the top six markets that have bounced back. Notably, many of them are located in the Sun Belt. The markets that have recovered the most include Phoenix, Las Vegas, Atlanta, Sacramento, Orlando, and California’s Inland Empire.
Las Vegas was by far hit the hardest during the housing crisis and it is taking a little longer to get back above water. Nevada’s unemployment rate is 6.4 percent, slightly up, but still struggling. One in four homeowners in the Las Vegas area owes more to the bank than his or her home is worth, according to RealtyTrac. That makes Las Vegas the third-highest rate in the nation, behind Cleveland and Akron, Ohio. Las Vegas is slowly recovering, but, they are still not where they once were, back in 2005 when people lined up for open houses to purchase homes having to put nothing down. It is definitely a different market today. It is slowly climbing at 6.4 percent annually.
Phoenix is on the up-swing and things are looking up since the crash in the housing market. The economic growth is making a turn in the right direction and it all stems from three factors: job growth, which then drives population growth, which then drives housing growth. Rents on average fell 14 percent during the housing crash. However, during this recovery phase, Phoenix is seeing a growth of 25.3 percent per year.
Atlanta’s housing market is seeing the other side of what was once a decimated market. Right now, you can buy homes for basically less than it costs to build them. During the housing crash, rents fell 9.3 percent for apartments. Since then, Atlanta’s rents have risen by 25.3 percent. There is also a good amount of new apartment construction in Atlanta neighborhoods.
Good news for the capital of our state, it has fully recovered since the housing crash. Don’t be mistaken – it was in deep crisis as well during the recession. But, with improved wages, low interest rates, and job security, buyers are being brought back to the market and people are needing housing whether they are looking to buy or rent. We saw an increase of 11.6 percent over a twelve-month period for rents. It’s getting HOT in Sacramento!
The demand for apartments is growing stronger since the recession. Since the recovery, Orlando has seen a 23.7 percent rise in apartment rents. They are really seeing the other side of that 9.0 percent drop that occurred during the crash. Orlando is seeing the best rent growth since 2006. The local economy is driving the overall momentum. Large construction volume is underway in the area and assuming the job market stays strong, Orlando will keep on their steady incline of recovery.
California’s Inland Empire
The housing market here is slowly making it’s way back after the crash. Good news for the apartment market is that residual fear from the recession is causing many people to rent rather than buy. That explains the numbers being much higher now than they were before the housing crash. Rents have risen 25.3 percent since the boom.