As apartment demand continues to rise, landlords across the land are projected to increase their rents for the fifth consecutive year. A rise in apartment construction isn’t likely to offer relief to tenants anytime soon either, USA Today reports.
In Omaha, numerous apartment developments are expanding or in the initial stages of development. Lanoha Development has just announced its $25 million plan for an apartment and commercial development on the 12-acre site where Millard Lumber Co. once operated near downtown Millard.
Another developer is working on plans for a large apartment complex between the Omaha Playhouse and Crossroads Mall, while another is redeveloping the old Northern Natural Gas high-rise across Dodge Street from the Joslyn Museum. Other projects are under way at various sites across the city.
Between 2000 and 2012, apartment rents have risen 6 percent while incomes among renters have fallen 13 percent in that time period, according to a report from Apartment List, a rental housing website that adjusts for inflation. The national vacancy rate for apartments has dropped from 8 percent to 4.1 percent from 2009 to 2013, according to Reis, a commercial real estate data provider.
More apartment buildings are under construction nationwide to respond to rising demand. Reis experts expect a stronger job market will push more people out of living with their parents or being roommates and increase rental demand. Reis predicts the effective apartments will rise 3.3 percent this year to an average $1,118 nationwide.
If you want in on the action, we can help you acquire land, buildings for rental conversion and even construction or renovation work. All you need do is contact Landmark Group.
David J. Paladino CPM, MSRED
President, Landmark Group 402-672-6566
2702 Douglas St. Omaha NE 68131