{"id":12157,"date":"2014-12-30T05:00:45","date_gmt":"2014-12-30T13:00:45","guid":{"rendered":"http:\/\/www.yardi.com\/blog\/?p=12157"},"modified":"2020-12-24T02:58:02","modified_gmt":"2020-12-24T10:58:02","slug":"middle-market-growth","status":"publish","type":"post","link":"https:\/\/www.yardi.com\/blog\/middle-market-growth\/","title":{"rendered":"Middle Market Growth"},"content":{"rendered":"

NAAHQ<\/a> reports that apartment revenues in the nation\u2019s top 100 largest metros currently exceed pre-recession levels by nearly 14 percent, with considerations for rising rents and the recovery in occupancy. While the usual top performers remain strong, suburban markets are showing a healthy recovery and bright future.\"shutterstock_98585609\"<\/p>\n

Middle-markets<\/a> are giving their high-end counterparts stiff competition. While individual urban locations can boast the highest new construction rates, many cities\u2019 suburbs combine to exceed the growth of urban cores.<\/p>\n

Suburban middle-market communities, which are the vast majority of apartment inventory, and new luxury apartment communities present appealing options for a growing number of renters, particularly young singles and families. The strength of middle market performance is projected to continue well into 2015 since the factors contributing to their success are unlikely to change.<\/p>\n

Metropolitan zip codes are still desirable to many but high rents have driven a large pool of renters to the more moderate prices of the suburbs. Secondly, homeownership isn\u2019t a viable option for most of these renters, whose incomes do not support the rising interest rates, utilities, and maintenance costs of a single-family property. Lastly, vacancy rates are low for middle-market and top-tier communities in the suburbs, resulting in less horizontal movement for renters. With occupancy at 95.8 percent, owners can receive top-dollar rents for available units with very little room for competitive pricing within comparable properties.<\/p>\n

But not all suburbs are flourishing equally. Renters who seek middle-market properties abandon the city limits with a few trade-offs in mind:<\/p>\n