Class B apartment communities are outperforming Class A and C communities in occupancy and rent growth. New data show that occupancy rates at Class B apartment have remained at or above 95 percent since August 2014, while Class A rates dropped to almost 94.5 percent in January 2015 and Class C rates remained below the 95 percent mark until March 2015.
Rent growth for Class B properties has remained above 5.5 percent since February 2015. Class C properties had been experiencing similar growth up until then, but the gap has since widened. Class A properties spiked in June 2015 and have begun to approach the 5 percent growth mark.
Experts suspect that renters are looking for more affordable apartment homes, which is why Class B and C apartment communities are experiencing higher rent growth. But additional supply could stagnate occupancy rates and rents in the months ahead.
This article was originally published in the National Apartment Association and can be found HERE.