Two Gulf Coast Beach Towns Performing Well
Like most small beach towns across the nation, Pensacola and Mobile have enjoyed solid apartment market performances recently. Located about 60 miles apart, Pensacola and Mobile both boast beachside locations along the Gulf Coast, a university presence, and an employment base structured in military, shipping and/or manufacturing. Effective asking prices were up by a staggering 17.7% in Mobile in the year-ending August, while rent hikes were also solid at 15.6% in Pensacola. These performances were notably ahead of the national average, which was at an all-time high of 10.3% in August. In comparison, annual price growth in both markets has averaged at around 3% to 4% in the past five years, while the national norm was about 2.5% during that time frame. Occupancy in Pensacola came in at 97.9% in August, while the rate in Mobile was essentially in line with the U.S. average at 97.2%.