West Coast Rent Growth and Occupancy Ahead of National Norms

The nation’s West Coast apartment markets in general saw better rent growth and occupancy performance than most other regions recently. The West Coast led the nation for rent growth in 3rd quarter, with prices climbing 0.2% during the July to September time frame. Annually, rents were up 0.6%, compared to an average rent cut of 0.1% on the national level. Inspiring rent growth, occupancy across West Coast markets averaged 95.8% in 3rd quarter, also ahead of the U.S. norm of 95.4%. In fact, only two West Coast markets – Fresno and Salinas – saw occupancy decline over the past year. Despite those setbacks, occupancy rates in those two markets remained above the 96% mark. While demand has been moderate in the West Coast region, inventory growth here has been pacing well behind the U.S. average. Looking ahead, apartments under construction in the U.S. are expected to grow the national existing base by 2.6%, while the West Coast is scheduled to add another 1.7% to inventory.

For more information on the state of West Coast apartment markets, including forecasts, watch the webcast Market Intelligence: Q4 California/Pacific Northwest Update.