Supply and Demand
Apartment List recently released a report that showed that Greensboro, and other Triad cities, are among the best markets in the country in terms of rent growth. The Triad Business Journal reached out to find out why and here's an excerpt from the resulting article:
Apartment rents in Greensboro grew .5% month over month in February, and more importantly 8.3 percent versus 12 months earlier, which ranks the Gate City fifth among the 100 largest cities in the U.S., according to research by national research firm Apartment List. By comparison, apartment rental rates slipped by .8 percent over the past 12 months nationally, while increasing 1.6 percent across North Carolina.
Meanwhile, Winston-Salem is also seeing significant rental rate growth, ranking third among North Carolina’s largest cities with 1.9 percent change in February vs. January and 7.2 percent year over year. High Point, with 1.1 percent month over month growth and 5.6 percent year-over-year growth, is in the middle of the pack, ranking ninth out of 18 cities across the state in the rankings.
“It really comes down to supply and demand,” said Jon Lowder, executive director of the Piedmont Triad Apartment Association. “We have seen some pretty decent growth in population in the Triad, and the rate of construction has never caught up since the recession. It’s an extension of a long-term trend.”...
And as rental rates continue to climb, so does the price that investors are paying to acquire local properties. Triad Business Journal has noted several deals of late where acquirers are paying double or even triple the price paid a few years earlier. Mill Creek Flats in Winston-Salem sold Friday for $21.1 million, 80% more than it sold for in 2016; 2200 Midtown in Greensboro went for $6.25 million last week, more than three times its sales price in 2105; and Margate on Cone in Greensboro sold for $15.3 million late last year, a 50% increase over its 2018 sales price.