(Reuters) - The U.S. apartment vacancy rate continued its steady climb, rising marginally in the second quarter from the first, real estate research firm Reis Inc REIS.O said in a report on Tuesday.
The national apartment vacancy rate rose to 4.8 percent in the second quarter from 4.7 percent in the previous quarter, with 41 of 79 metros reporting a rise in vacancy, Reis said.
“We expect construction to remain robust for the rest of 2018 and in early 2019, before completions drop off in subsequent periods,” Reis said in a statement.
“Occupancy is expected to remain positive, although vacancy rates are expected to continue to increase as new supply will outpace demand growth.”
The national average asking rents edged 1.3 percent higher and effective rent grew 1.2 percent for the quarter, the Reis report said.
Net absorption rose 1,141 units to 37,265 units in the second quarter, while construction was marginally higher at 50,360 units.
Reporting by Shravanth Vijayakumar in Bengaluru