Aug
31

Savannah Apartment Market Snapshot

By

More than one-fourth of the region’s apartments have been built in the past four years pushing the vacancy rate ever higher. However, during the past year, the development pipeline slowed considerably allowing the vacancy rate to begin to recover from 13.7% as of July 2009 to 12% as of July 2010. Demand was at its highest level in over six years, which also made a significant impact.

The market added over 800 new units in the past year and only two communities are currently under construction in the region. There are four additional proposed projects, however, developers have put many of these on hold until market conditions improve. The Bluffton and Savannah-West submarkets have been the most active in terms of new development. Many communities continue to offer concession in reaction to higher vacancy rates. Same-store rents fell again last year resulting in a lower overall average rent of $778.

“The lack of new development will allow the vacancy rate to continue to improve into the coming year, however, long term recovery will be dependent on how quickly the overall economy rebounds from the economic downturn” reports Kelly Reddecliff, a multi-family analyst at Real Data.
Categories : Bluffton, Savannah

Comments are closed.