Greensboro, Winston Salem, North Carolina

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Market Summary, October, 2006
The vacancy rate has improved to 8.1%. Demand continues to be strong with 1,467 units absorbed over the past twelve months and 1,280 units absorbed over the previous twelve months. Communities that are six to fifteen years in age currently hold the lowest vacancy rate in the market at 6.4%. Although there are only 793 units currently under construction and only 400 units started in the past six months, development in the Triad is gearing up with nearly 3,185 units proposed. More than half of these planned units are expected to start construction in the first half of 2007. Developers added 1,068 new units to the overall supply in the last twelve months.

The average rental rate is $616. One bedroom rents average $543, two bedroom rents are $624 and three bedroom rents are $813. Same-store rents have increased $10.63 in the last twelve months. The Greensboro-Southwest submarket continues to command the highest rental rate in the Triad at $737 per month. Based on the number of units currently under construction, vacancy rates should improve to 6% to 7% in the next twelve months. Rental rates should continue to increase as vacancy rates steadily improve.

Economic Overview
According to the North Carolina Employment Security Commission, the combined statistical area for the Triad gained 13,776 jobs in the past twelve months. The unemployment rate is currently 4.5%.

The Triad economy continues to grow. Large employers, such as Dell, are adding large numbers of jobs and tapping into the area’s experienced workforce. In addition to employment gains, rising mortgage rates should help fuel demand for apartments.

Market Data Information Source: © October, 2006 Real Data Aptindex