Rental housing shortage eases

RENT RELIEF? According to two different companies that monitor real estate market statistics, Asheville has more rental housing available now than it did at the end of 2014, when a survey concluded that the area's rental vacancy rate was below 1 percent. Photo by Virginia Daffron

Third-quarter data released by two real estate research firms show an improving environment for Asheville metro area renters. After a late 2014 report showed a rental vacancy rate of less than 1 percent in Asheville and Buncombe County, local officials and renters have frequently described the area’s shortage of affordable housing as a crisis. Any easing of the rental market is likely to be received as welcome news — except perhaps by landlords.

In 2016, rent-price inflation slowed, and rental vacancy rates increased, according to Reis, a New York-based company, and Axiometrics Inc., of Dallas.

Asking monthly rental-rate increases dipped to 0.5 percent during this year’s third quarter from 2 percent during the second quarter, according to a Reis report on the Asheville metro area.

The median asking rent in Buncombe, Haywood, Henderson and Madison counties rose to $1,044 in the third quarter over $1,016 in the previous quarter, Reis researchers wrote.

Reis surveyed all units — from studio to multibedroom apartments — in 58 multifamily developments to determine its figures.

Using a different methodology, Axiometrics researchers also found rent inflation dropped in this year’s third quarter from the previous quarter.

The effective monthly rent increase fell to 3 percent from 3.1 percent between the two quarters.

Effective rental rates include any discounts or concessions landlords provide tenants. Asking rental rates do not.

The metro’s average effective monthly rent climbed to $1,097 during the third quarter over $1,080 in the second quarter.

Axiometrics does not provide a median figure. Its conclusions are based on a survey of 26 multifamily developments in the metro area.

The rental rates reported by both firms fall within the range that the January 2015 Bowen report found during its late 2014 examination of rental properties in Buncombe, Henderson, Madison and Transylvania counties. Median rents for market-rate apartments ranged from $832 to $3,300 and $583 to $1,187 for tax-credit units, according to researchers from Bowen National Research, an Ohio-based real estate market consulting firm.

Asheville officials paid Bowen $29,750 for that report.

The Bowen assessment also concluded that a less than 1 percent rental-unit vacancy rate existed in those four counties.
Bowen researchers determined that Asheville’s rental vacancy rate and Buncombe County’s rental vacancy rate also were below 1 percent.

But the Reis data for 2016 show a 6.8 percent vacancy rate during the second and third quarters and 7 percent for all of this year’s quarters.

Vacancy rates were lower during this year’s first three quarters, according to Axiometrics. The rate dropped to 4.1 percent in the third quarter from 4.5 percent in the second. It stood at 4.8 percent during the first. The company’s report did not provide a percentage for 2016’s first three quarters combined.

Asheville officials plan to release an updated report from Bowen, focused exclusively on the rental landscape in Asheville and Buncombe County, before the year’s end, said Jeff Staudinger, the city’s assistant director of community and economic development. The city paid the company $4,500 for that work, Staudinger said.

SHARE

Thanks for reading through to the end…

We share your inclination to get the whole story. For the past 25 years, Xpress has been committed to in-depth, balanced reporting about the greater Asheville area. We want everyone to have access to our stories. That’s a big part of why we've never charged for the paper or put up a paywall.

We’re pretty sure that you know journalism faces big challenges these days. Advertising no longer pays the whole cost. Media outlets around the country are asking their readers to chip in. Xpress needs help, too. We hope you’ll consider signing up to be a member of Xpress. For as little as $5 a month — the cost of a craft beer or kombucha — you can help keep local journalism strong. It only takes a moment.

Before you comment

The comments section is here to provide a platform for civil dialogue on the issues we face together as a local community. Xpress is committed to offering this platform for all voices, but when the tone of the discussion gets nasty or strays off topic, we believe many people choose not to participate. Xpress editors are determined to moderate comments to ensure a constructive interchange is maintained. All comments judged not to be in keeping with the spirit of civil discourse will be removed and repeat violators will be banned. See here for our terms of service. Thank you for being part of this effort to promote respectful discussion.

2 thoughts on “Rental housing shortage eases

  1. AVL OG

    But… how am I going to complain about being no places to move to and rent skyrocketing online? Does that mean I have to throw out my “Don’t Move to Asheville” sticker?

    • boatrocker

      No, silly. All that means is that the rental shortage has eased- chin up.
      Buncombe County still has the highest rental rates in NC, for our wages not keeping up.

      As for the bumper sticker, maybe replace it with the new Asheville-sanctioned sticker-

      “Don’t move here, just own a second home here, encourage others to visit and treat our city like a hippie version of Westworld, and never tip as you’ll never see those fools again- oh AND you might see a naked booby downtown once per year for a protest!”- arguably difficult to fit on a bumper sticker, but
      a local UNCA media studies undergrad volunteer for the Chamber of Commerce designed it.

Leave a Reply

To leave a reply you may Login with your Mountain Xpress account, connect socially or enter your name and e-mail. Your e-mail address will not be published. All fields are required.