El Paso apartments 1Q 2015: Hendricks-Berkadia
EL PASO – During the last 12 months, renters occupied 450 additional apartments in the metro area, a decrease of 58 percent from the prior 12-month period.
Despite the reduction in leasing activity, year-to-date absorption is on pace to exceed average apartment demand of 330 units from 2010 to 2014.
In the last 12 months, apartment demand exceeded completions by 60.6 percent, fueling a decrease in vacancy.
By the end of first quarter, metrowide vacancy was 7.6 percent, 30 basis points lower than the same period last year. In the prior 12-month period, the vacancy rate fell 160 basis points.
First quarter apartment completions decreased 65.1 percent year over year as 78 units were delivered at the Santi Dwellings at Monticello apartment community. Nearly 200 additional apartments are expected to be completed metrowide by year-end.
Approximately 60 percent of these additions to inventory will be in northeast El Paso, while the remainder will come online in northwest El Paso.
Permits were requested for 270 apartments in the first quarter of this year.
During the same period last year, issuance totaled six apartments. From 2010 to 2014, developers requested an average of 1,190 permits.
Year-over-year rent growth was up in first quarter of this year, the first positive annual rent growth in nine quarters. Monthly rents ascended 0.8 percent since first quarter 2014 to $794 in March.
During this time, effective rents grew 1.2 percent to $781 per month as concessions decreased from 2 percent to 1.6 percent of asking rents.
| Area | Vacancy | Average Rent | Average Rent Increase | |||
| 1Q 2015 | 1Q 2014 | 1Q 2015 | 1Q 2014 | 1Q 2015 | 1Q 2014 | |
| El Paso | 7.6% | 7.9% | $794 | $788 | 0.8% | -0.5% |
To read the full report visit the El Paso Multifamily Berkadia 1Q 2015 Report. Registration is free.
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