Growing demand for apartments pushes up rents

The recent demand for apartments is welcoming to landlords, owners, and investors but may strain renters’ pockets. The Apartment List reported a 6% rise in apartments rents from 2000 to 2012 while there was a 13% decrease in renter income during the same period. Although steady job growth has encouraged people to move out on their own, rising home prices and mortgage rates, and stagnant pay are preventing people from buying houses. These factors along with many others have increased rental demand dramatically. Vacancy rates for apartments dropped to 4.1%, almost half of what it was in 2009. With lower vacancy rates, landlords have been able to raise effective rents by an average of 12%.  The largest increase in rents was in Seattle and San Francisco. With a growing population of college graduates in their prime renter years, demand for apartments will continue to increase.

 

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Nick Banks

Nick created Front Street Commercial Real Estate Group in 2002 and spent the first eight years developing and acquiring office and retail projects in South Florida as well as North Central Florida. In 2010 the focus of the firm was shifted to primarily serve third party clients and perform brokerage, property management and mortgage banking functions. Nick has personally developed and acquired nearly 200,000 square feet of office and retail properties in markets throughout Florida. Prior to founding Front Street, Nick was the Director of Finance and Dispositions for Stiles Corporation in Fort Lauderdale where he financed and sold over $500 million in commercial real estate. Before joining Stiles, Nick was an Associate Director at GE Capital Real Estate where he sourced over $200 million in financing throughout Florida. Nick is a graduate of the University of Florida with a degree in Finance and a concentration in Real Estate. He serves as a board member and current vice-chair for the United Way of North Central Florida where he also chairs the Development Committee. Nick is actively involved with the Gainesville Area Chamber of Commerce where he serves as a board member and committee member for the Council for Economic Outreach. He is also a recent graduate of Leadership Gainesville which is a year long leadership program hosted by the Chamber. He is a member of Grace United Methodist Church where he has served as finance chair and as a member of the leadership council. Nick serves as an advisory board member of the University of Florida Bergstrom Center for Real Estate Studies. Nick was recently named chair of the Gainesville committee for the North Florida chapter of Urban Land Institute (ULI). He is a licensed real estate broker in the State of Florida and is a long time member of the International Council of Shopping Centers.

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