Updated: Wed, 08/21/2013 - 07:49

Analysts bullish on Savannah apartment rental market

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New apartment complexes are seemingly rising along every major road in Chatham County, from Victory Drive to Abercorn Street and Benton Boulevard to Chatham Parkway.

All those developers can expect strong leasing activity, a study suggests.

Apartment market research firm Real Data recently released its annual report on the Savannah-Hilton Head rental market. The area’s apartment vacancy rate stands at 5.2 percent, the lowest in a decade, despite a doubling in the number of units over that same period.

“With the current development pipeline, supply is expected to match current demand levels over the next two years,” Real Data’s researchers wrote in the report.

Real Data lists 1,308 units under construction or proposed. The actual number is closer to 1,600 units when the Legends of Chatham is figured into the supply. The project, planned for Chatham Parkway, has been approved but has yet to begin.

Real Data anticipates the vacancy rate remaining in the 5 percent range even as these units open. Recent trends support the projection: Savannah’s apartment supply has grown each of the last four years while the vacancy rate has dropped from 12 percent to 5.2 percent.

Local rental insiders are even more bullish on the apartment and rental housing market. H. George Meyers, president of the Savannah Landlords and Real Estate Investors Association, said the “rental market is as good as we’ve seen in years.

“With the amount of students we have coming in and the military members fluxing back in and the growth of manufacturers like Gulfstream, it doesn’t matter if we’re talking Pooler, downtown or the southside, the rental market is rolling right now,” said Meyers, owner of Mia Madison Properties.

Student housing is the biggest driver, Meyers said.

The One West Victory complex, under construction at the corner of Victory Drive and Bull Street, is marketing specifically to Savannah College of Art and Design students. Another midtown project, the Avenues on 61st, is also targeting SCAD.

Those complexes’ ability to attract SCAD students is likely to have a trickle down effect on other rental properties, particularly those downtown. Young professionals are likely to fill the void, Meyers said.

“We’re talking small apartments in most instances, and they’re being gobbled up,” he said. “As long as it’s in good condition, it will go.”

Rental rates are trending up and have been each of the last four years. The average rate is $858, up from $778 in 2010.

 

 

 

APARTMENT GROWTH

Approximately 1,600 apartment units are under construction or planned in Chatham County and are scheduled to open by the end of 2015.

Under Construction

Complex|Location|Units

Drayton Tower|Downtown|100*

Two Addison Place|Pooler|325

Villas at Park Avenue|Pooler|283

One West Victory|Midtown|114

Capital Club at Godley Station|Pooler|256

Avenues on 61st|Midtown|32

Planned

Complex|Location|Units

Litchfield|Southside|24

Parkside at the Highlands|Pooler|317

Legends of Chatham|Chatham Parkway|255

* Several floors of Drayton Tower are completed and already leased

 

 

SAVANNAH-HILTON HEAD RENTAL DATA HISTORICAL SUMMARY

Year|Inventory|Vacancy Rate|Average Rate|New Units completed

2004|10,690|5.2 percent|$704|N/A

2005|15,091|9.2 percent|$718|624

2006|15,450|4.8 percent|$736|-1,074

2007|14,677|9.5 percent|$764|474

2008|16,499|9.2 percent|$790|714

2009|18,094|13.7 percent|$786|1,739

2010|17,604|12 percent|$778|838

2011|18,968|5.9 percent|$817|207

2012|19,385|5.6 percent|$842|412

2013|20,333|5.2 percent|$858|335

Source: Real Data Apartment Market Research (Data for apartment communities only)

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Comments (1)

Nacho
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This shows the rising market

This shows the rising market only for apartments. Hence, Fannie Mae, the government-controlled mortgage re-packager, posted $5.1 billion in profits for April, May and June of 2012. It was also the second time since the feds took over the company that it has shown a net quarterly gain. The posting is yet more evidence that the housing market is starting to move toward stability. Source of article: https://personalmoneynetwork.com/payday-loans

 

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