Despite high demand that will seemingly continue to increase as 2012 progresses, a report by TransUnion finds rental property prices were steady in the fourth quarter of last year.
The average rent nationwide between October and December was $820 per month - a decline of $11 from the same period a year earlier. Conversely, though, the average deposit jumped from $269 in the final three months of 2010 to $284 last quarter.
"We've seen greater demand for apartments over the past year, but it hasn't exactly translated into significantly higher monthly rental payments for consumers," said Steve Roe, TransUnion's vice president of sales for the rental screening business unit. "This is likely a direct correlation to our economy today, with unemployment remaining stubbornly high."
One market TransUnion singled out that epitomizes the rent hike during the three-month period is the Denver apartment sector. Real estate records for the metro area show the average rent improved from $777 to $857 year-to-year in the fourth quarter.
The apartment market is projected to lead the overall housing sector recovery throughout this year, a National Mutli Housing Council survey notes. NMHC chief economist Mark Obrinsky stated investors remain interested in purchasing multifamily properties due to the persisting demand for rentals.