The deep unease experienced over more than a year of turmoil in the economy had taken its toll on the rental market in Greater Cincinnati and Northern Kentucky. Early signs of recovery are now bringing some cheer for apartment owners around Cincinnati area real estate with the latest figures pegged at less than 10 percent apartments remaining vacant in July in comparison to 12 percent at the end of 2009.
CB Richard Ellis, renowned for their real estate services, has found that rentals are showing an upswing of an average of 3 percent raking in approx. $696 per month for the proprietors. Greater Cincinnati encompassing Hyde Park and portions of Clermont County are striking it rich with increase in rentals averaging 9.6 percent more than last year. Northern Kentucky has a mixed bag with occupancy levels on the increase but rentals showing a decrease of 2.1 percent over the same time last year.
David P. Lockard, the Vice President of CB Richard Ellis, mentions that new construction has not been shown a positive growth despite rentals of multi-family housing coming back into demand. The number of new projects coming up is far and between each other with only local projects getting their hands into development of these apartment communities. Reason being, getting financing is a big hurdle with banks still dealing with their woes and not wanting to take on any unwarranted burdens upon themselves. Only by 2012 are there some expectations of stability pegged with an average 600 units being constructed to meet the increased demand versus 2008 or 2009 when it was just 400 units. This is still a far cry from 1999 to 2002 when developers were handing over 2300 multi-family apartments units per year.
Some large projects coming up backed by Atlanta based real estate developers Carters and the Dawson Co. are underway. Current @ The Banks the largest project that is ongoing with a price tag of $80 million will increase the supply of apartments by 300 units in between the area starting at the Reds stadium and finishing at the National Underground Railroad Freedom Center in downtown. The rentals that this community is expected to fetch start from $800 and signs are good since 20 percent of these are already pre-leased for delivery by spring. Fred Burns & Associates who hail from Burlington are ready to dip their fingers in the multi-family community pie adding on 144 units at a cost of $10 million dollars.
Job creation should fuel demand for rentals as people will be weary about getting back into a self-owned home concept until they have overcome their jitters regarding the Cincinnati real estate market.
(c) 2011 Taxes.
Property Rental in Greater Cincinnati on the Rise