New construction leads to lower apartment rents in Durham (Charlotte: apartments, rental)
Raleigh, Durham, Chapel Hill, CaryThe Triangle Area
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A market research study reveals that 30% of more than 10,000 Triangle area apartments under construction are in Durham County, and the boom in construction is leading to lower rents.
Charlotte's Real Data reports the average rental rate in Durham in January was $887, down 2.3% from six months ago.
I would presume that since the older complexes are losing renters, they would have to provide concessions to keep their tenants. This suggests to me that the current demand for new units is not keeping up with the supply coming online. Unless it gets out of hand, it will probably normalize soon and the lowered rents will be yesterday's news. If the supply continues to outstrip the demand, expect further pricing pressure on the landlords.