New apartments with high end amenities like the Water Street District in downtown Dayton have been almost completely occupied since they were completed, with developers saying the demand for luxury rentals is coming from downsizing empty nesters and baby boomers, as well as young professionals who are choosing to rent instead of own.
While almost all of the 800 local new apartment units were snapped up as they were built, Colliers said the coming arrival of 1,475 new units will test how deep the demand for rentals goes in the Dayton region.
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Despite demand for rentals ticking up in the Dayton area, with occupancy up from 96.3 percent around the end of 2016, rents aren’t significantly rising.
“The year-over-year increase in average rent was only 1.0 percent, well below the five-year average of 2.4 percent,” the report said.
If demand doesn’t keep pace with the sudden influx of new apartments in the Dayton region, then Colliers said rents may fall even further.
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