This article is called “Apartment Rents Edge Higher” I need help with a discussi

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This article is called “Apartment Rents Edge Higher” I need help with a discussion on this: They want me to: artment Rents Edge H lav/pid-61635-dt-forum-rid-5941694-1/courses/201830-30052-EC0110WY1/Apartment THE WAL STREET JOURNAL Apartment Rents Edge Higher Third-quarter prices rose 2.9% from a year earlier, but tenants can still find deals in major metro areas By Laura Kusisto Sept 26, 2018 5:30 a.m. ET in major metro areas across the US. as landlords brace for more supply in the months ahead Apartment rents rose 2.9% in the third quarter from a year earlier, up from 25% annual rent growth in the second quarter, according to real estate analytics firm Real Page Inc. A strong economy with better wage growth helped boost demand for apartments. So did a weak home-sales market, as tight supply may have prompted more renters to put off buying There definitely doesn't seem to be the pressure to buy that was there a little bit said Greg Willett, chief economist at RealPage. The rental market has still slowed significantly from a few years ago, when rents grew by 52% in the third quarter of 2015. ButMr. willet said that "an upward blip rather than a downward blip" shows at least that the slowdown isn't accelerating quarter from 95.4% in the second quarter, according to RealPage. The share of occupied apartments during the third quarter rose to 95.8% in the third Economists had expected the third quarter, which is typically weaker than the busy spring leasing season, to be even weaker than the second quarter. The stronger-than-usual fall market is good news for landlords, but Mr. Willett cautioned that the next shesix months will still be challenging with some 150,000 units hit ting during the winter months when leasing is typically sluggish Finding Bottom i "It's still going to be tough to lease up those units, he sa In Oakland, Calif., developers are bracing for more than 6,000 new units to hit the market in the coming months John Protopappas, president and chief executive of Oakland-based Madison Park Financial Corp, said that is the most new supply the area has seen in his 35-year career. We're expecting it [the market] to get very soft, he said Mr. Protopappas said he recently leased apartments in a 162 unit building for 15% to 20% under market rate.-we just wanted to get ahead of this," he said. His buildings have been offering four to six weeks of free rent, and he said owners will likely have to increase that to eight weeks markets in the Northeast and West during the early years of the up. Rents grew 66% in Las Vegas and The strongest rental markets remained concentrated in the Sunbelt, which lagged behind recovery but are now catchin % in Orlando, Fla. in the third quarter compare a year ago winn contrast, the worst marketsin the country are places that were once some of the hottest markets in the country and where developers have flocked to build new supply. Those include Nashville, Tenn. at 1.8% annualrent growth and Sitattle New York and Portland, Ore., which all had 1.7% annual rent growth. The apartment vacancy rate increased to 4.8% in the third quarter from 4.7% in the prior 'according to Reis Inc. Meanwhile, the averages rent increased 4.2% from a year ear ter, larbara Byrne Denham, a senior economist at Reis attributed stabilization in the rental t to the tax bill that passidt last December That bill almost doubled the standard d

Explanation / Answer

Apartment rents edged higher in the third quarter

Demand determinants

Supply determinants

Increase in supply of apartments:

Increase in supply of 150,000 new units hitting the market during winter season when leasing is   sluggish. In Oakland, Calif. Developers are bracing for more than 6000 units to hit the market. Increase in supply of apartments has led to the rental market going soft.

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