According to our 2014 Apartment Market Survey, the Dayton apartment market remained in the expanding phase of the real estate market cycle throughout 2013 and into 2014. The overall vacancy rate for the apartment market dropped to 6.56% for the Dayton Area and to 6.35% for the region. This year’s vacancy rate is down from last year’s figures of 8.65% and 8.10%, respectively.Positive absorption trends were observed in both the Dayton Area and Dayton Regional markets while 636 units were absorbed in the Dayton Area and 674 units in the Dayton Regional markets.
The Dayton CBD market remains the area’s tightest market with a vacancy rate at 3.57%, followed by the Dayton East, North and South markets. The regional market was led by the Upper Valley market which illustrated a vacancy rate at 1.90%.
Further in 2014, the apartment market continues to be the most sought after real estate investment. According to RealtyRates.com, the average cap rate through the 1st quarter of 2014 was 8.34%. The North Central regional market from the same report reflected an average cap rate at 9.34% for all class types. According to RERC Real Estate Flash Report Summary, 2014 cap rates ranged from 4.0% to 6.5%, a survey composite from major markets and for Class A investment grade properties.