Because housing is being built at a slower rate than new household are being formed, there is no reason to believe that there will be overbuilding, even as apartment complexes continue to come out of the ground, said David Stockert, president and CEO of Atlanta-based Post Properties.
Stockert said new construction of multi-family housing is starting to plateau nationally, and in many of the markets where Post operates.
“I’m very encouraged by the state of the overall housing market,” he said in a conference call this week.
Going forward, Stockert expects rent increases to more closely align with residents’ income growth. For the past several years, the increases have been larger. Move-outs due to the price of an apartment are down 1 percent in the second quarter from the same quarter a year ago, executives said.
Apartment residents who leave to buy homes were up slightly, to 15 percent from 13 percent in the same quarter last year.
Post’s profits were $26.6 million in the quarter, a 32 percent increase over the $20.2 million it made in the second quarter a year ago. In Atlanta, Post brought in $21.4 million in rents and through other means, a 5.3 percent increase over its performance last year. In the cities in which it operates, rental and other revenues increased 4 percent on average.
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