Apartment Rentals Surge as Young Adults Find Jobs

New York, NY, July 27, 2010--Apartment rentals are surging as mounting foreclosures reduce homeownership and an improving job market is encouraging young adults to find their own places to live.

The number of occupied apartments increased by 215,000 in the 64 largest U.S. markets in the first half of the year, according to MPF Research, almost twice the units added in all of 2009 and the most since the firm began tracking the data in 1992.

The vacancy rate declined to 6.6% last month from 8.2% in December.

New jobs are the biggest driver of apartment occupancy. Employers began hiring again in January, adding an average of 147,000 jobs a month through June, according to the Labor Department.

Employment for people 20 to 29 years old -- a key group for landlords -- rose in May and June on a year-over-year basis for the first time since the end of 2007.