Staff Report

COLUMBIA -- The apartment vacancy rate in the Columbia market rose for the first time in five years. It climbed about 1% from 11.8% in October 2008 to 12.6% in April 2009, according to Real Data a Charlotte-area multi-family market research company.

In the past six months, supply increased by 493 units, while demand was down.

This is the first negative absorption in five years for the Columbia area. Average rents are $729 per month which is a decline of 2.0%, or $15.04, over the past six months. This is the first decline in rents since April 2004.

Breaking down average rents by unit type, one-bedroom units average $601 per month, two-bedroom units rent for $715 on average and three-bedroom units average $906 per month.

Apartment construction starts rose by 790 units from October 2008 to April, while the total number of units currently under-construction is up 1,348. There are another 2,845 units proposed for the market. However, development activity is expected to continue to slow as the economy remains weak.

Although the development boom for Columbia is waning, new supply is expected to continue to outpace demand until 2010, and vacancy rates are expected to remain above 12%.

July 8, 2009