The Capital Region’s multi-family market is rebounding from the negative effects seen from the housing boom in the past several years. Throughout this period, the apartment market experienced declining occupancy levels and minimal rental increases. The multi-family market is now beginning to rebound.

According to the survey of management offices of the Greater Harrisburg’s apartment complexes of 24 units or greater, overall occupancy levels have risen to 96.2%. This represents an increase of 1.3% from our previous 2004 market survey.

Cumberland County
Rental rates for 2 bedroom apartments average $696 per month, an increase of 8.6% since 2004. The occupancy level in Cumberland County is 96.1%, just slightly below Dauphin County.

Dauphin County
Dauphin County has shown the greatest positive progress. It has outpaced Cumberland County with a 1.8% occupancy rate increase bringing it to 96.2%. Along with this increase, Dauphin County apartment owners have continued to push rental rates upward more aggressively than Cumberland County. Two Bedroom units have increased by 8.6% since 2004, placing the average unit at $759 per month. Aside from minimal development along the Route 39 corridor, there has been minimal development in Dauphin County over the past several years.

Outlook
The anticipated positive trends are expected to continue due to the softened residential market. Due to increasing construction costs and a lack of properly zoned land, there has been minimal construction in the Capital Region. With the increase in occupancy as a result of the softened market, the relatively low interest rates for investors, and the lack of new construction, this is a strong market for multi-family investors.
This multi-family market study is updated on an annual basis. A total of approximately 18,743 units were surveyed. Landmark Commercial Realty, Inc. continues to recognize the demand within the multi-family market and continues to stay abreast of market trends. We look forward to assisting investors and developers throughout their acquisitions and dispositions.

For an expanded market study analysis or to obtain a market survey of available investment opportunities in the Central PA market please contact:

Chuck Heller
Associate Broker
Commercial/Investment Sales
717-731-1990 ext. 3018
717-979-5619 mobile
cheller@landmarkcr.com