What’s Up with Apartments in Missoula?
A survey of over 5,600 market rate apartment units in Missoula found a vacancy rate of 1.2%. The survey also found increasing rents and no incentives. “Last year at this same time, the vacancy rate was 3.3%,” said Matt Mellott of Sterling CRE Advisors. “Everyone in the rental market feels a 2% drop in vacancy, whether that means paying more for rent or struggling to find a place when you need to move.”
Sterling CRE Advisors performs a market survey of apartments in Missoula and their vacancy every quarter. To put a 1.2% vacancy rate in perspective, cities like San Francisco, New York and Los Angeles register long-term vacancy rates below 4%. “A vacancy rate this low is concerning,” said Nick Chaussee, Sterling CRE Advisor. “Through a commercial real estate lens, there is a huge amount of opportunity for development in Missoula. But that’s in the long range. The reality right now is that rents are rising fast and apartments are scarce. A clear path forward for developers is key to righting the ship.”
Contact Nick Chaussee for more info.