Akron and Canton Market Overview
Akron’s apartment demand has remained resilient. Due to strong demand and limited supply, vacancies fell to their lowest level since 2017, averaging 3.9 percent. Renter preferences have shifted since the pandemic; space and affordability are now the priority over location and access to downtown amenities. Supply is also a factor in healthy leasing activity, with over 300 units added to the market this year following several years of limited developments. Leasing activity remains on solid footing and totals more than 710,000 square feet over the past year, or about 10 percent above the annual average in the three years leading up to the pandemic.
Canton apartment rents have risen at a 4.7 percent annual rate during the fourth quarter of 2022. Over the past three years, rent growth has been posted at an average yearly rate of 3.4 percent. 190 units have been developed over the past three years (a 1.6 percent increase in inventory); however, nothing is currently in the works. Vacancies in the metro were slightly lower than the 10-year average in the fourth quarter of 2022 but remained essentially flat over the previous four quarters.
Vacancy & Rent & Construction
The Market Rent Per Unit by Bedroom graph displays the steady incline of rent rates. The daily asking rent has increased since 2017 and is currently $1.13 per square foot. Development activity is picking up, with almost 500 units under construction, accounting for 1.3% of total inventory. Experts have forecasted several more developments over the next four years, a good time for growth for the city of Akron.
The Market Rent Per Unit by Bedroom has been relatively stable over time, with only a slight increase in 2020. The market rent for a three-bedroom is now a little over $1,200. The daily asking rent is currently just under $0.96 per square foot in Canton. Canton’s vacancy rate, in general, has been relatively stable over the years and experts predict that it will continue to plateau in the next four years. Canton had about 190 developments in 2021 but has seen just under 20 during 2020, and there are currently no new developments underway. Development plans are expected to pick up sometime in 2024, but nothing as high as in 2021.
Sales
Investor activity has slowed significantly over the last year in Akron, with volume totaling $45.8 million over the previous 12-month period. The most expensive sale in the last year occurred in February when 401 Lofts sold for $23 million ($123,000/unit). Richland Residential sold the 2013-built property for a 5.5 percent cap rate. At the time of the sale, the property was occupied entirely. Last year’s top sale was part of a $390 million portfolio of 56 properties.
In the last 12 months, Canton’s midsized apartment metro had 24 market-rate apartment sales comparable to many of its peers. The market saw more of the same, with deal flow remaining consistent with the previous five years. Over the last five years, annual sales volume has averaged $15.3 million, with a 12-month high in investment volume of $24.1 million.
