As the demand for rental housing continues to drive the construction market, occupancy hit a record of 95.1 percent in the third quarter, the highest it has been since 2001.

Rent growth also posed strong numbers in the third quarter as annualized rent growth was recorded at 4 percent, according to Dallas-based Axiometrics.

“New supply is hitting when the apartment market is already full,” Jay Denton says in a news release. “We need units for people to simply have a place to live. Because of that, landlords are not under a lot of pressure to lower rents.

Denton, senior vice president, says he wasn’t predicting a reacceleration of the apartment market this year, but the strong third quarter numbers indicate the industry’s strength.

Annualized effective rent growth in the third quarter is 70 basis points higher than the 3.3 percent growth in the second quarter, the release states.

Top 10 Rent Growth Markets for 3Q 2014

  1. Oakland, Calif. / 10.7 percent
  2. San Jose, Calif. / 10.5 percent
  3. Denver / 9.3 percent
  4. Sacramento, Calif. / 9.1 percent
  5. Atlanta / 7.5 percent
  6. Miami / 6.7 percent
  7. San Francisco, Calif. / 6.6 percent
  8. Seattle / 6.5 percent
  9. West Palm Beach, Fla. / 6.3 percent
  10. Charleston, S.C. / 5.7 percent

Lindsay Machak is an Associate Editor for Multifamily Executive. Connect with her on Twitter @LMachak.