Apartment landlords in the USA are seeing a surge in rental demand as mounting foreclosures reduce homeownership, whilst an improving job market encourages young adults to find their own home.

The number of occupied apartments increased by 215,000 in the 64 largest markets in the USA in the first half of the year, according to MPF Research. Thats almost twice the units added in all of 2009 and the most since the firm began tracking the data in 1992.

The vacancy rate declined to 6.6% in June from 8.2% in December. "Overall demand is pretty stunningly strong in the first half," said Greg Willett, a vice-president at the Carrollton ( Tex.) firm.

Actual achieved rents by landlords increased by 1.4% in the largest regional markets in USA in the first half of the year, according to MPF Research, who are forecasting that rents may rise 4% to 6% in both 2011 and 2012.