U.S. Apartment Demand Hits Five-Year High
U.S. apartment demand spiked during 2nd quarter 2019. Absorption totaled 155,515 units in the quarter, a five-year high that registered 11% above 2018’s 2nd quarter. The recent quarterly performance followed two quarters of slower-than-usual leasing activity in the cold weather months of late 2018 and early 2019. Over the past five years, demand averaged around 74,000 units each quarter. However, leasing activity is typically heightened during 2nd quarter, with that quarter averaging demand for roughly 141,000 units over the past five years. With demand in 2019’s 2nd quarter more than double new supply coming online, the nation’s occupancy rate climbed 0.6 points quarter-over-quarter to 95.8%, above the five-year average of 95.2%.