Apartment Demand Moderates from Historic Peaks

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The U.S. apartment market is still logging significant apartment demand volumes, despite softening from recent historic peaks. Annual apartment absorption totaled roughly 432,900 units in the year-ending 2nd quarter 2022, according to RealPage Market Analytics. While that’s down from the multi-decade peak of about 705,980 units absorbed in the year-ending 1st quarter 2022, historical perspective demonstrates that the market’s most recent demand tally is indeed still significant. In the past decade, annual demand volumes averaged closer to 305,300 units, while the five-year norm is a bit higher at a little over 374,100 units. U.S. demand has been pacing ahead of historically high supply as well. In the year-ending 2nd quarter 2022, apartment demand outpaced supply of over 337,900 units, which is a substantial total even for the most recent high-supply building cycle.