Demand Tops Supply in Four Major Markets
With apartment absorption down nationwide, only four of the nation’s largest 50 markets managed enough demand to outpace new supply in the past year. The recent pandemic-induced downturn has impacted demand for apartments across the nation, as leasing activity was severely limited by stay-at-home orders, business closures and unprecedented job loss. During the year-ending 2nd quarter 2020, demand fell short of supply by roughly 42% nationally. While most major markets followed that pattern, four are holding onto just enough demand to top supply. New York, which has been one of the areas hardest hit by the COVID-19 pandemic, logged apartment demand for 7,670 units in the year-ending 2nd quarter 2020. While about one-third lower than the 1st quarter showing, demand still surpassed new supply of 7,302 units. Meanwhile, Cleveland absorbed 1,320 units in the year-ending 2nd quarter 2020. While below the market’s five-year average, demand exceeded concurrent new supply, which has dropped off recently. The only other two major markets that saw demand exceed new supply over the past year were Memphis and Virginia Beach. These two markets have also been among the national leaders for asking rent growth in recent months.