Desert/Mountains Among the Nation’s Fastest Growing Apartment Regions

While demand has been hearty in the Desert/Mountains region in the past year, performance fundamentals have been held back by one of the nation’s biggest inventory increases. The Desert/Mountains region – which includes Phoenix, Denver, Las Vegas and Salt Lake City, among others – added roughly 60,400 new apartments in the year-ending 1st quarter, which increased the existing unit base by 4%. Only the Carolinas logged more impressive inventory growth in the past year, with an increase of 4.7%. While Florida and Texas both added more units than the Carolinas or the Desert/Mountains region in the past year, inventory growth in those high-supply areas was more muted at 3.8% (Florida) and 3.4% (Texas). Heavy supply volumes are scheduled to continue in the Desert/Mountains region in the near term, limiting apartment occupancy and rent growth potential.