East Coast Resilience Attributed to Low Supply Pressure
The relative pace of apartment development in the East Coast ranks about two to three times lower than in most other regions, allowing the East Coast to maintain fundamentals above the national norm as of 2nd quarter 2023. While the East Coast was slower to rebound than the U.S. on aggregate in the 2021 recovery period, that didn’t prevent the region from matching the national norm throughout most of 2022. But as the nation slowed in the back half of 2022, the East Coast didn’t see as much of a slowdown. And today, the region’s year-over-year effective asking rent change (3.2% in July) ranks well above the national norm (0.8% in July). Meanwhile, annual inventory growth in the year-ending 2nd quarter 2023 for the East Coast region clocked in at just 1.2%. By comparison, inventory growth reached roughly 2.5% to 3.5% in places like the Mountains/Desert region, Texas and Florida.
For more information on the state of the East Coast apartment region, including forecasts, watch the webcast Market Intelligence: Q3 East Coast Market Update.