RealPage Analytics Blog

RealPage Economy Express Episode 62

2026-04-13T14:32:49-05:00

Inflation roared back to the forefront in March, amplifying consumer anxiety and freezing key parts of the economy just as the Fed signaled it plans to stay on the sidelines. Oil prices are elevated, adding pressure across the economy. Consumer confidence is weakening, with surveys showing Americans increasingly anxious about the future. Gas prices and geopolitical tensions (including the Iran conflict) are major drivers of the consumer mood shift. The Fed held rates steady, with meeting minutes showing no urgency to move in either direction. Households are spending, but paychecks are not keeping up with costs. Labor market signals are mixed: February job losses followed by a solid March rebound. Job openings remain high, but employers are filling roles more slowly. Mortgage rates climbed to their highest level since last summer, cooling buyer activity. Mortgage applications and refinancing both dropped sharply. Home price growth slowed to its weakest pace in over a year. March CPI hit its highest reading in nearly two years, driven by a historic spike in gasoline prices. Energy costs surged, pushing headline inflation higher while core inflation stayed relatively stable. Rising gas prices are feeding into transportation, food costs and consumer sentiment. With inflation heating up again, the Fed has even more incentive to remain on hold. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

BLS Revisions Drastically Change Top Jobs Markets

2026-04-13T02:00:04-05:00

The annual benchmark revisions from the Bureau of Labor Statistics (BLS) drastically changed the employment data for a number of markets around the country. Each April, the BLS utilizes data from the Quarterly Census of Employment and Wages to revise not seasonally adjusted employment levels for the past two years, which then affect the calculated annual change in employment or job gain numbers for the previous 12 months. New York-White Plains/Kiryas Joel-Poughkeepsie, NY, which had been a perennial leader for job gains on our top 10 list for several years, suddenly found itself re-ranked throughout much of 2025 to well out of the top 10 for job gains. In fact, the BLS now reports annual job losses for New York each of the past five months. After the revisions, New York averaged a loss of 6,200 jobs from April to December 2025 compared to an average gain of more than 80,000 jobs prior to revisions for the same time period. Another market affected by revisions was Charlotte, which was reported to lead the nation for job gains in December. With the benchmark revisions, it would have ranked #7 in December, and it fell out of the top 10 in January due to the changes. January’s list of top 10 job change markets includes metros with gains ranging from 34,000 jobs in Los Angeles to 13,600 new jobs in Chicago. Previous top 10 lists typically ranged from 30,000 to 100,000+ new jobs as the benchmark revisions have revealed a weaker employment situation than was previously reported. @include('site.elements.media.image', ['fileId' => 37958, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '643']]) Along with Los Angeles, Dallas, Houston and Austin, top job gainers in January included Las Vegas, San Jose, Nassau County-Suffolk County, NY and Kansas City. A total of 60 of RealPage’s top 150 markets reported job losses for the year-ending January, led by Washington, DC (-103,900 jobs) and its Federal government job cuts. That was eight more than in December....

U.S. Submarkets with Explosive Apartment Inventory Growth

2026-04-12T02:00:04-05:00

Among the neighborhoods that saw massive apartment inventory growth in the past 10 years, nearly half were in Texas. U.S. apartment supply volumes peaked in late 2024 and have been on a downward trend since. But the nation is still reacting to one of the largest apartment building cycles it has ever seen. Some neighborhoods saw explosive growth that transformed their landscape in the past 10 years. Among the nation’s largest 150 apartment markets, there are 998 submarkets. Among those submarkets, 11 saw apartment inventory grow by more than 140% in the past decade, according to data from RealPage Market Analytics. In comparison, the U.S. overall saw an increase of 21.4% between 1st quarter 2016 and 1st quarter 2026. @include('site.elements.media.image', ['fileId' => 37940, 'attributes' => ['border' => '0', 'width' => '1500', 'height' => '1000']]) Among the 11 submarkets across the U.S. with the most intense inventory growth in the past 10 years, five were located in Texas. Dallas Submarkets Apartment inventory in Frisco and Rockwall/Rowlett/Wylie more than tripled in the past 10 years. These were the two fastest growth rates nationwide. The existing stock in Frisco – a northern suburb of Dallas, spanning across both Collin and Denton Counties – grew 259.6% between 1st quarter 2016 and 1st quarter 2026, with the addition of 30,848 new apartment units. In fact, completions totaling more than 30,000 units were right in line with typical heavy hitter Jersey City and just shy of Brooklyn. The Rockwall/Rowlett/Wylie submarket – an affluent area located northeast of Dallas – saw the nation’s second-biggest inventory increase in the past 10 years, with an upturn of 234.5%, accounting for about 9,850 units. Located just south of the Rockwall/Rowlett/Wylie submarket, Kaufman County saw its inventory more than double, growing by 154.3% in the past 10 years with the addition of 4,255 new apartment units. Austin Submarkets Two Austin submarkets – one in the eastern...

This Small Florida Beach Town is Seeing the Deepest Rent Cuts in the U.S.

2026-04-13T02:00:04-05:00

Cape Coral-Fort Myers recorded its 33rd consecutive month of annual rent cuts in March. With effective asking rents down 11.1% year-over-year, March marked the second straight month with rent declines deeper than 11%, levels not seen since the Great Recession. That rate underperformed Cape Coral’s five-year monthly average (an increase of 4.8%) and ranked as the nation’s deepest cut among the largest 150 markets, according to data from RealPage Market Analytics. In comparison, rent cuts in the U.S. overall were much more conservative at 0.7%. For further perspective, Cape Coral is one of only 20 markets that have recorded annual rent cuts in 30 or more consecutive months over the last three years. Additionally, the market’s recent performance is a significant departure from the roughly 11% to 35% annual increases seen in Cape Coral from July 2021 to February 2023, when renters were flocking to small Florida beach towns. Weighing on rent performance, annual completions in Cape Coral have remained near 20-year highs over the last few years. Although annual demand has accelerated over the last two years as well, it has not been sufficient to stabilize rent performance. About 6,700 units remain in Cape Coral’s construction pipeline with the majority ‒ roughly 4,800 units ‒ expected to complete in 2026. As the supply pipeline dwindles in late 2026, look for annual rent change in Cape Coral to turn positive once again in the early months of 2027.

Apartment Demand Rebounds in 1st Quarter as Supply Volumes Continue to Slow

2026-04-13T02:00:04-05:00

The U.S. apartment market saw demand bounce back in 1st quarter, but annual absorption remains slightly below the decade norm. The nation absorbed nearly 93,300 in the first three months of the year, marking one of the strongest 1st quarter performances in the past decade. This demand swell more than made up for the net move-outs seen at the end of 2025. Still, annual demand totaled just over 303,000 units, trailing the decade average of about 340,000 units. @include('site.elements.media.image', ['fileId' => 37907, 'attributes' => ['border' => '0', 'width' => '1455', 'height' => '1759']]) Apartment supply volumes are also slowing and have now returned to the decade norm. Roughly 367,000 units wrapped up construction across the U.S. in the year-ending 1st quarter 2026, including about 75,200 units in the first three months of the year. This marks a fifth consecutive quarter of declining annual supply after deliveries peaked at over 589,000 units in late 2024. This latest round of apartment deliveries was about in line with 10-year average annual completion volume. With demand still soft relative to recent supply, U.S. apartment occupancy slipped below the essentially full threshold at the end of 2025 and has yet to recover. Occupancy in 1st quarter stood at 94.9%, up a modest 10 basis points (bps) quarter-over-quarter but still 20 bps lower than the year-earlier showing. Rents Increased – Just a Bit – in 1st Quarter After two consecutive quarters of decline, rents inched up slightly in 1st quarter, rising 0.4%. Still, the recent increase wasn’t enough to alleviate previous cuts, leaving effective asking rents 0.5% below year-earlier rates. Concessions remain widespread. Roughly 25.5% of apartments were offering concessions as of 1st quarter, with the average concession at 7.2%. As operators prioritize occupancy heading into peak leasing season, concession usage may expand further, delaying meaningful rent growth until these incentives begin to burn off. Rent...

U.S. Labor Market Rebounds in March

2026-04-13T02:00:04-05:00

U.S. employment rebounded in March while the unemployment rate ticked down. However, the war in Iran could have a negative impact on upcoming jobs reports. According to a survey of businesses by the Bureau of Labor Statistics (BLS), U.S. employers added 178,000 workers to payrolls in March 2026, the strongest monthly jobs report in over a year. March job additions were a reversal from the February loss of 133,000 jobs which was revised down by 41,000 jobs, while January job additions were revised up by 34,000 jobs to a gain of 160,000 jobs. In addition, the March jobs report vastly exceeded economists’ expectations of a gain of roughly 60,000 to 70,000 jobs. Seven of the 11 major industries recorded job gains in March. The largest job additions were in the Education/Health Services sector, which added 91,000 jobs. The bulk of those job gains were in Health Care (+76,400 jobs), which followed steep job losses of more than 32,000 in February, primarily due to large healthcare workers’ strikes in Hawaii and California. Notable job gains were also seen in Leisure/Hospitality Services (+44,000 jobs), Trade/Transportation/Utilities (+33,000 jobs), Construction (+26,000 jobs) and Manufacturing (+15,000 jobs). In contrast, job losses were seen in Financial Activities (-15,000 jobs), Other Services (-9,000 jobs), Government (-8,000 jobs) and Information (-3,000 jobs). Meanwhile, the unemployment rate (U3 or headline unemployment rate, which is seasonally adjusted, and is a survey of households) registered at 4.3% in March. That was down from the February rate of 4.4%, though that was largely due to people dropping out of the workforce. This post is part of a series analyzing employment data from the Bureau of Labor Statistics. For more on this data, read previous posts on Job Growth.

Fastest Growing U.S. Metros in 2025

2026-04-13T02:00:04-05:00

The population of the U.S. expanded by 0.5% from July 1, 2024 to July 1, 2025, according to U.S. Census Bureau estimates. Out of the nation’s 387 U.S. metropolitan statistical areas, 155 saw population growth rates above the national average last year. Ten of the nation’s metro areas posted population growth of 2.4% or more from 2024 to 2025. All but one of those metros was in the South region, with Florida and the Carolina’s dominating the leaderboard. Ocala, FL, located north of the Orlando metro, recorded the nation’s fastest growth pace of 3.4%. Also recording growth of more than 3% was Myrtle Beach-Conway-North Myrtle Beach, SC, with a population gain of 3.2% from 2024 to 2025. @include('site.elements.media.image', ['fileId' => 37879, 'attributes' => ['border' => '0', 'width' => '1500', 'height' => '925']]) St. George, UT was the only metro among the 10 fastest growing located outside of the South region. St. George, in southwest Utah, boarding Nevada and Arizona, saw its population grow by 2.6% from 2024 to 2025. Still, it’s a relatively small metro area with a population of 213,670 as of 2025. Looking at numeric growth, all but one South region metro area ranked among the nation’s top 10 for population increases from 2024 to 2025. All four of Texas’ largest markets made the list. Houston-Pasadena-The Woodlands, TX led the nation with a population increase of roughly 126,700 residents, followed by Dallas-Fort Worth-Arlington, TX with a gain of nearly 123,600 residents. Both those metro areas saw their populations increase at double the rate of the next largest increase in Atlanta (+61,953 residents). @include('site.elements.media.image', ['fileId' => 37863, 'attributes' => ['border' => '0', 'width' => '1500', 'height' => '925']]) The only metro area outside the South region with a big bump in population from 2024 to 2025 was Seattle-Tacoma-Bellevue, WA, which added nearly 43,100 new residents. Based on total population in 2025, New York-Newark-Jersey Ci...

Markets Where Apartment Construction Activity Has Dried Up

2026-04-13T02:00:04-05:00

At the end of 2025, there were 16 markets (out of the nation’s 150 largest) lacking apartment construction activity. That was up from the 10 markets without construction one year ago and up from the six markets lacking activity two years earlier, according to data from RealPage Market Analytics. The longest dry spell among the nation’s largest 150 apartment markets was in Youngstown-Warren/Hermitage. That market has not had any apartment construction activity in about seven years (since 2nd quarter 2018). The second and third longest dry spells were in Urban Honolulu which hasn’t seen any new apartment construction since 3rd quarter 2022 and Midland/Odessa which has lacked development activity since 2nd quarter 2023. Five of these 16 markets ranked among the top 10 for occupancy in February, with the nation’s tightest reading in Youngstown at 98.9%, followed by Atlantic City-Hammonton (#2 at 97.6%) and Flint (#5 at 97.4%). Meanwhile, McAllen/Brownsville and Midland/Odessa ranked among the nation’s 10 weakest occupancy rates, both at 92.8%. Likewise, effective asking rent change was varied during the year-ending February 2026. Urban Honolulu and Champaign-Urbana posted the nation’s second- and third-largest rent hikes nationally, at 7.7% and 5.7%, respectively. Atlantic City-Hammonton (-1.1%), Eugene-Springfield (-0.7%) and Midland/Odessa (-0.6%) were the only markets without development activity to cut rents during that period.

Markets with the Nation’s Lowest and Highest Unemployment Rates

2026-04-13T02:00:04-05:00

As of December 2025, the nation’s unemployment rate averaged 4.1% after rising 30 basis points (bps) year-over-year, according to non-seasonally adjusted data from the Bureau of Labor Statistics. Ten of the nation’s 50 largest markets had rates below 3.5%, while 10 markets had rates above 4.5%. Meanwhile, 38 of the nation’s 50 largest markets saw unemployment rise from December 2024 to December 2025, while only eight markets saw unemployment fall during the year and four markets recorded no change in the rate. Among major markets, Indianapolis and Miami claimed the nation’s lowest unemployment rates in December, both at 2.5%. While Miami’s rate crept up 10 basis point (bps) year-over-year, Indianapolis posted a 120-bps decline, the nation’s best performance. Nashville had the third-lowest unemployment rate in December at 2.9%, just under the 3% rate recorded a year earlier. The fourth-lowest unemployment rate was in Raleigh/Durham at 3%, up 20 bps for the year. @include('site.elements.media.image', ['fileId' => 37814, 'attributes' => ['border' => '0', 'width' => '1500', 'height' => '925']]) Tying for the nation’s fifth lowest unemployment rate of 3.2% in December were Austin and Milwaukee, after year-over-year increases of 10 bps and 20 bps, respectively. Atlanta and Richmond both recorded December unemployment at 3.3%, tying for the seventh-lowest rate nationally. Over the past year, unemployment was unchanged in Atlanta, while unemployment increased in Richmond (+70 bps). Cleveland and Salt Lake City tied with the 9th lowest unemployment rate of 3.4% in December, after rising 10 bps and 50 bps, respectively. On the flip side, Las Vegas continued to record the nation’s highest unemployment rate of 5.2% in December 2025, though that was a 70-bps improvement from a year earlier. Riverside and neighboring Los Angeles claimed the second- and third-highest rates nationally, at 5.1% and 5%, respectively. While unemployment in Riverside rose 20 bps year-over-year, the...

RealPage Economy Express Episode 61

2026-04-10T02:00:03-05:00

The latest data paints a picture of an economy holding together under pressure but struggling to build momentum. The Federal Reserve kept the funds rate unchanged at 3.5% to 3.7% in late March, with only one policymaker pushing for an immediate cut. Producer prices rose 0.7% in February, bringing year‑over‑year PPI to 3.4%, the highest annual upturn in a year. Core producer price inflation continued its steady climb in February, marking 10 consecutive months of increase. The Personal Consumption Expenditures (PCE) price index rose 2.8% year-over-year in January, while core PCE came in at 3.1%, showing inflation remains sticky. Real consumer spending barely moved, and the savings rate slipped to 4.5% in January as households stretched to maintain their spending. Job openings in the JOLTS report ticked up in January, but hires and quits stayed flat, reflecting a labor market stuck in neutral. New home sales fell nearly 18% in January to a 587,000 annual pace. Pending home sales rose 1.8% in February, with the Midwest leading the improvement. The average 30‑year mortgage rate climbed to 6.4% in late March, the highest since October, causing mortgage applications to drop more than 10%. Rising oil prices kept upward pressure on Treasury yields, adding strain for prospective borrowers. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

U.S. Rent Concessions Hold Elevated in February

2026-04-09T02:00:05-05:00

U.S. apartment concession usage was unchanged month-over-month according to data from RealPage Market Analytics. Nationwide, 16.7% of stabilized apartments offered concessions in February 2026, which was consistent with January’s reading. This level of concession activity remained a full point above December 2025’s rate and continues to mark the highest monthly discount usage since mid-2014. The average discount amount, meanwhile, increased a modest 0.1 point month-over-month and two points year-over-year, reaching 10.8% in February 2026. Concessions have generally trended upward since reaching a decade low of 5% in mid-2022 and now sit at their highest level since the post–Great Financial Crisis period (2010). @include('site.elements.media.image', ['fileId' => 37770, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Across product classes, concession patterns remained consistent in February. Class A held the highest level at 11.1%, roughly unchanged over the past three months. Discounts in Class B (10.5%) and Class C (10.8%) product also aligned closely with recent three‑month averages. Class C properties continued to show the highest concession usage, with 21.7% offering a discount in February. By comparison, usage in Class A (13.6%) and Class B (14.9%) units was somewhat milder. Middle-tier Class B product was the only segment to record a slight decrease, declining 0.3 points month-over-month. Concession usage for two‑ and three‑bedroom units ran slightly below the U.S. average at roughly 16%. In contrast, one‑bedrooms (17.1%) and efficiencies (19.1%) posted higher‑than‑normal usage. Discount amounts averaged about 10.5% for larger units, compared with roughly 11% to 12% for efficiencies and one‑bedrooms.

Multifamily Permitting – Increasing or Leveling?

2026-04-08T02:00:05-05:00

Does the recent uptick in multifamily permitting signal the beginning of a new construction cycle or another period of sideways growth? As we’ve pointed out before, multifamily permitting is turning up again after troughing at about 430,000 units (not seasonally adjusted) one year ago. This followed a surge in production after the COVID-19 pandemic. The January 2026 total of 453,400 units was 5.4% above that low point. The recent post-pandemic peak of more than 650,000 multifamily units permitted in 2023 was comparable to the mid-1980’s peak (caused by favorable tax incentives), but far less than the early-1970’s level of more than one million units permitted (baby boomer demand) when the modern apartment landscape emerged. However, the multifamily housing trend doesn’t always move in peaks and valleys as there have been at least two periods of relatively flat growth for extended periods. As seen in the following chart, annual not seasonally adjusted multifamily permitting averaged about 350,000 units per year for about nine years (1998-2007) and averaged roughly 430,000 units per year for around seven years (2015-2021). @include('site.elements.media.image', ['fileId' => 37733, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) It is too early to tell if the current economic and apartment market conditions, as well as the political and financial lending environments will act as headwinds, tailwinds or something in between. We could be entering another period of flat and stable levels of multifamily permitting. It appears likely that apartment development will be a challenging endeavor for the next few years, despite the need for more housing and diminishing new supply in many markets. At the CBSA level, we are seeing a mixed bag of multifamily permitting trends with half of RealPage’s top 150 markets reporting an increase in permitting compared to one year ago, and the other half unchanged or negative. Even among the top 10 permitting m...

Annual Rent Cuts Continue Across 65 Large U.S. Apartment Markets

2026-04-07T02:00:04-05:00

More than 40% of the top 150 U.S. apartment markets cut effective asking rents in the year-ending February 2026. Operators across the U.S. cut rents 0.1% to 11.8% in 65 apartment markets. Constrained performance went beyond just small markets to hit 27 of the top 50 markets. For perspective, the national year-over-year average cut in the U.S. was a mild 0.4%, according to data from RealPage Market Analytics. That decline marked the seventh consecutive month of annual rent cuts across the nation. It also marked a slowdown from the year-ago reading in February 2025 when prices increased 0.8%. From a regional perspective, the supply-heavy South (-2.0%) weighed on rent change in the year-ending February 2026, followed by the West (-0.3%). Increases in the Northeast (2%) and Midwest (0.8%) minimized the performance decline. Homing in on the market level, eight of the worst rent change performers were South region markets. Cape Coral recorded the nation’s worst performance and the only double-digit decline (-11.8%). Three other Florida markets ranked among the 10 worst market performers in the past year, including Naples (-9.9%), North Port (-8.9%) and Tampa (-5.4%). Austin continued to post deep reductions in February with operators cutting rents 7%. Meanwhile, Denver operators reduced rents 6.3%. Effective asking rents fell 5.7% in Asheville, 5.3% in Boulder and 4.9% in Phoenix. Tied with a 4.8% decrease were San Antonio, Savannah and Tucson. Looking ahead, U.S. rent performance is expected to turn positive in the last half of 2026 as South region performance improves.

Historic Decline in Net International Migration Slows U.S. Population Growth

2026-04-06T02:00:03-05:00

The population of the U.S. recently expanded at the slowest pace in four years. From July 1, 2024 to July 1, 2025, the U.S. gained roughly 1.8 million residents, according to U.S. Census Bureau estimates. That increase equated to a growth rate of just 0.5%, the slowest population growth since the COVID-19 pandemic period of 2021 when the U.S. added just over half a million people for a growth rate of 0.2%. The nation’s recent population growth was nearly half the increase recorded a year earlier when the U.S. added 3.2 million people, growing its population by 1%, the fastest annual population expansion since 2006. For comparison, during the 2010’s decade, the nation’s population grew an average of roughly 0.7% a year. All four U.S. census regions saw a decline in population growth from July 2024 to July 2025. The South region posted a population increase of 0.9% during that period, the first time since 2021 that the region’s population expansion registered below 1%. The Northeast recorded the steepest setback in growth, dropping from an increase of 0.8% between 2023 and 2024 to just 0.2% between 2024 and 2025. The West recorded a similar falloff in expansion, from 0.8% in 2024 to 0.3% in 2025. The Midwest was relatively more stable. That region saw population growth slow to 0.4% in 2025, down from the 0.6% expansion in 2024. @include('site.elements.media.image', ['fileId' => 37704, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) The pullback in the nation’s overall population growth was due to a historic decline in the rate of net international migration. Net international migration peaked at 2.7 million in 2024 and dropped to 1.3 million in 2025. The recent decline in net international migration was due to a decrease in both immigration (people moving into the U.S. from other countries) and an increase in emigration (people moving out of the U.S.). Meanwhile, the nation’s natural increase in population (births minus deaths) remained r...

Las Vegas Rent Cuts Remain Deep Compared to U.S. Norms

2026-04-02T02:00:03-05:00

Rent cuts have gotten more aggressive in Las Vegas in recent years. After price positioning in Sin City briefly matched the national average in mid-2024, operators turned to more forceful tactics in the wake of a wavering economic base. Operators in Las Vegas cut effective asking rents 2.7% year-over-year as of February, according to data from RealPage Market Analytics. This ranked Las Vegas in the bottom 10 among the nation’s largest 50 apartment markets. That’s quite a drastic change from August 2024, when rents in Las Vegas inched up 0.3%, essentially in line with the U.S. norm. Price positioning started softening soon after that recent peak and rent cuts got as deep as 4.4% by August 2025. Inspiring rent cuts in Las Vegas, apartment demand slowed sharply in the second half of 2025, hindered by economic performance. Las Vegas recorded a net loss of 8,900 jobs in 2025, shrinking the employment base 0.8%, according to the latest data from the Bureau of Labor Statistics. Weakness in tourism markets often signals consumer pullback in discretionary spending, particularly travel, as a reaction to economic weakness across the U.S.

Apartment Occupancy in DC Slips Below U.S. Norm, While Supply Pipeline Eases

2026-04-02T02:00:03-05:00

Washington, DC’s apartment market is undergoing a notable shift as occupancy – once consistently above the national norm – has now slipped below it. Occupancy in Washington, DC dipped to 94.7% in February 2026. That’s a shift from most of the past three years, when occupancy in Washington, DC ran a range of 10 to 120 basis points (bps) above the U.S. average before sliding in line and, more recently, below the U.S. norm. @include('site.elements.media.image', ['fileId' => 37685, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Still elevated supply partnered with a sharp downturn in demand weighed on occupancy. Developers completed about 10,700 units in 2025, expanding inventory by 1.5%. Nevertheless, deliveries have slowed over the past four quarters, with only 1,866 units completing in 4th quarter 2025, trailing the five‑year quarterly average of 3,170 units. Meanwhile, the construction pipeline keeps ratcheting down. Just 11,794 units were underway as of 4th quarter 2025, nearly 70% below 2022 levels. Even so, that volume of completions is scheduled lift the existing base by another 1.7%. About half of under construction units are slated to deliver in 2026, pointing to sub‑1% inventory growth – well below the 2010s-decade annual average of 1.7%. @include('site.elements.media.image', ['fileId' => 37686, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) On the other side of the supply/demand equation, demand fell sharply in 2025. The market logged demand for only 1,055 units in calendar 2025, with net move‑outs accelerating in the second half of the year. Demand in 2025 was significantly behind DC’s annual average absorption volume topping 12,300 units in the past five years. With pressure on occupancy, DC operators cut effective asking rents 0.3% in February, underperforming both the U.S. increase of 0.3% and the South region’s 0.1% rise. In February, DC was one of only six top‑50 markets still posting monthly...

St. Louis Ranks Among Nation's Top Rent Growth Markets

2026-03-26T02:00:03-05:00

In the past year, St. Louis has quickly become one of the strongest rent growth markets nationwide. Effective asking rents increased 2.4% year-over-year in St. Louis as of February, according to data from RealPage Market Analytics. Among the nation’s largest 50 apartment markets, St. Louis ranked among the top 10 for annual rent growth, joining the typically big price increase markets of San Francisco, San Jose, New York and Chicago, as well as Virginia Beach in the South and a handful of other Midwest markets including Cleveland, Cincinnati, Minneapolis and Kansas City. Rent growth of any kind in the past year ran contrary to the U.S. average. In fact, among the 50 major markets, less than half recorded rent growth in the year-ending February. Additionally, a top-tier rent growth performance is not the norm for St. Louis. Even during the pandemic-era surge, St. Louis trailed the U.S. average annual increase. But in the past three years, the script has flipped, and St. Louis rent growth has paced ahead of the national norm.

Ten of the Nation's Deepest Market-Level Rent Cuts in February

2026-03-30T02:00:04-05:00

Nearly one-quarter of U.S. apartment markets saw effective asking rent cuts in February 2026. Across the U.S., rents ticked up a slight 0.3% in February, marking the second straight month of gains and only the second month in the last seven that rents increased. Weighing on the national rent performance, 33 markets out of the largest 150 saw monthly pullbacks, according to data from RealPage Market Analytics. At the bottom of the list, three Florida markets – Gainesville, Cape Coral-Fort Myers and Tallahassee – ranked as the nation’s worst performers, with each seeing rents come down 1.3% in February. Eugene, OR followed with a 1% reduction for the month. Rents declined 0.9% in Akron in February, while Ann Arbor, Salem and Huntsville, AL tied with a 0.8% monthly decline. Syracuse and Nashville (the only top 50 market on the list) tied, both logging cuts of 0.7% in February. In each of these bottom-tier performance markets, rent cuts in February were vastly different from the five-year averages, which were increases of 0.1% to 0.4%. Occupancy across this group of markets varied widely from 92.8% to 97.6%. Effective asking rents were as low as $1,333 to as high as $1,628 per month, all below the national average ($1,864).

RealPage Economy Express Episode 60

2026-03-26T02:00:03-05:00

Episode 60: The latest data shows a cooling labor market, easing inflation, improving trade flows and a strengthening housing sector all unfolding at once. February nonfarm payrolls fell by 92,000, with 28,000 health‑care jobs lost due to a strike and 10,000 federal government jobs cut. Unemployment rate held at 4.4%, but long‑term unemployment rose, with average duration reaching 25.7 weeks, the longest since December 2021. Revisions turned December into a net job loss, with three of the last five months now showing payroll declines. Weekly jobless claims for the week-ending March 7 were 213,000, essentially unchanged; the four‑week average was 212,000, signaling slower hiring rather than rising layoffs. February CPI rose 0.3% month-over-month and 2.4% year-over-year; core CPI increased 2.5%, edging closer to the Fed’s 2% target. January’s trade deficit narrowed to $54.5 billion, down from a revised $72.9 billion in December. February existing home sales increased 1.7% to 4.09 million annualized, with affordability at its best since March 2022 as the 30-year mortgage rate fell to 6.05%. Mortgage applications for the week-ending March 6 rose 3.2%. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

Fall 2026 Pre-Leasing Season Continues to Make Notable Progress

2026-03-24T02:00:05-05:00

Five months into the Fall 2026 pre-lease season, the U.S. student housing market is almost 50% full. As of February, 47.6% of student housing beds across the U.S. were pre-leased for the Fall 2026 school year. From January to February, leasing increased by 1,020 basis points (bps), which was right in line with the solid increase seen in February 2025 and the decade average for February activity in the Student Housing sector. After starting the Fall 2026 pre-lease season at the slowest pace in over a decade, the market is quickly closing that gap, and momentum continues to build. In the past 10 years, February pre-leasing averaged at 48.5%, a bit above Fall 2026’s February showing. However, the gap between the current rate and the 10-year average (90 bps) is much smaller now than it was just two months ago (300 bps). @include('site.elements.media.image', ['fileId' => 37594, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) While Fall 2026’s February pre-lease rate is ahead of Fall 2025’s February reading, however, it was still behind the February showings topping 54% seen in Fall 2023 and Fall 2024 pre-leasing seasons. It should be noted, however, that while Fall 2025 pre-leasing started out slowly, it did end up being the strongest season in recent history. Fall 2026 does seem to be following that model as well. (The core 175 universities tracked and forecasted by RealPage saw even more progress, with 49.4% pre-leased as of February. That was quite a boost from the 39.4% leased in January.) Apartments located more than one mile from campus were 49.6% pre-leased in February. Properties closest – within a half mile of campus – were 47.3% as of February, while communities within a half mile to one mile of campus were 47.2% pre-leased. All three of these sectors made progress topping 1,000 bps during the month. For more information on the state of the student housing industry, read previous posts on Student Housing.

Tampa Has Quickly Become a Bottom-Tier Rent Performer

2026-03-23T02:00:04-05:00

In the past year, Tampa has quickly become one of the nation’s bottom rent change performers. Operators cut effective asking rents in Tampa by 5.4% year-over-year as of February, according to data from RealPage Market Analytics. Among the nation’s largest 50 apartment markets, only Denver and Austin saw deeper rent cuts. That’s quite a drastic change from Tampa's performance from just a year ago, when rents were growing by nearly 2% annually. Price positioning started softening soon after that recent peak and by July 2025, annual growth in Tampa tied the U.S. average at a mild 0.2%. Looking further back, price positioning in Tampa has been volatile since the work-from-anywhere trend caused a mass migration to Florida beach towns. This influx of demand prompted a new supply wave that has in turn leveled out rent positioning. The market saw another boost in pricing in early 2025 before declining in the back half of the year. Not surprisingly, Tampa also ranks among the nation’s lowest occupancy rates as of February 2026, coming in at 93.8%.

Los Angeles Set to Reach Peak Apartment Supply in 2026

2026-03-19T02:00:04-05:00

While most major markets reached peak apartment supply in 2024 and 2025, Los Angeles is slated to receive its largest volume of new supply on record in 2026. Apartment developers wrapped up construction on roughly 9,000 units across the Los Angeles market during calendar 2025. In calendar 2026, about 12,300 units are scheduled for completion in LA, according to RealPage Market Analytics. If construction timelines hold, that would be largest delivery load since RealPage began tracking the market in 2000 and the nation’s fifth-largest completion volume. In addition, Los Angeles is expecting the nation’s biggest ramp up in completions during 2026, with nearly 3,400 more units scheduled to deliver during the year than the market delivered in 2025. Only 11 of the nation’s 50 largest apartment markets are expecting more new supply in 2026 than they received in 2025. @include('site.elements.media.image', ['fileId' => 37559, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Although Los Angeles’ scheduled completions for this calendar year are expected to reach historic levels, inventory expansion will remain modest. With the market’s existing unit count at nearly 1.17 million, the record-setting completions in 2026 will only expand inventory 1.1%. While that is a notable expansion rate for Los Angeles, it is low by national standards. The U.S. overall is expected to see inventory growth of 1.6% in 2026. Nearly half of Los Angeles’ apartment deliveries in 2026 are expected in just three submarkets. The biggest supply load of nearly 3,000 units is scheduled for Mid-Wilshire this year, followed by Hollywood (1,398 units) and Southeast Los Angeles (1,372 units). @include('site.elements.media.image', ['fileId' => 37571, 'attributes' => ['border' => '0', 'width' => '1280', 'height' => '789']]) Mid-Wilshire, the largest of LA’s submarkets with nearly 130,000 existing units, is expected to grow its inventory by a market-leading 2.4%. Also expected to...

U.S. Records Steep Job Losses in February, Contrary to Economists’ Expectations

2026-03-19T02:00:04-05:00

The U.S. labor market has been on a roller coaster over much of the past year, with big gains followed by steep losses. Contrary to expectations, the U.S. economy lost jobs in February while the unemployment rate rose. In addition, job growth in December and January was not as strong as previously reported, with a combined downward revision of 69,000 jobs. According to a survey of businesses by the Bureau of Labor Statistics (BLS), U.S. employers decreased payrolls by 92,000 jobs in February 2026, marking the fifth time in nine months that the economy lost jobs and the second-weakest monthly jobs report since December 2020. The February jobs report was vastly different from economists’ expectations of a gain of roughly 50,000 to 60,000 jobs. Nearly every sector recorded job losses in February. The steepest job loss was in the Education/Health Services sector, which was down by 34,000 jobs. That was the first monthly job loss that sector has seen since April 2020 during the COVID-19 pandemic. The bulk of that net job loss was in Health Care (-28,000 jobs), which was impacted by a large healthcare workers’ strike in Hawaii and California. However, job losses were also seen in Private Educational Services (-15,700 jobs). Leisure/Hospitality Services also recorded notable job cuts during February, with that sector down by 27,000 jobs, with Food Services and Drinking Places (-29,700 jobs) heavily contributing to that net loss. Financial Activities (+10,000 jobs) and Other Services (+8,000 jobs) were the only major sectors to post job gains during February. Meanwhile, the unemployment rate (U3 or headline unemployment rate, which is seasonally adjusted, and is a survey of households) registered at 4.4% in February. That was up from the January rate of 4.3% and above the year-earlier rate of 4.2% but matched the U.S. average of 4.4% from 2015 to 2019. This post is part of a series analyzing employment data from the Bureau of Labor Statistics. For more on this...

Key Florida Markets Still Maintaining Some of the Highest Demand Nationwide

2026-03-19T02:00:04-05:00

Although absorption has slowed from pandemic-era migration trends, Florida apartment markets continue to record some of the nation’s strongest demand. However, absorption is slowing, with economic uncertainty around tourism, slowing migration and softening job growth expected to further weigh on Florida’s outlook in the near term. Among the nation’s 50 largest markets, a handful of Florida areas made the top 10 for demand in 4th quarter, including Miami, Orlando and Fort Lauderdale, while West Palm Beach fell just short. Orlando was the only Florida market to make the top 10 for annual demand, with absorption hitting nearly 9,400 units in calendar 2025. Across Florida markets, Class A demand is holding up best, while Class B and Class C product are absorbing new supply more slowly. For more information on the state of Florida apartment markets, including forecasts, watch the webcast Market Intelligence: Q1 2026 Florida Update.

U.S. Apartment Occupancy and Rents Inch Up Again in February

2026-03-17T02:00:04-05:00

For the first time in two years, U.S. apartment occupancy and rents both posted back-to-back monthly increases, though the upturns were mild. After consistently logging mild monthly declines throughout the back half of 2025, apartment occupancy inched up in both January and February 2026. U.S. occupancy hit 94.8% in February, after rising 10 basis points (bps) in each of the past two months, according to data from RealPage Market Analytics. Even with this recent improvement, however, occupancy remained 10 bps below year-ago levels and was 90 bps under the recent peak from April 2025. @include('site.elements.media.image', ['fileId' => 37510, 'attributes' => ['border' => '0', 'width' => '1280', 'height' => '1547']]) Rents also continued their early-year momentum. After January saw the first increase in effective asking rents in seven months, the U.S. saw prices increase again – mildly – in February. U.S. prices climbed 0.3% over January rates, signaling a shift after a prolonged period of monthly declines. Much like in occupancy, however, recent rent gains were not enough to erase the annual deficit. February rents remained 0.4% below year-earlier rates. The nation’s South and West region markets continued to see the steepest annual rent cuts, while tech-heavy East and West Coast markets saw renewed strength. Rent Reductions Continue Across South and West Region Markets Annual rent declines persisted across the South and West region markets, as operators worked to sustain occupancy amid the elevated supply of the past few years. In fact, the South has now gone nearly three years without annual rent growth, though the depth of cuts has eased somewhat compared to the declines of late 2025. Supply-heavy markets like Austin, Denver, Phoenix and Charlotte continued to see notable annual rent declines, despite enjoying solid demand fundamentals. @include('site.elements.media.image', ['fileId' => 37514, 'attributes' => ['border' => '0', 'width' => '1280', 'height' =>...

Big Markets with Modest Apartment Supply Volumes

2026-03-13T02:00:04-05:00

Ten of the nation’s 50 largest apartment markets added fewer than 1,700 new units in 2025, expanding inventory at 1% or less. Among those markets, Pittsburgh added the fewest new apartments during the year, gaining just 600 or so units and increasing the existing base a mere 0.3%, according to data from RealPage Market Analytics. Adding roughly 1,100 new apartments in 2025 were Memphis, Virginia Beach and Oakland. Detroit and West Palm Beach saw the completion of roughly 1,300 units during the year. San Francisco and Cleveland logged additions of around 1,450 units, while completions in Baltimore and St. Louis totaled roughly 1,600 units. All 10 of those markets recorded year-over-year occupancy change above the U.S. norm in January 2026, with the nation’s largest increase of 1.4 points in Memphis. Despite that occupancy improvement, Memphis’ 4th quarter rate was the only one among those 10 markets below the national average. Similar to occupancy, all of the markets on this list – with the exception of Memphis – logged annual price change at or above the national average as of January 2026, led by growth of 8.7% in San Francisco.

Concession Usage Concentrated in High-Supply South and West

2026-03-13T02:00:04-05:00

Concession usage increased in January across all four national regions, once again led by the higher-supply South (20.5%) and West (16.2%) regions, The Northeast (12.8%) and Midwest (10.7%) also increased discount usage in January as operators sought to capture renters during this typically slower period. Major Texas markets dominated the list of markets offering the most concessions, with four major Lone Start State markets appearing in January. Austin, Denver and San Antonio remained in the top three spots for concession usage in January, with each market posting discounts among roughly one‑third of all stabilized units, according to data from RealPage Market Analytics. The remaining top 10 markets remained largely the same from December, with Houston replacing Fort Worth in the ranking. Discount depths ranged from roughly 10% to 15% across the top 10, with Austin replacing Phoenix for the highest average discount in January at 14.8%.

RealPage Economy Express Episode 59

2026-03-10T02:00:04-05:00

Episode 59: U.S. economic data points to a cooling expansion marked by slower GDP growth, a widening trade gap and consumers growing more cautious. S. GDP growth slowed to 1.4% in 4th quarter, a pace below the 4.4% growth in 3rd quarter. Calendar-year 2025 GDP growth was 2.2%, down from 2.8% in 2024. Consumer spending and investment added to GDP growth, while government spending and exports weakened. The December trade deficit widened to $70.3 billion, up 32.6% from November, as imports rose and exports slipped. For 2025, the trade deficit totaled $901.5 billion. Exports grew 6.2% and imports grew 4.8%, resulting in a drag on GDP. The Conference Board’s Leading Economic Index fell 0.2% in December, its fifth straight monthly decline. December PCE (Personal Consumption Expenditures) inflation rose 0.4% month‑over‑month and 2.9% year‑over‑ Housing starts rose 6.2% in December to a 1.404 million annual rate. Permits reached 1.448 million. New home sales in December were down 1.7% from November but up 3.8% year‑over‑year; median prices fell 2% year-over-year to $414,400 in December. In February 2026, the Consumer Sentiment Index rose to 56.6 but remained 12.5% below the year-earlier level. Consumer Confidence Index reached 91.2 in February 2026. The expectations component was weak at 72, below the recession‑warning threshold of 80 for 13 straight months. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

Chicago and New York See Nation’s Biggest Gains in Home Prices

2026-03-12T02:00:04-05:00

U.S. home price increases continue to decelerate, with annual price gains slowing to the lowest level in over two years. U.S. home prices were up 1.3% year-over-year as of December 2025, according to not seasonally adjusted data from S&P Cotality Case-Shiller U.S. National Home Price Index, which measures average home prices across the nation. That increase was below the annual gain of roughly 4% seen a year earlier and the smallest year-over-year price increase since mid-2023. Looking at more granular results, the S&P Cotality Case-Shiller 20-City Composite Index, which tracks prices in the 20 largest cities, posted a year-over-year increase of 1.4% in December, down from the year-earlier annual increase of 4.6%. The biggest annual price hikes were in Chicago and New York, with both posting gains above 5%. As of December 2025, nine of the 20 cities in the index reported year-over-year price decreases, with the steepest decline of 2.9% in Tampa, with Denver also posting a pullback in excess of 2%.

Colorado’s Largest Markets See Some of the Nation’s Steepest Rent Cuts

2026-03-09T02:00:04-05:00

The three largest apartment markets in Colorado have been cutting rents at some of the most aggressive rates nationally amid elevated supply levels. During the year-ending January 2026, rent cuts in Boulder, Colorado Springs and Denver ranged from roughly 5.5% to 7.5%, landing the three markets in the bottom 10 for annual rent change among the nation’s 150 largest apartment markets, according to data from RealPage Market Analytics. In fact, rent cuts over the past six months have been the steepest each of those Colorado markets have witnessed in more than 15 years. Over the past two years, inventory growth was solid, averaging 7.1% in Colorado Springs and 4.4% in Denver. Those were well above the national average of 2.6% during that period. While the two-year average inventory growth in Boulder (2.7%) was in line with the U.S. norm, it was above the market’s long-term average growth rate of just over 1% annually. Similar to annual rent change, occupancy in all three markets has been running below the U.S. average. Occupancy in Denver and Colorado Springs has been consistently below the national norm for more than four years. However, Boulder was generally running in line with or above the U.S. rate for much of the past four years until dropping below the national average in the second half of 2025. As of January 2026, occupancy registered at 92.9% in Denver, 93.2% in Colorado Springs and 94.1% in Boulder. With new supply expected to slow in the coming year, occupancy and annual rent change are expected to get a lift, though rent cuts may persist.

South Dominates for Build-to-Rent with Nearly 42,000 Units Underway

2026-03-09T02:00:04-05:00

Activity across the build-to-rent (BTR) sector remains active in 2026. Roughly 68,700 BTR units were under construction as of early February, with those units scheduled to complete over the next 36 months, according to RealPage Market Analytics. BTR, as RealPage defines it, includes single-family housing that is fully detached, semi-detached (semi-attached, side-by-side), row houses, duplexes, quadruplexes and townhouses built for rental. BTR ranks as one of the fastest-growing rental segments in the multifamily space and is finding its footing in an economic environment where the affordability gap between owning and renting continues to widen. Further, BTR expands available rental options for renters seeking some of the benefits of single-family ownership. With less urban sprawl but high population growth, the Sun Belt – an economically significant region that includes some South and West region markets – continues its streak as the BTR industry’s market leader. Nearly 55,000 BTR units were underway (including properties in lease-up where construction is ongoing) in the Sun Belt as of early February. The South region garners the lion’s share of the nationwide development total with about 41,700 BTR units under construction. Those units are projected to complete by the end of 2028. @include('site.elements.media.image', ['fileId' => 37406, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Just under 16,100 BTR units are underway in the West, about 23% of the U.S. total. Meanwhile, the Midwest has about 9,100 BTR units under construction followed by the Northeast (1,760 BTR units), accounting for roughly 13% and 3%, respectively. Nationwide, about 60% of BTR construction is centered across 18 markets. Roughly 100 other markets account for the remaining 40% of construction. Phoenix, an ongoing market leader, outshines the next closest market with over 9,000 BTR units in progress, or about 13% of the BTR construction pipeline. Dallas follo...

U.S. Concessions Show No Reprieve in January

2026-03-05T02:00:04-06:00

U.S. apartment concession activity climbed in January 2026, reversing course from December 2025’s modest dip. Nationwide, 16.6% of stabilized apartments offered concessions in January, according to data from RealPage Market Analytics. That was a full point above December’s rate and marks the highest monthly usage since mid-2014. The average January discount of 10.7% held essentially steady with 4th quarter 2025 yet ticked up a slight 0.4 points from October’s reading. Concession levels have trended upward over the past three years and now sit at their deepest discount rate since the post–Great Financial Crisis period (2010). Class A units posted the deepest concession discount at 11%, remaining relatively unchanged since October. However, Class B (10.3%) and Class C (10.8%) product each saw concessions deepen 0.4 points over that period. Class C properties continued to show the highest concession usage, with 23.1% offering a discount in January. By comparison, usage in Class A (12.5%) and Class B (14.6%) units was somewhat milder. Top-tier Class A product was the only segment to record a slight decrease, dipping 0.9 points month-over-month. Across floorplans, concession performance was relatively similar among one-bedroom, two-bedroom and three-bedroom units, landing close to overall U.S. averages. By contrast, efficiency units posted the weakest performance, with 19% offering discounts averaging 12.1%.

South Central Markets to See Mixed Rent Growth in 2026

2026-03-05T02:00:04-06:00

Apartment markets across the South Central region are poised to deliver mixed rent change performance in 2026. Trailing the region, San Antonio and Houston are likely to see modest declines in effective asking rents, with each market slipping about 0.2% in pricing in the coming year. Meanwhile, Austin and Fort Worth should post slight gains, though growth is projected to remain below 1% in 2026. In contrast, Oklahoma City, College Station, Dallas and Tulsa are on track for stronger rent increases of 3% or more in the coming year. With the exception of Dallas, these higher rent growth markets have seen limited new supply and/or feature distinctive demand drivers keeping rent growth intact. For more information on the state of apartment markets across the South Central region, including forecasts, watch the webcast Market Intelligence: South Central Multifamily Market Update.

Apartment Transactions Trend Up for Third Consecutive Quarter

2026-03-04T06:53:04-06:00

U.S. apartment transactions continued to rise during the October to December 2025 time frame. Both the number of properties traded and the dollar volume of transactions have been trending up for the past three quarters. Roughly 1,910 apartment properties changed hands at a value of $60 billion during 4th quarter 2025, according to MSCI Real Capital Analytics. Overall sales volumes were up 4% year-over-year and were 10% above the 3rd quarter 2025 level when around 1,870 properties changed hands for roughly $46.5 billion. Still, recent activity was well below the $55.1 billion quarterly average from the past five years. @include('site.elements.media.image', ['fileId' => 37298, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '561']]) The average price per unit in 4th quarter remained high at $220,684, registering above $200,000 for 16 of the past 18 consecutive quarters. Prior to 2021, the per-unit pricing never exceeded that threshold and averaged roughly $151,000 from 2015 to 2019. Meanwhile, cap rates for apartment transactions occurring in 4th quarter 2025 averaged 5.55%, well above the pandemic-era low of 4.64% from 2nd quarter 2022. Though apartment cap rates have remained above 5.5% for the past two years, they are by far the lowest among major property types, keeping the asset class an attractive commercial real estate investment. @include('site.elements.media.image', ['fileId' => 37299, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) On an annual basis, transactions in calendar 2025 totaled nearly $165.5 billion with 6,955 properties trading hands. That total sales volume was up 9% from 2024, while the number of properties sold was up 14%. Looking back over the past few years, sales dipped in calendar 2020 due to the pandemic, when about 7,300 apartment communities sold for $148.2 billion. That was well below the volume from 2019, when nearly 9,100 properties traded hands for $195 billion. In 2021, transactions...

Multifamily REITs Cautiously Optimistic in 4th Quarter 2025

2026-03-02T02:00:04-06:00

Earnings commentary from the largest publicly traded multifamily REITs in 4th quarter 2025 highlighted a sector that is finally moving past peak supply pressure. With resident retention at historic highs, absorption improving and development pipelines being strategically repositioned, management teams are broadly optimistic about a more constructive 2026, especially in the back half of the year. Mid-America Apartment Communities (MAA) MAA emphasized high resident retention and improving fundamentals despite lingering supply pressures in select Sun Belt metros. Management highlighted that elevated concessions and longer lease-up times continue to delay full earnings contributions by roughly one year. The company guided to a 2026 core FFO midpoint of $8.53 per share and expanded its development pipeline to $932 million, positioning for improved yields as supply moderates. Risks include regulatory impacts in Colorado and California, as well as phaseouts in tax abatements. AvalonBay Communities (AVB) AVB reported a record-low turnover rate of 41%, driven by strong resident satisfaction and fewer new alternatives due to declining starts. Management sees improving fundamentals ahead, with the second half of 2026 revenue growth expected to surpass the first half of 2026 thanks to better job growth, softer comps and lower supply. AVB is also finding high-yield development opportunities, primarily in established East Coast markets, where supply barriers protect long-term returns. Equity Residential (EQR) EQR leadership noted that while 2025 was challenging overall, San Francisco and New York outperformed and are expected to remain strong in 2026. High occupancy and strong renewals continue to anchor performance, even as coastal rent trends diverge. Management expects 2026 stabilization led by its core coastal‑urban markets, though non-core markets may face softer demand. Essex Property Trust (ESS) ESS highlighted improving occupancy (96.3%) and minimal concessions, s...

RealPage Economy Express Episode 58

2026-02-27T02:00:04-06:00

Episode 58: The latest data paints a picture of an economy still growing but showing clear signs of cooling beneath the surface. January payrolls were up by 130,000 jobs, nearly double forecasts, according to the Bureau of Labor Statistics. Unemployment edged down to 4.3%. Benchmark revisions removed 900,000 jobs from 2025 totals, signaling a weaker 2025 labor market than previously understood. The January Consumer Price Index (CPI) slowed to 2.4% year-over-year, while monthly CPI rose 0.2%. Shelter inflation increased 0.2%, the smallest monthly gain in some time. Core CPI rose 0.3% month-over-month. Existing home sales dropped 8.4% in January to 3.91 million annualized, which was the deepest monthly decline in nearly four years. Median existing home prices hit $397,000, only slightly above last year’s rate. Mortgage delinquencies increased to 4.26% in 4th quarter. FHA delinquencies climbed to 11.52%, the highest since mid-2021. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

U.S. Labor Market Begins 2026 Stronger Than Expected After 2025’s Weakness

2026-02-25T02:00:04-06:00

Hiring among U.S. employers picked up in January, exceeding expectations. According to a survey of businesses by the Bureau of Labor Statistics (BLS), U.S. employers added 130,000 jobs in January 2026, the strongest monthly jobs report since December 2024. This strength followed a year of notably weak job gains that were even worse than initially reported, due to recent BLS revisions. January job additions were well above the 48,000 jobs added in December 2025 following a downward revision of 2,000 jobs. In addition, the January jobs report soared past economists’ expectations of a gain of roughly 55,000 to 75,000 jobs. Six of the 11 major industries added jobs in January, with the largest increases in the Education/Health Services (+137,000 jobs) sector, followed by Professional/Business Services (+34,000 jobs), Construction (+33,000 jobs), Other Services (+7,000 jobs), Manufacturing (+5,000 jobs) and Leisure/Hospitality Services (+1,000 jobs). Notable job losses were seen in Government (-42,000 jobs) and Financial Activities (-22,000 jobs). Other major industries losing jobs during the month were Information (-12,000 jobs), Trade/Transportation/Utilities (-9,000 jobs) and Mining/Logging (-2,000 jobs). Meanwhile, the unemployment rate (U3 or headline unemployment rate, which is seasonally adjusted, and is a survey of households) has edged down for two consecutive quarters, landing at 4.3% in January. That was down from the December rate of 4.4% but above the year-earlier rate of 4% and fell in line with the U.S. average of 4.4% from 2015 to 2019. This post is part of a series analyzing employment data from the Bureau of Labor Statistics. For more on this data, read previous posts on Job Growth.

Six Takeaways from the NMHC Annual Meeting

2026-02-24T02:00:04-06:00

The National Multifamily Housing Council’s Annual Meeting and Apartment Strategies Conference occurred at the end of January. Here’s a few takeaways from that event. Takeaway #1: Recognizing Sun Belt Market Performance (and Recovery Timelines) Will Differ For better or worse, the Sun Belt has been maligned in conversation the past few years. There’s certainly substance behind the bitterness, considering that the “Smile States” have seen performance dramatically invert from national pacesetter to national laggard of late. Further, the prolonged protraction has soured the outlook at the past few NMHC Annual/Strategies Conferences. Yet, 2026 brought with it a slightly different tone. While essentially no one expects the Sun Belt to suddenly bounce back to the top of the national leaderboard, there’s a recognition that some markets will see faster (and some slower) recovery timelines. Those with quicker recovery timelines generally have a combination of a significant pullback in scheduled deliveries (e.g., Atlanta, with a 40%-plus decline in expected 2026 deliveries) and/or are further removed from their relative supply peak (e.g. Salt Lake City, now nine quarters removed from peak supply). Takeaway #2: Eager Debt Meets a Less Eager (Though Still Hopeful) Buyer Though everyone’s schedules were busy at NMHC Annual, there may not have been a busier set of schedules than those on the debt side of the industry. And make no mistake: there is a lot of debt out there. As time marches on, there’s a recalibration of expectations when it comes to debt, too. That’s true both on the side of debt funds (who are tempering expectations based on market conditions) and on the side of borrowers (who are becoming increasingly happy to see terms adjust). Still, until seemingly strong fundamentals translate to realized revenue gains, buyers remain patient. And among the deals that are transacting, there’s a hyper-localization b...

Fall 2026 Pre-Lease Season Makes Notable Improvement in January

2026-03-04T06:53:04-06:00

The U.S. student housing market logged a successful January. After starting the Fall 2026 pre-lease season at the slowest pace in over a decade, the market is quickly closing that gap. At the end of January, 37.3% of student housing beds across the U.S. were leased for the Fall 2026 semester. From December to January, leasing increased by 1,020 basis points (bps), which was right in line with the solid increase seen in January 2025 and well ahead of the decade average for January activity in the Student Housing sector. While the market is still catching up, momentum is building fast. In the past 10 years, January pre-leasing has averaged at 38.2%, a bit above Fall 2026’s January showing. However, the gap between the current rate and the 10-year average (90 bps) is much smaller now than it was just one month ago (300 bps). @include('site.elements.media.image', ['fileId' => 37219, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) While Fall 2026’s January pre-lease rate is ahead of Fall 2025’s January reading, however, it was still behind the January showings topping 45% seen in Fall 2023 and Fall 2024. It should be noted, however, that while Fall 2025 pre-leasing started out slowly, it did end up being the strongest season in recent history. A slow start doesn’t always equate to a weak season, as evidenced by the strong momentum that has built in the past three months. (The core 175 universities tracked and forecasted by RealPage saw even more progress, with 39.4% leased as of January, quite a boost from the 28.9% leased in December.) Pre-lease rates made sizable progress in January in apartments located further from campus. Those more than one mile from campus were 39.3% pre-leased in January, which was a 1,240-bps jump over the December showing. Properties closest – within a half mile of campus – were 37.1% pre-leased as of January, while communities within a half mile to one mile of campus were 36.6% pre-leased. These sectors both mad...

Services: The Only Sector Still Gaining Jobs at the End of 2025

2026-02-20T02:00:03-06:00

Employment trends across the U.S. showed a clear loss of momentum in 2025, and by the end of the year, the Services sector was the only meaningful source of job additions. As of November, blue‑collar jobs slipped back into negative territory after a long period of decline, according to data from the Bureau of Labor Statistics. Blue-collar jobs include the Mining/ Logging/Construction, Manufacturing and Trade/Transportation/Utilities sectors. Government employment, including Federal, State and Local jobs, also turned negative by the end of 2025. White‑collar roles – those in the Information, Financial Activities and Professional/Business Services sectors, have been flat to slightly negative for more than a year. Services – consisting of the Education/Health Services, Leisure/Hospitality Services and Other Services sectors – remained the only sector still posting gains by the end of 2025, though growth in that industry has gradually eased throughout the year. For more information on the state of the U.S. economy, watch the webcast Macroeconomic Forces Shaping Rental Housing.

Markets Still Waiting for Apartment Supply to Peak

2026-02-05T09:51:42-06:00

While much of the U.S. logged peak apartment supply volumes in the past two years, a handful of markets have not yet reached their own pinnacle. Out of the nation’s 50 largest apartment markets, five are still waiting for supply to peak and are set to hit their highest volumes in the coming two years, according to data from RealPage Market Analytics. Most of these markets are in California. San Diego is set to see supply volumes peak soon, with over 7,800 units scheduled to deliver in the year-ending 2nd quarter 2026. Markets scheduled to hit annual supply records in late 2026 include Anaheim, Detroit and Los Angeles. Pinnacles are scheduled at 3,400 to 4,400 units in Anaheim and Detroit, while Los Angles is set to see a peak of over 12,300 units. Greensboro is scheduled to see supply hit its high point in the year-ending 2nd quarter 2027, when over 2,300 units are slated to complete.

U.S. Apartment Occupancy Stabilizes as Rent Cuts Ease in January

2026-03-04T06:53:04-06:00

The decline of occupancy in the U.S. apartment market was stemmed in January, and rent cuts eased as completion volumes fell. After six consecutive months of mild decline, apartment occupancy bumped up 10 basis points (bps) in January to 94.7%, according to data from RealPage Market Analytics. Still, U.S. occupancy was down 10 bps year-over-year and was 100 bps behind the recent peak from April 2025. @include('site.elements.media.image', ['fileId' => 37143, 'attributes' => ['border' => '0', 'width' => '1280', 'height' => '1547']]) Effective asking rents increased in January, for the first time in seven months. U.S. prices climbed 0.2% over December rates, marking a change in performance after a long period of decline. This recent increase, however, did not completely stem the annual decline, as January rents were 0.4% below year-earlier rates. The nation’s South and West region markets continued to see the deepest rent cuts, while East and West Coast tech hubs are enjoying a rebound. Rent Cuts Persist Across South and West Region Markets Rent cuts continued across the South and West regions in the past year, as operators tried to keep occupancy afloat in a high supply environment. In fact, the South has not recorded any annual rent growth since mid-2023. However, annual rent cuts in both regions are not quite as bad as they were just a few months ago. Supply-heavy areas like Austin, Denver, Phoenix and Charlotte were some of the hardest-hit, with rent cuts persisting despite solid apartment demand. @include('site.elements.media.image', ['fileId' => 37144, 'attributes' => ['border' => '0', 'width' => '1280', 'height' => '746']]) Other markets that continued to see deep rent cuts were tourism-dependent markets such as Tampa and Nashville. Softness in markets that rely on tourism can be an early sign of economic weakness as consumers tighten discretionary spending on travel. Tech Hubs Continue to See Big Rent Growth Renewed renter demand in tech‑centric coas...

Big Markets Still Seeing Apartment Demand in 4th Quarter

2026-03-04T06:53:04-06:00

While net move-outs swept the U.S. apartment market at the end of 2025, a handful of large markets continued to see solid absorption volumes. The U.S. apartment market posted seasonal net move-outs in 4th quarter 2025, for the first time in three years. This shift followed a 3rd quarter absorption cooldown and points to a broader return to pre‑pandemic normalcy after an extended period of rapid growth. @include('site.elements.media.image', ['fileId' => 37090, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Out of the nation’s largest 50 apartment markets, only 14 continued to log positive apartment demand in 4th quarter. Of those, only four garnered more than 1,000 units of demand in the October to December time frame. New York The nation’s largest apartment market led the U.S. for apartment demand in 4th quarter, absorbing about 4,300 units. That was a bit ahead of the market’s five-year average for quarterly demand of about 4,600 units and marked the seventh consecutive quarter of positive absorption. Apartment occupancy in New York was the tightest among the nation’s 50 largest markets, at 96.9% in January 2026. New York occupancy started off the year strong after hovering around the 97% mark since April 2024. @include('site.elements.media.image', ['fileId' => 37091, 'attributes' => ['border' => '0', 'width' => '1280', 'height' => '1024']]) Phoenix Phoenix apartment demand came very close to New York’s, with nearly 4,000 units absorbed in 4th quarter. This marked the 8th consecutive quarter of apartment demand above or very close to the 4,000-unit mark for Phoenix. However, that volume has come down a bit after peaking in late 2024. Only two other West region markets logged positive demand in 4th quarter. San Diego absorbed just shy of 1,000 units, while Oakland stirred up roughly 40 units in the October to December time frame. Fort Worth The smaller side of the Dallas/Fort Worth Metroplex was the only large Texas market to se...

RealPage Economy Express Episode 57

2026-02-12T02:00:03-06:00

Episode 57: Inflation eased as the trade deficit widened, housing cooled, and the Fed held rates steady amid a softening labor market. Weekly unemployment insurance claims held near recent levels. The four‑week moving average was just above 206,000 claims. GDP was revised up to a 4.4% annualized pace in 3rd quarter. Consumer spending rose 3.5% and private domestic demand increased 2.9%. The U.S. trade deficit widened sharply in November, jumping nearly 95%, and is running about 4% higher year-over-year. Pending home sales fell 9.3% in December and were 3% lower than a year earlier, with declines across all regions. Mortgage applications dropped 8.5% in the latest weekly data, and refinancing fell 16%. Home prices rose 1.4% year-over-year in November, but real values declined due to higher inflation. Personal consumption expenditures (PCE) increased 2.8% year over year in November, with a 0.2% monthly gain. Meanwhile, producer prices rose 0.5% in the month and 3% over the year. The Federal Reserve held its federal funds rate at 3.5%–3.75% and signaled a pause in further rate cuts. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

Charlotte Led the Nation for Job Gains in 2025

2026-03-04T06:53:03-06:00

The Charlotte-Concord-Gastonia metro area led the country for job gains for 2025 with 37,600 new jobs created for the year. That was an improvement of 21,800 jobs from 2024’s total. However, the Queen City’s jump to the top was less about their gains, as it was about the falling off of other previously strong markets. The December release of employment estimates from the Bureau of Labor Statistics (BLS) revealed that job gains have slowed sharply or are retrenching in many of the nation’s metropolitan areas compared to one year ago. Only two of last year’s top markets for job gains returned to the top 10 list for calendar 2025. New York and Houston remained among the top markets for job gains, but their numbers were drastically reduced. Missing from the list were such typically strong markets like Washington, DC, Dallas, Austin, Atlanta and Los Angeles. Moving up to the top 10 list in December were Philadelphia, Chicago, Raleigh/Durham, Salt Lake City, Newark/New Brunswick and Tampa. @include('site.elements.media.image', ['fileId' => 37047, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '642']]) Perennial leader – New York – saw a reduction in job creation of almost 111,000 jobs compared to last year, while Houston’s gains were down by almost 35,000 jobs. Washington, DC’s shutdown-related losses of about 56,000 jobs in 2025 swung their net job change to -118,400. The remainder of last year’s top 10 markets averaged decreases of from 30,000 to 45,000 jobs. At the end of 2024, the top 10 job creation markets summed to 493,600 new jobs compared to this year’s top 10 total of 233,500 jobs. The current top list members created 337,500 new jobs in 2024, a reduction of about 31% or 104,300 fewer jobs. The top 10 markets were not the only ones to see lower job creation totals, as the next 10 markets (#11 to #20) of RealPage’s top job gain markets saw their total gains decrease 23.4% from last year to 110,200 new jobs. There were no markets that gain...

Apartment Concessions Increase Across Texas

2026-02-11T02:00:04-06:00

U.S. apartment concessions remained largely unchanged from November to December 2025, ending the year with usage most prevalent in supply‑heavy markets. Regionally, concession usage remained highest in the South (19.0%) and West (15.4%), while the Northeast (11.4%) and Midwest (10.4%) posted more moderate levels. This geographic distribution is mirrored at the market level: all 10 of the highest‑usage metros are located in the South and West, underscoring the strong relationship between discount activity and concentrated new supply. While there was some shuffling in the rankings month‑over‑month, Austin, Denver and San Antonio remained in the top three spots for concession usage in December, each hovering near the one‑third mark of all stabilized units. Two Florida markets – Jacksonville and Tampa – fell out of the top 10 in December, replaced by newcomers Dallas and Fort Worth, bringing the count of large Texas markets in the top tier to four. Discount depths ranged from roughly 10% to 14% across the top 10, with Phoenix posting the highest average discount in December at 14.3%.

Apartment Supply Volumes Fall Below Historic Records

2026-03-04T06:53:03-06:00

After hitting historically high levels for 10 consecutive quarters, U.S. apartment supply fell back into a more normal range in 4th quarter. Roughly 89,400 units wrapped up construction in 4th quarter 2025, marking the first time in 11 quarters that deliveries fell below the 100,000-unit mark. Quarterly completion volumes broke past 100,000 units in 2nd quarter 2023 for the first time since RealPage Market Analytics began tracking the U.S. apartment market in the 1990s. Delivery totals then increased for five straight quarters, peaking in 3rd quarter 2024 before ebbing in the last three months of 2024. The drop in quarterly deliveries in 2025 has been notably steep, though volumes did not fall below that 100,000-unit mark until the final quarter of the year. @include('site.elements.media.image', ['fileId' => 37019, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) All regions of the U.S. saw supply volumes ease in 4th quarter. The South region continued to deliver the most new apartments with roughly 47,500 units completed in 4th quarter. That was more than double the volume of units completed in the next most prolific region: the West (22,008 units). However, the South has also seen the steepest pullback in delivery volumes recently. Completions in the South peaked at nearly 91,800 units in 3rd quarter 2024 and volumes have fallen off every quarter since. The last three months of 2025 marked the first time South region completions totaled less than 50,000 units in 11 quarters. @include('site.elements.media.image', ['fileId' => 37020, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) The West region saw over 22,000 units deliver in 4th quarter 2025, which was about 3,700 units fewer than what came online in the region in 3rd quarter 2025. This region also peaked in 3rd quarter 2024 (over 37,200 units), and recent totals are well behind that mark. Milder delivery volumes were seen in the Northeast (9,961 units) an...

U.S. Apartment Concessions Hold Steady in December

2026-02-06T02:00:03-06:00

Following typical seasonal patterns, U.S. apartment concessions in December remained relatively unchanged from November’s performance, as operators sought to capture prospective renters during a busy and distraction-heavy time of year. December often brings stable or slightly elevated concession activity due to cold weather, holiday travel and generally fewer household moves. Nationwide, 15.6% of stabilized apartments offered concessions in December, according to data from RealPage Market Analytics. This marks the highest December usage rate since December 2016, when concessions usage reached 16.1%. The average December discount of 10.5% held essentially steady with October and November, both of which hovered around 10%. The October through December average sits at the highest discount depth since the post–Great Financial Crisis period (2010) and reflects ongoing efforts to absorb the elevated wave of new supply concentrated across the Sun Belt region. By product class, Class A units posted the deepest concession discount at 11.0%, followed closely by Class B (10.2%) and Class C (10.5%) units. However, Class C properties continued to show the highest usage, with 19.1% offering a discount in December. Concession usage in Class A and B stock was comparatively milder at roughly 13% to 14%. Still, all three product classes saw concession usage tick down very slightly (by generally less than one point) from November, which was effectively the monthly high for 2025.

Fall 2026 Pre-Lease Season Sees a Second Straight Month of Improvement

2026-03-04T06:53:03-06:00

December marked a second month of notable boost in pre-lease activity after the U.S. student housing market started at the slowest pace in a decade. As of December, 27.1% of student housing beds across the U.S. were leased for the Fall 2026 semester. That was notably ahead of the November showing and a sizable boost over the October rate, which was the slowest start to a pre-lease season since Fall 2016. @include('site.elements.media.image', ['fileId' => 36962, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) While Fall 2026’s December pre-lease rate is ahead of Fall 2025’s December reading, it was still behind the December showings near 40% seen in Fall 2024 and Fall 2023. It should be noted, however, that while Fall 2025 started out slowly, it did end up being the strongest season in recent history. A slow start doesn’t always end up in a weak season, as evidenced by the strong showing in the past two months. (The core 175 universities tracked and forecasted by RealPage saw even more sizable progress, with 28.9% leased as of December, quite a boost from the 18.4% leased in November.) Rates were tightly clustered across distances from campus. Properties closest – within a half mile of campus – saw a big bump, taking them to 27.2% leased as of December. Those units furthest – more than one mile – from campus were 27% leased, while communities within a half mile to one mile of campus were 26.9% pre-leased as of December. For more information on the state of the student housing industry, read previous posts on Student Housing.

Weak Labor Market Impacts Forecast

2026-02-03T02:00:04-06:00

As 2025 unfolded, the labor market quietly shifted from a source of strength to one of the economy’s main pressure points. Job growth slowed sharply, with the economy adding just 584,000 jobs. That marked the weakest annual gain since 2003, excluding the recessionary years of 2008, 2009 and 2020. The 2025 slowdown became more pronounced toward year-end. During the final three months of 2025, payrolls declined by 67,000 jobs, something not seen since the period following the financial crisis. This weakness was not evenly distributed across the year. The first half of 2025 initially appeared relatively healthy, as nearly 90% of the year’s total job gains were recorded between January and May. That momentum faded in the second half. After modest job losses in June, the economy added fewer than 90,000 jobs from July through December, making it the weakest second half for employment growth since 2009. Wage growth moderated alongside slower hiring but remained supportive of household incomes. In 4th quarter, average hourly earnings for private sector workers rose 3.7% from a year earlier. For all of 2025, wages increased 3.8%, down slightly from 2024. Consumer price inflation stood at 2.7% in November, above the spring low but below the pace seen at the start of the year. With inflation easing and the labor market weakening more than expected, the Federal Reserve shifted toward supporting growth. Policymakers delivered three quarter point rate cuts in 2025, including two in the final quarter, bringing the federal funds rate to a range of 3.50% to 3.75% by year end. Against this backdrop, our apartment market outlook has been revised lower. At the national level, effective rents are now expected to grow about 1.9%, following a nearly 60-basis-point decline in 2025. Among the top 50 markets, only about 8% are expected to achieve growth in the 3% range in 2026, led by Miami. More than half of large markets are forecasted to post growth in the 2% range, while r...

RealPage Economy Express Episode 56

2026-01-27T02:00:03-06:00

Episode 56: The labor market continued to cool, but interest rates declined, leading to a surge in mortgage activity. Employers added 50,000 jobs in December; unemployment held at 4.4%, according to the Bureau of Labor Statistics. Total payroll growth for 2025 reached 584,000 jobs. Average hourly earnings rose 0.3% in December and 3.8% year over year. Job openings held at 7.1 million in November, nearly 900,000 fewer than a year earlier. Headline CPI increased 0.3% in December and 2.7% year over year; core CPI rose 2.6% year-over-year. Food prices climbed 0.7% in December; energy prices rose 0.3%. Producer prices increased 0.2% in November; core producer prices are up 3.5% year-over-year. Single‑family starts rose more than 5%; completions increased modestly but remain below last year’s levels. Existing home sales rose 5.1% in December to a 4.35 million for the year. Mortgage applications surged nearly 29% last week; purchase activity was up 13% year-over-year. The average 30‑year fixed mortgage rate dipped to about 6.2%. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

Potential Tailwinds for the U.S. Apartment Market in 2026

2026-01-30T02:00:03-06:00

We previous covered headwinds that could shape downside risk in the U.S. apartment market in 2026, with no shortage of themes to discuss. In fact, some ancillary factors were excluded in the interest of sparing word count. But despite all the negative attention on what could go wrong, there remains a set of influences in the macroeconomy that could in fact inform an upside scenario in 2026. Though an upside scenario in the coming 12 months likely underwhelms versus an upside scenario from the 2010s cycle, it’s still important to address a handful of positive influences – some of which are already in place – that could shape a more optimistic set of outcomes in 2026. Tailwind #1: Wage Growth (and Real Wage Growth at That) Wages continue to grow at a faster-than-usual pace, something that has been a sort of unheralded positive in the broader economy the past few years. Understandably, the counter argument to stronger-than-usual wage growth was concurrent inflation. Indeed, inflation outpaced strong wage growth in 2021 and 2022, meaning that real wage growth (despite being nominally strong) was declining. That’s shifted in recent years, however. Not only has inflation continued to mercifully cool (albeit at a slower than desired pace) off its blistering peak, but strong wage growth has remained in place. Today then, real wages are expanding at a pace that can help support additional household formation. This has been further boosted in the past two to three years as well, especially in the multifamily sector as the U.S. has seen rents generally flatline during that period. Tailwind #2: Affordability Is at Its Healthiest Level in Six Years Wage growth ties into another unheralded strength that’s seemingly boosted household formation. That is, the share of income going toward rent (based on newly signed leases) is at its lowest level since 2018/2019. As inflation at-large cools and the share of wallet allocated towards rent eases simulta...

A Peek Inside the Build-to-Rent Playbook

2026-03-04T06:53:03-06:00

Behind the curtain of the build-to-rent (BTR) space is a well-developed playbook constructed from what was once a speculative investment but now ranks as one of the fastest-growing rental segments in the multifamily space. Several key factors are driving the momentum seen in the BTR space. First and foremost is the affordability gap between owning and renting, which has reached the widest gap on record. The average U.S. home surpasses median household income by more than seven times. Additionally, single-family mortgage payments eclipse rents notably. Around 2021, mortgage costs began to climb sharply. Today, the average monthly mortgage payment is over $2,800, about 50% higher than the average monthly rent payment which averaged about $1,900 per month as of 2025. @include('site.elements.media.image', ['fileId' => 36411, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Several factors contribute to the gap including the cost of property taxes and insurance which account for nearly one-third of the monthly mortgage payment in many markets. It’s important to note that BTR does not replace multifamily. Instead, it extends the choices renters, investors, developers and operators have in the rental market. Importantly, it serves a niche of renters that may remain in the rental market longer, filling a desire for space, privacy and community, some of those added benefits that accompany single-family living. As of 2025, RealPage is tracking nearly 20.3 million conventional apartment units. The rental universe is not simply composed of multifamily units. Nearly 20 million single-family homes are leased out across the nation’s neighborhoods, often managed by individual owners. @include('site.elements.media.image', ['fileId' => 36410, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) BTR adds a third sphere to rental options filling a niche that provides residents with rental experiences similar to single-family ownersh...

Latest Metro Jobs Numbers Reveal Slowing Gains

2026-03-04T06:53:03-06:00

The most recent employment data from the Bureau of Labor Statistics (BLS) at the MSA level indicates that job gains in the nation’s top markets are continuing to slow. As of November, RealPage’s list of the top 10 markets for job creation totaled 263,700 new jobs compared to 297,200 new jobs created in these same markets one year ago and 309,900 new jobs for the year-ending in October. This tracks the overall trend nationally of easing employment growth. More importantly, the top 10 jobs market list for November looks nothing like the top 10 list one year ago. Only New York-White Plains/Kiryas Joel-Poughkeepsie, NY, Houston-Pasadena-The Woodlands, TX and Phoenix-Mesa-Chandler, AZ were among the top job creation markets in November. Missing from the November list were markets that were typically among the best in the nation for new jobs – Dallas, Washington, DC, Los Angeles, Austin and Atlanta. In their place are markets like Philadelphia, Charlotte, Nashville, Tampa and Raleigh/Durham. Outside of New York, most of the top 10 markets gained between 25,000 to 60,000 new jobs one year ago, while November’s top 10 markets ranged from 15,000 to 40,000 new jobs (excluding the 60,400 jobs created for the year in New York, about half of last year’s total). @include('site.elements.media.image', ['fileId' => 36353, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '642']]) While New York has seen its employment gains slow by almost half from one year ago, the Big Apple still leads the nation for job creation through November. The latest top 10 list is diverse geographically, with a stronger representation in the Northeast, Mid-Atlantic and upper Midwest regions. The normally dominant Texas economy is represented by only Houston. Some have argued that the typically strong connection between job gains and apartment demand has weakened post-COVID, but nine of the top 10 job creation markets are also among the top 20 markets for apartment absorption in 2025 (...

U.S. Sees Its Smallest December Job Gain Since the Pandemic

2026-01-23T02:00:03-06:00

U.S. employers eased up on hiring in December. According to a survey of businesses by the Bureau of Labor Statistics, U.S. employers added 50,000 jobs in December, the weakest December jobs report since the COVID-19 slump in 2020. December job additions were slightly less than the 55,000 jobs added in November following a downward revision of 8,000 jobs. In addition, the December jobs report was below economists’ expectations of a gain of roughly 60,000 jobs. Five of the 11 major industries added jobs in December, with the largest increases in the Leisure/Hospitality Services (+47,000 jobs) and Education/Health Services (+41,000 jobs) sectors, followed by Government (+13,000 jobs), Financial Activities (+7,000 jobs) and Other Services (+5,000 jobs). Notable job losses were seen in Trade/Transportation/Utilities (-33,000 jobs). Other major industries losing jobs during the month were Construction (-11,000 jobs), Professional/Business Services (-9,000 jobs), Manufacturing (-8,000 jobs) and Mining/Logging (-2,000 jobs), while the job count in the Information sector was unchanged. Meanwhile, the unemployment rate (U3 or headline unemployment rate, which is seasonally adjusted, and is a survey of households) edged lower to 4.4% in December, down from 4.5% in November but above the year earlier rate of 4.2%. Still, unemployment remains low by historical standards. This post is part of a series analyzing employment data from the Bureau of Labor Statistics. For more on this data, read previous posts on Job Growth.

Potential Headwinds for the U.S. Apartment Market in 2026

2026-01-22T02:00:04-06:00

Though it’s not uncommon for personal experience to differ from a broader group’s experience, sentiment surrounding today’s economic climate feels arguably as disconnected from the macro reality than ever before. Despite what many headlines might seem to indicate, macroeconomic stats such as strong, continued wage growth, cooling inflation, and robust GDP figures (among a number of other ancillary datapoints not named here in the interest of brevity) support a narrative of an overall sturdy economy.That isn’t to say, however, that the more disenfranchised personal view of many should be totally dismissed. Inflation – while cooling on its year-over-year measure – has a cumulative impact to consider and has undoubtedly affected the psyche of many people. Labor market constraints have put a damper on one of the most vital macroeconomic metrics as well (job growth). And the heaviness that comes with today’s 24-hour news cycle has a very real impact on the perception of the masses, one of many subthemes that’s captured by today’s intensely dour consumer sentiment. All this is to say then that there are a cloudy set of conditions at the onset of the 2026 calendar year. In this three-part series, we’ll discuss headwinds that could affect the U.S. apartment market, tailwinds that could unlock surprising upside in the sector, and finally a coalesced RealPage house view of where the industry is – and where it will head – over the next 12 months. Headwind #1: Soft Labor Market Fundamentals It feels almost irresponsible to start a blog discussing macro headwinds without immediately addressing the proverbial elephant in the room which is a rapidly cooling labor market. Outside of the pandemic era, today’s job growth is slower than any other period in the past 15 years. The U.S. is estimated to have added fewer than one million jobs in calendar year 2025, the lowest such rate (excluding 2020) si...

Rent Cuts Deepen in 4th Quarter as Demand Volumes Return to Historic Norms

2026-03-04T06:53:03-06:00

The U.S. apartment market recorded seasonal net move-outs in 4th quarter for the first time in three years. After the notable slowdown in 3rd quarter, this latest performance signals a return to more normal levels after the streak of rapid growth the market has seen since the end of the COVID-19 pandemic. Nearly 40,400 units of net apartment demand was lost in 4th quarter 2025, cutting annual demand down to just over 365,900 units. That was the nation’s smallest annual absorption tally since 2nd quarter 2024, returning the market to a more baseline performance after the historic peaks of 2024. The latest performance ranks somewhere between the five-year average annual demand tally of 370,000 units and the 10-year norm of about 340,000 units. @include('site.elements.media.image', ['fileId' => 36312, 'attributes' => ['border' => '0', 'width' => '1280', 'height' => '1547']]) Apartment supply volumes are also slowing, but not as rapidly as demand. Roughly 409,500 units wrapped up construction across the U.S. in calendar 2025, including about 89,400 units in 4th quarter alone. This marks a fourth consecutive quarter of decline after annual supply volumes peaked at over 586,100 units in 4th quarter 2024. Still, like demand, the latest round of apartment deliveries is still a bit ahead of decade norms. As a result of falling demand volumes, U.S. apartment occupancy fell below the essentially full mark by the end of 2025. At 94.8%, 4th quarter occupancy was down 60 basis points (bps) quarter-over-quarter. It’s common to see occupancy backtrack in the seasonal downturn at the end of the year, but this decline also marks a new trend: two straight quarters of downturn after five consecutive quarters of occupancy increases. Rent Cuts Get Deeper in 4th Quarter Much like occupancy, effective asking rents also trended downward at the end of the year. Prices fell 1.7% in the final three months of 2025, marking two consecutive quarters of decline. While it’s common for operato...

Southeast Apartment Supply Volumes Easing

2026-01-21T02:00:04-06:00

Apartment supply volumes across the Southeast have come down in recent quarters after peaking in 2024. In the year-ending 3rd quarter, less than 50,000 units were delivered across Southeast apartment markets. That was well behind the peak delivery load of more than 65,000 units in the region during calendar 2024. The volume of units currently underway in the Southeast has also fallen, which will cool annual deliveries in the coming two years even further. By 3rd quarter 2027, annual supply in Southeast apartment markets is set to hit below pre-COVID averages, at about 24,000 units. For more information on the state of Southeast apartment markets, including forecasts, watch the webcast Market Intelligence: Q4 Southeast Update.

Phoenix Tops the Nation for Apartment Demand

2026-01-19T02:00:04-06:00

Phoenix garnered more apartment demand than any other market nationwide in 3rd quarter. The market absorbed over 6,000 units in the July to September time frame, according to data from RealPage Market Analytics. That 3rd quarter showing in Phoenix was the strongest nationwide – by far. The next big quarterly demand tally on the top performer list was in Atlanta at around 3,500 units. Absorption in Phoenix was well ahead of what this market typically sees in 3rd quarter. The quarterly average for the market was closer to 2,700 units in the past decade’s data set. However, the market has picked up demand performance in tandem with supply additions in recent years. In fact, Phoenix’s latest showing was a bit behind the quarterly demand volumes hitting between roughly 7,000 and 9,000 units seen in the past five quarters. Additionally, 3rd quarter demand in Phoenix was well behind concurrent completion volumes, which reverses a trend this market has seen of demand topping supply for three consecutive quarters prior to this one.

What We Got Right - and Wrong - About the Apartment Market in 2025

2026-01-16T02:00:03-06:00

Calendar 2025 was a year of surprises for the U.S. apartment market. As we start the new year, it’s worth taking a moment to revisit some of the predictions we made for the apartment market last year, to see where our forecasts aligned with reality – and where the market threw us curveballs. Supply Still Rules the Rent Growth Story Our first prediction wasn’t exactly bold – more of a reminder that Econ 101 still applies. We said rent growth would continue to split between markets with low supply and those with high supply. That’s exactly what happened. In fact, the relationship between supply and rent growth played out even more clearly than we anticipated. States that delivered inventory faster than the national average almost universally saw rent cuts in 2025. States with slower-than-average inventory growth posted rent gains averaging about 2.1%. Conversely, states with rent declines saw drops nearly proportional to their pace of supply growth. Supply Trends Also Drove Concessions Property owners relied heavily on concessions to maintain occupancy, just as predicted, though the patterns varied across markets. Nationally, only a small share of markets saw meaningful increases, while a much larger group experienced notable declines, suggesting stronger than expected demand in many areas. However, among properties that did use concessions, the value of those incentives surged. The average concession reached the equivalent of 36 days of free rent, with some high‑supply markets like Austin, Denver, San Antonio and Jacksonville offering up to three months free to stay competitive as new deliveries flooded the market. Class A Occupancy Narrowed the Gap in 2025 Although Class A occupancy did not quite surpass Class B and C units as predicted, the overall trend moved in the expected direction, with Class A product meaningfully closing the gap. By 3rd quarter 2025, stabilized Class A properties reached roughly 95% occupancy, a strong ou...

More Than 200 Developers Working on Build-to-Rent Properties

2026-02-12T17:53:38-06:00

More than 64,250 build-to-rent (BTR) units are under construction by over 200 developers – outside of private or individual investors. Eight developers lead the pack with 1,000 or more BTR units under construction as of November, according to RealPage Market Analytics. Only two developers boast 2,000 or more BTR units underway: Scottsdale, AZ-based Empire Group and Scottsdale, AZ-based Taylor Morrison Inc. With more than 2,300 BTR units under construction across the Midwest, South and West, the Empire Group easily claims the #1 spot. Those units are expected to complete through November 2027. The only other developer surpassing the 2,000+ BTR unit mark is Taylor Morrison with 2,171 BTR units under way, completing through mid-2027 in the South and West. Four developers follow with more than 1,200 BTR units under construction each: Quinn Residences (1,946 units) Cavan Companies (1,893 BTR units), NexMetro Communities (1,333 BTR units), and Core Spaces (1,206 units). Though the BTR construction pipeline has started tapering, we estimate just over 120,000 units are operational nationwide with over 139,000 in planning stages.

RealPage Economy Express Episode 55

2026-01-03T02:00:03-06:00

Episode 55: The latest wave of delayed data shows a gently cooling labor market, stabilizing housing activity and the Federal Reserve shifting into a more patient stance. Employers added 64,000 jobs in November, with health care and construction doing most of the heavy lifting. Wages were up 3.5% from a year ago – cooler than before but still beating inflation. Weekly jobless claims dipped to 224,000, and the insured unemployment rate held steady at 1.2%. Existing home sales inched up for the third month in a row, rising 0.5% year-over-year in November, helped along by lower mortgage rates and tighter inventory. Mortgage applications fell about 4% last week – pretty normal for late December – with both purchase and refinancing activity still running ahead of last year. The average 30‑year mortgage interest rate nudged up to around 6.4%. Consumer sentiment was revised to 52.9 in December, with inflation expectations easing to 4.2%. Inflation continues to cool, with the CPI rising just 0.2% from September to November and 2.7% in the year-ending November. The Fed delivered another quarter‑point rate cut, putting the funds rate between 3.5% and 3.75%, and hit pause on balance‑sheet runoff while restarting Treasury purchases. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

Top RealPage Analytics Blogs of 2025

2026-01-04T02:00:03-06:00

The top stories of 2025 reflected a year of transition. The industry moved from grappling with record supply that peaked in late 2024 to unprecedented demand that topped out in mid-2025. While the U.S. apartment market tried to right itself after a once-in-a-generation supply wave, economic uncertainty surrounding tariffs and inflation introduced other challenges in an already complex multifamily landscape. Throughout the year, the RealPage Analytics blog drew on insights from RealPage Market Analytics as well as sources like the Bureau of Labor Statistics, the U.S. Census Bureau, and MSCI/Real Capital Analytics to provide clarity with data-driven analysis from our team of economists, analysts and writers. Here are the most-read RealPage Analytics stories of 2025. #1: Why is 2025 Likely to Have Strong Apartment Demand if Job Growth Has Slowed? One of the first articles we posted in 2025 drew audiences in, as Chief Economist Carl Whitaker explained the RealPage forecast called for improved U.S. apartment demand, despite slowing job growth. Factors expected to spur demand across the nation included improving affordability, limited single-family alternatives, rising consumer confidence and higher resident retention. #2: Healthy 1st Quarter Demand as Supply Ebbs Also early in the year, readers were captivated by the break in the nation’s unprecedented supply wave. Annual delivery volumes remained historically high but at least came down – finally – after eight quarters of incline. Annual absorption also started to rival the demand boom of early 2022. Economic signals remained mixed, with steady but slowing job growth, pressured consumer confidence and lingering uncertainty around tariffs and inflation. #3: Supply Falls Again as Demand Peaks The 2nd quarter update also drew heavy attention, as the U.S. apartment market absorbed more than 794,000 units annually – the highest demand tally on record. Additionally, the supply wave officially fel...

Volatility Continues in the U.S. Labor Market

2025-12-30T02:00:03-06:00

Today, the U.S. Bureau of Labor Statistics released data for November and partial data for October, following a six-week blackout in official labor market data caused by the federal government shutdown which ended on November 12. U.S. employers added 64,000 jobs in November, according to a survey of businesses by the Bureau of Labor Statistics. November job additions were up from the 105,000 jobs lost in October, which was primarily due to steep losses in Federal Government positions (-162,000 jobs). The November jobs report was also above economists’ expectations of a gain of roughly 40,000 jobs. However, the August estimate was revised down by 22,000 jobs to show a net loss of 26,000 jobs, while the September figure was revised down by 11,000 jobs, for a gain of 108,000 jobs. With those revisions, employment in August and September combined came in 33,000 jobs below the previously reported figures. The October data was first published today and thus there are no revisions for the month. Only four of the 11 major industries added jobs in November, with the largest increase in Education/Health Services (+65,000 jobs). Notable job losses were seen in the Trade/Transportation/Utilities and Leisure/Hospitality Services sectors, both down by 12,000 jobs. Meanwhile, the unemployment rate (U3 or headline unemployment rate, which is seasonally adjusted and is a survey of households) registered at 4.6% in November, which was the highest reading since September 2021. The October unemployment rate was not released due to furloughed federal workers unable to conduct the usual household survey, marking the first time in nearly eight decades that a monthly unemployment rate was not published. This post is part of a series analyzing employment data from the Bureau of Labor Statistics. For more on this data, read previous posts on Job Growth.

Slowing Performance Across Denver Apartment Market

2026-03-04T06:53:03-06:00

A ripe construction pipeline across the Denver apartment market has spurred demand over the last few years, but occupancy and rent change fundamentals are feeling the pinch. The Denver apartment market, home to 360,552 existing units, is situated between the Rocky Mountains to the west and the High Plains to the east. Known as the Mile-High City, Denver serves as a cultural hub sitting nearly 600 miles from the next most populous metropolitan area and is sandwiched between the Boulder and Colorado Springs apartment markets. As Colorado’s capital city, Denver benefits from a diverse mix of industries including aerospace, life science, IT-software and financial services. Sometimes referred to as the Wall Street of the West, Denver is home to four Fortune 500 companies – Newmont, DaVita, VF and Ovintiv. @include('site.elements.media.image', ['fileId' => 36082, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Outdoor enthusiasts flock to the Mile-High City for the abundant sunshine. With close proximity to the Rockies, outdoor access to activities like hiking, skiing and mountain biking proliferate. Several major sports teams call Denver home including the Denver Broncos (NFL), Colorado Rockies (MLB), Denver Nuggets (NBA) and the Colorado Avalanche (NHL). Denver boasts a highly-educated and innovative workforce ranking #3 for tech worker concentration, according to the Denver Metro Chamber of Commerce. The market is home to the University of Colorado Denver, University of Denver, Regis University, Metropolitan State University of Denver and the Community College of Denver, providing a steady pipeline of highly skilled workers. Top employers, access to education and outdoor recreation opportunities make Denver a city with a desirable quality of life, an attractive choice for young adults in the 20- to 34-year-old cohort, a crucial component of the apartment market. That cohort accounts for approximately 23% of the metro’s population. Ap...

South and West Markets Lead Nation in Apartment Concessions

2025-12-29T16:10:38-06:00

Apartment operators leaned heavily on concessions in November, but some markets were more impacted by others. In November, 16% of stabilized apartments nationwide offered concessions, with average discounts climbing to 10.2% – the highest since September 2024, RealPage Market Analytics reports. Still, those topline U.S. metrics were skewed by performance in the South region, where 20.1% of properties offered concessions, followed by the West Coast at 15.3%. Usage in the high-supply South was nearly double that of its Northeast (11.6%) and Midwest (10.7%) peers. These findings were evident at the market level as well. Among the largest 10 apartment markets ranked by concession usage, six were in the South and the remaining four were in the West. All ten markets offered double-digit discounts in November, with Austin posting the highest concession rate among large markets nationwide.

Low Occupancy Rates in Texas Lead to Deep Rent Cuts

2026-03-04T06:53:03-06:00

While apartment demand across the five largest apartment markets in Texas has been sizable, elevated delivery volumes have weighed down occupancy. Low occupancy – landing the major Texas markets in the bottom 10 among the nation’s 50 largest apartment markets – has led to continued rent cuts. San Antonio recorded the nation’s weakest occupancy rate in November at 92.2%, followed by Austin at 92.4%. Fort Worth had the fifth-lowest rate nationally at 92.9%, while Dallas and Houston had the nation’s sixth-weakest reading, both at 93.1%. @include('site.elements.media.image', ['fileId' => 36058, 'attributes' => ['border' => '0', 'width' => '1280', 'height' => '746']]) While San Antonio had the nation’s weakest occupancy, the rate actually improved during the year-ending November, rising 20 basis points (bps). Fort Worth’s occupancy rate was also up for the year, climbing 50 bps. @include('site.elements.media.image', ['fileId' => 36059, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) The other three major Texas markets – Dallas, Fort Worth and Houston – recorded some of the nation’s steepest occupancy declines over the past year, with rates dropping 50 bps to 70 bps and landing among the nation’s bottom 10 performers for annual occupancy change. In an effort to preserve occupancy, operators in large Texas markets have resorted to rent cuts. In fact, all five of the major markets in Texas had some of the deepest rent cuts in the nation, landing among the bottom 15 performers, with Austin recording the nation’s steepest drop of 7.9%. @include('site.elements.media.image', ['fileId' => 36061, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) San Antonio recorded a rent cut of 5.2% during the year-ending November, the fourth-deepest reduction among the nation’s 50 largest markets. Meanwhile, Dallas posted a 3.3% price decline over the past year, the eighth steepest nationally, followed by Houston with the nation’s 12t...

U.S. Apartment Concessions Show Seasonal Trends in November

2025-12-29T16:11:04-06:00

With winter fast approaching, many apartment operators witness a seasonal slowdown in demand as holidays and colder temperatures slow moving activity. As a result, the use of concessions tend to be greatest during November and December as operators seek to capture renters from the reduced prospect pool. Those seasonal trends persisted throughout 2025. Nationwide, 16% of stabilized apartments offered concessions in November, according to data from RealPage Market Analytics. The average discount in November was 10.2%, the highest level since September 2024. By product class, concessions were greatest in Class A (10.8%) and Class C (10.3%) units, while Class B product posted a slightly smaller discount of 9.8%. Meanwhile concession prevalence was overwhelmingly greatest in Class C units in November, with 20.7% of units offering discounts. Use of concessions in Class A and Class B was comparatively milder, hovering around 14%.

Fall 2026 Pre-Lease Season Gets a Boost in November

2026-03-04T06:53:03-06:00

After recording the slowest October in over a decade, the Fall 2026 U.S. student housing pre-lease season got a boost in November. As of November, just 17.3% of student housing beds across the U.S. were leased for the Fall 2026 semester. That was a sizable boost over the October showing, which was the slowest start to a pre-lease season since 2015. While November’s boost was notable, taking it ahead of Fall 2025’s pre-lease rate for the month, it was still behind the showings above 20% seen in Fall 2024 and Fall 2023. It should be noted, however, that while Fall 2025 started out slowly, it did end up being the strongest season in recent history. A slow start doesn’t always mean a weak season, as evidenced by the strong showing in November. @include('site.elements.media.image', ['fileId' => 35989, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) The same performance was seen among the core 175 universities tracked and forecasted by RealPage, where 18.4% were leased as of November, quite a boost from the 3.3% leased in October. Rates were tightly clustered across distances from campus. Properties within a half mile to one mile of campus were 18.4% pre-leased as of November, while communities within a half mile of campus reported 17.2% pre-lease occupancy. Those units furthest from campus were 16.4% pre-leased as of November. For more information on the state of the student housing industry, read previous posts on Student Housing.

Rent Cuts Continue in the U.S. Apartment Market as Occupancy Falls Below 95%

2026-03-04T06:53:03-06:00

Rent cuts persisted across the U.S. apartment market in November, as occupancy fell below the essentially full mark. But rent cuts, at least, aren’t getting any more intense. After four consecutive months of mild decline, occupancy fell to 94.8% in November, according to data from RealPage Market Analytics. U.S. occupancy was 10 basis points (bps) below the October showing and has fallen 70 bps in the past four months. Year-over-year, occupancy was down 10 bps, marking the first annual decline the market has seen since August 2024. @include('site.elements.media.image', ['fileId' => 35975, 'attributes' => ['border' => '0', 'width' => '1280', 'height' => '1547']]) As occupancy faded, effective asking rents have also fallen for four consecutive months. U.S. prices fell 0.4% in November and were down 0.7% year-over-year. However, it should be noted that, after rent cuts intensified for three months straight, the annual decline in November matched last month’s pace, marking a slowdown to the progressive decline. Still, this was the second month of annual rent declines around that level – the nation’s deepest since March 2021. The nation’s South and West region markets continued to see the deepest rent cuts, while tech hubs are enjoying a bit of a rebound. Rent Cuts Continue in South and West Region Markets The surge in apartment supply volumes across the South over the past few years has inspired operators to take a more measured stance. In fact, the South has not recorded any annual rent growth since mid-2023. However, it should be noted that, after annual rent cuts intensified every month for the past seven months across the South, November rent cuts eased a bit. It wasn’t an extreme slowdown, but at least the bloodletting has been stemmed. The story is the same in the West: annual rent cuts continued in November, but at a reserved pace, marking an end to four months of progressively intensified annual cuts. Supply-heavy areas like Austin, Denver, Phoenix and Ch...

Denver Rent Cuts Remain Some of the Deepest Nationwide

2025-12-18T02:00:03-06:00

Denver apartment operators eased up slightly on rent cuts in November, but price declines in Mile-High City remain some of the deepest nationwide. Price declines pushed effective asking monthly rates in Denver behind the national level earlier this year for the first time in a decade, and rental rates have continued to come down since. Effective asking rental rates were cut 7.6% across Denver in the year-ending November 2025, according to data from RealPage Market Analytics. Among the nation’s largest 50 apartment markets, this was one of the most significant declines, besting only Austin, where rents were cut 7.9% annually. Recent annual rent declines in Denver have eased from the record cuts reaching 8.3% in the year-ending September 2025. November marked a second consecutive month of easing declines. Rent cuts appear to be inspired by falling occupancy, as Denver occupancy hit below 93% in November, the first time under that mark in at least 15 years.

RealPage Economy Express Episode 54

2025-12-05T14:43:23-06:00

Episode 54: After weeks of economic data blackouts, some delayed reports have released, giving us a better picture of inflation, jobs and housing. The Bureau of Economic Analysis’ latest Personal Income and Outlays report indicates Core Personal Consumption Expenditure Price index rose 0.2% in September and 2.8% year over year. That was slightly softer than expected. Personal income grew 0.4% in September, beating forecasts. Spending was light, rising 0.3%. The Producer Price Index rose 0.3% in September after a 0.1% dip the prior month and was up 2.7% year-over-year. Most of the monthly gain came from energy prices which jumped 3.5%, including an 11.8% spike in gasoline. The S&P CoreLogic Case-Shiller Index showed national home prices up 1.3% year-over-year in September, which was the weakest growth since mid-2023. Pending home sales rose 1.9% in October but remained 0.4% below a year earlier. MBA mortgage applications fell 1.4% last week. Refinances slipped 4% but remain 100%+ above last year. The average 30-year fixed mortgage rate eased to 6.32%. The ADP National Employment Report showed private employers cut 32,000 jobs in November. Small businesses lost 120,000 jobs. Pay growth slowed to 4.4% for job-stayers while job-changers saw growth of 6.3%. The Conference Board’s Consumer Confidence Index fell sharply to 88.7, with expectations dropping to 63.2. That was well below recession-signal territory. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

Class A Rents Continue to Rise, Despite Occupancy Trailing Class B and C Assets

2026-03-04T06:53:03-06:00

U.S. apartment market fundamentals have experienced some softness under continued pressure from elevated supply. But demand well above historical norms has helped to alleviate some of that strain. Despite large volumes of new supply, Class A product has held up remarkably well, with occupancy in line with pre-pandemic norms and continued rent growth. @include('site.elements.media.image', ['fileId' => 35918, 'attributes' => ['border' => '0', 'width' => '1280', 'height' => '432']]) Stabilized market-rate apartments across the U.S. have captured outsized demand, but as supply has remained at historically high levels, occupancy eased in recent months. On a year-over-year basis, occupancy was still up 10 bps, according to data from RealPage Market Analytics. Class A units recorded an annual occupancy gain of 20 basis points, while occupancy in Class C units was up 10 basis points and occupancy in Class B product was unchanged. Recent shifts took occupancy in Class B and C assets to 95% in October, rates slightly under the pre-pandemic average from 2015 to 2019 of 95.3% and 95.4%, respectively. Meanwhile, Class A units recorded an occupancy rate of 94.6% in October, in line with the pre-pandemic average (94.7%). @include('site.elements.media.image', ['fileId' => 35920, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Elevated supply has put downward pressure on rent growth. During the year-ending October 2025, effective asking rents across the nation fell 0.7%, the steepest annual decline in more than four years. Class C units pulled down the national average, as effective asking rents in that asset class dropped 3.2% in the year-ending October. That was the deepest annual rent cut for that product class in nearly 14 years. Class B rents were also down, falling 0.6% year-over-year, the deepest rent cut for that segment in more than four years. Despite the deluge of new supply, however, rents were up 1.4% on an annual basis in Class A product...

West Coast Rent Growth and Occupancy Ahead of National Norms

2025-12-16T02:00:03-06:00

The nation’s West Coast apartment markets in general saw better rent growth and occupancy performance than most other regions recently. The West Coast led the nation for rent growth in 3rd quarter, with prices climbing 0.2% during the July to September time frame. Annually, rents were up 0.6%, compared to an average rent cut of 0.1% on the national level. Inspiring rent growth, occupancy across West Coast markets averaged 95.8% in 3rd quarter, also ahead of the U.S. norm of 95.4%. In fact, only two West Coast markets – Fresno and Salinas – saw occupancy decline over the past year. Despite those setbacks, occupancy rates in those two markets remained above the 96% mark. While demand has been moderate in the West Coast region, inventory growth here has been pacing well behind the U.S. average. Looking ahead, apartments under construction in the U.S. are expected to grow the national existing base by 2.6%, while the West Coast is scheduled to add another 1.7% to inventory. For more information on the state of West Coast apartment markets, including forecasts, watch the webcast Market Intelligence: Q4 California/Pacific Northwest Update.

Multifamily REIT Outlook for 4th Quarter 2025

2025-12-10T02:00:03-06:00

An analysis of 3rd quarter earnings calls from the six largest multifamily REITs highlights how performance between July and September has influenced the outlook as the year draws to a close. Apartment Demand Solid but Mixed Demand remained largely resilient in major REIT markets nationwide, with many coastal markets benefiting from the AI boom and Sun Belt markets observing occupancy improvements alongside declining supply. Many REITs reported a pull-forward in demand during 2025’s 3rd quarter. Equity Residential’s CEO Mike Parrell noted, “earlier-than-usual seasonal leasing patterns,” with UDR Apartments also noting, “a little bit lower demand after Labor Day.” This slowdown in absorption in the latter part of 3rd quarter created a mixed view of quarterly demand performance, resulting in an overall slowdown in demand relative to recent quarters. Northern California was repeatedly spotlighted as a top performer, with Essex Property Trust CEO Angela Kleinman citing benefits from, “declining forward supply, strong demand from AI start-ups and positive migration trends.” However, high-tech West Coast peer Seattle exhibited “soft demand and temporary supply pockets.” Major gateway cities on the East Coast, New York in particular, continued to demonstrate resilience, supported by ongoing return-to-office momentum. Meanwhile, uncertainty surrounding government employment – such as layoffs and the recent lengthy shutdown – put pressure on performance in the D.C. market. Southern California (especially Los Angeles) and the Mid-Atlantic region also demonstrated relative softness, which AvalonBay’s COO Sean Breslin attributed to weaker job growth. Meanwhile, Camden Property Trust and MAA also reported healthy to “robust” 3rd quarter demand in their Sun Belt-focused portfolios, with Camden CEO Richard Campo noting 2025 as “one of the best years for apartment absorp...

Rent Cuts Hit Ann Arbor for Third Consecutive Month

2025-12-09T02:00:03-06:00

Ann Arbor rents contracted meaningfully for the third straight month in October. Rental rates in Ann Arbor fell 6.1% in the year-ending October 2025, according to data from RealPage Market Analytics. That decline was notably deeper than the cuts seen in the U.S overall (-0.8%) and in the Midwest region (-0.7%). Recent rent cuts in Ann Arbor were also below the market’s five-year average (-4.3%). In fact, these are some of the deepest price declines Ann Arbor has seen in the past 15 years. This small market with just 39,125 existing apartment units is home to the University of Michigan and has a strong technology presence. The most significant downshift in Ann Arbor’s performance hit Class C product with effective asking rents contracting 9.7% in the year-ending October 2025. Class B rents fell 5.2%, while Class A apartment operators reduced rents by a comparatively mild 1.2%. Increasing vacancies are tampering rental rates. Occupancy in Ann Arbor landed at 96.1% in October, down 10 basis points (bps) month-over-month and 30 bps year-over-year. In the past year, Class C occupancy shifted down 80 bps, while occupancy in Class A product decelerated 190 bps. Conversely, occupancy ticked up 30 bps in Class B product in the year-ending October.

U.S. Employers Added More Jobs Than Expected in September

2025-12-03T02:00:03-06:00

U.S. employers hired more workers than expected in September, after the labor market cooled down over the summer. U.S. employers added 119,000 jobs in September, according to a survey of businesses by the Bureau of Labor Statistics, data which was delayed due to the federal government shutdown. September job additions were up from the 4,000 jobs lost in August following a downward revision. The September jobs report was above economists’ expectations of a gain of roughly 50,000 jobs. The July estimate was revised down by 7,000 jobs, while the August figure was revised down by 26,000 jobs, going from a gain of 22,000 jobs to a loss of 4,000 jobs. That was the second monthly job loss since December 2020. With those revisions, employment in July and August combined came in 33,000 jobs below the previously reported figures. Five of the 11 major industries added jobs in September, with the largest increases in the Education/Health Services (+59,000 jobs) and Leisure/Hospitality Services (+47,000 jobs) sectors, followed by Government (+22,000 jobs), Construction (+19,000 jobs) and Financial Activities (+5,000 jobs). Notable job losses were seen in the Professional/Business Services (-20,000 jobs). Other major industries losing jobs during the month were Manufacturing (-6,000 jobs), Mining/Logging (-3,000 jobs), Other Services (-2,000 jobs) and Trade/Transportation/Utilities (-2,000 jobs), while the job count in the Information sector was unchanged. Meanwhile, the unemployment rate (U3 or headline unemployment rate, which is seasonally adjusted, and is a survey of households) edged higher to 4.4% in September, up from 4.3% in August and the highest reading in nearly four years. This post is part of a series analyzing employment data from the Bureau of Labor Statistics. For more on this data, read previous posts on Job Growth.

Texas Apartment Supply Volumes Set to Fade in 2026

2026-03-04T06:53:03-06:00

Texas apartment supply volumes have been elevated in recent years, and that competition has led to lower occupancy rates, especially among properties still working through lease-up. But Texas supply volumes are fading and are expected to continue their downward slope in the near term. Properties still in the lease-up phase aren’t included in the RealPage Market Analytics occupancy data. Instead, we focus on stabilized asset occupancy. These are properties that are past their initial lease-up phase, not undergoing renovations and consistently maintaining at least 85% occupancy for a fixed period. This approach ensures that the numbers aren’t skewed by properties that remain in the early stages of filling units. That said, it’s important to recognize the reality operators face today: lease-up pressures are substantial, especially in markets inundated by supply. And that’s exactly what the data highlights. Lease-up occupancy in many Texas markets is notably lower than the stabilized figures. This isn’t a sign of weak demand, but a reflection of the sheer volume of new supply hitting the market. @include('site.elements.media.image', ['fileId' => 35747, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) The gap between stabilized assets and those in initial lease up has been especially big in Austin and San Antonio. Occupancy in lease-up properties runs about 100 to 120 basis points lower than stabilized readings in Houston, Dallas, Fort Worth and Corpus Christi. On the other hand, some Texas markets have seen limited new supply pressure, and thus lease-up rates are running essentially in line with stabilized occupancy showings in Lubbock, College Station, Midland, El Paso and McAllen. Texas apartment supply volumes are scheduled to remain a hot topic for the next several months. But looking into deliveries set for 2026, completion tallies are slated to come down from the recent peak. In the first three quarters of 2026, quarterly supply vo...

Renewals Supporting Tight Occupancy in Northeast and Mid-Atlantic Markets

2025-11-26T02:00:04-06:00

The Northeast and Mid-Atlantic region continues to lead the nation in apartment occupancy rates, with markets showing limited availability and consistently high demand. This is not a new trend, as Northeast and Mid-Atlantic markets typically maintain an occupancy premium over the national average. Before the 2020s, occupancy in these markets averaged about 50 basis points (bps) ahead of the national norm. That premium closed a bit in recent years, a performance driven by exceptional lease retention. Renewal conversion, defined as the percentatge of expiring leases renewed, was at 61.6% in the Northeast and Mid-Atlantic region in 3rd quarter. That was very close to the all-time high of 62.3% from earlier this year and was also ahead of the national average by nearly 600 bps. For more information on the state of apartment markets in the Northeast and Mid-Atlantic, including forecasts, watch the webcast Market Intelligence: Q4 Northeast/Mid-Atlantic Update.

Austin Apartment Completions Set to Drop Dramatically in 2026

2026-03-04T06:53:03-06:00

The Austin apartment market has experienced explosive development recently, but the pace of expansion is dropping as construction activity wanes. As supply volumes fade to more historic norms, however, it’s important to remember how the intense volumes of recent deliveries have impacted market fundamentals. With nearly 345,300 existing units, the Austin apartment market is situated in Central Texas in the Texas Hill County and is bordered by the San Antonio market to the south. Austin features a picturesque landscape and distinctive culture, supported by a strong and diverse economy. In addition to being the state capital, Austin’s economy benefits from a diverse mix of industries and is home to three Fortune 500 companies – Tesla, Dell Technologies and Oracle. @include('site.elements.media.image', ['fileId' => 35684, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Austin has lured residents from all over the country with its thriving job market and affordable cost of living (especially compared to other tech hubs like San Francisco and New York). Austin’s culture is attractive to young renters, with a robust music scene, world-renowned festivals like Austin City Limits and South by Southwest and an array of outdoor lifestyle options. Additionally, the Austin market is home to two major public universities, The University of Texas at Austin and Texas State University. For all these reasons, Austin has attracted solid in-migration recently, triggering record apartment demand. And apartment developers responded by building more stock than the market has ever seen before. The Austin apartment market reached a peak in annual inventory growth in late 2024 and early 2025 when stock grew 10%, according to data from RealPage Market Analytics. That represented Austin’s largest delivery load since RealPage began tracking the market in 1995 and it was the fastest growth rate among the nation’s 50 largest apartment markets, far outpacing the next...

Fall 2026 Pre-Lease Season Starts Slowly

2026-03-04T06:53:03-06:00

The Fall 2026 U.S. student housing pre-lease season started out slowly, recording the slowest October in over a decade. As of October, just 3.3% of privately owned student housing beds across the U.S. were leased for the Fall 2026 semester. That was the slowest start to a pre-lease season since 2015. In the previous three pre-lease seasons, the lowest reading for October was in Fall 2025, with a showing of 7.2%. While Fall 2025 started out slowly, however, it did end up being the strongest season in recent history. Clearly a slow start doesn’t always mean a weak season, so there is still hope Fall 2026 can pick up some traction in the coming months. (The same performance was seen among the core 175 universities tracked by RealPage, where 3.3% were leased as of October.) @include('site.elements.media.image', ['fileId' => 35653, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) With pre-lease occupancy so tight, rates were tightly clustered across distances from campus. Properties within a half mile of campus tied with communities furthest from campus, with both reporting pre-lease occupancy of 3.4% in October. Those within a half mile to one mile of campus were 2.7% occupied. For more information on the state of the student housing industry, read previous posts on Student Housing.

Orlando Leads the Nation in Employment Growth

2025-11-25T02:00:04-06:00

Among the nation’s largest 50 apartment markets, Orlando led for employment growth in the past five years. Orlando’s job base swelled by 24.8% over the past five years, as of August data from the Bureau of Labor Statistics (due to the government shutdown, data has not yet come out for September or October 2025). This was the largest increase seen among the nation’s top 50 markets, though Austin and Las Vegas were not far behind, with growth between 23.1% and 23.6%. Other major Florida apartment markets with a top 10 showing were Miami (18.2%) and West Palm Beach (15.7%). The job sector in Orlando with the most growth in the past five years was the Leisure and Hospitality Services industry, which increased by 51.4%, partly due to the recovery of hospitality jobs after the COVID-19 pandemic. Other Orlando job sectors to see big increases in the past five years include Professional and Business Services and Education and Health Services.

Apartment Transactions Continue to Rise in 2025’s 3rd Quarter

2026-03-04T06:53:03-06:00

The dollar volume of U.S. apartment transactions continued to trend up during the July to September 2025 time frame, though the number of properties trading hands declined. On an annual basis, both the dollar volume and number of properties trading were up. Roughly 1,680 apartment properties changed hands at a value of $43.8 billion during 3rd quarter 2025, according to MSCI Real Capital Analytics. Overall sales volumes were up 13% year-over-year and were 21% above the 2nd quarter 2025 level when around 1,728 properties changed hands for roughly $36.2 billion. Still, recent activity was well below the $55.6 billion quarterly average over the past five years. @include('site.elements.media.image', ['fileId' => 35543, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '561']]) The average price per unit remained high at $227,167 in 3rd quarter, registering above $200,000 for 15 of the past 17 consecutive quarters. Prior to 2021, the per unit pricing never exceeded that threshold and averaged roughly $151,000 from 2015 to 2019. Meanwhile, cap rates for apartment transactions occurring in 3rd quarter 2025 averaged 5.63%, the highest cap rate in more than eight years and well above the pandemic-era low of 4.65% from 2nd quarter 2022. Though apartment cap rates have risen, they remain the lowest among major property types, keeping the asset class an attractive commercial real estate investment. @include('site.elements.media.image', ['fileId' => 35544, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) On an annual basis, transactions in the year-ending 3rd quarter 2025 totaled more than $159.9 billion with 6,717 properties trading hands. That total sales volume was up 23% from the previous 12-month period, while the number of properties sold was up 22%. Looking back over the past few years, sales dipped in calendar 2020 due to the pandemic, when about 7,300 apartment communities sold for $148.2 billion. That was well below the vol...

Apartment Markets Expecting the Largest Rent Increases in 2026

2025-11-06T13:37:22-06:00

Average effective asking rents for market-rate apartments in the U.S. are expected to return to growth in 2026. Rents are forecast to climb 2.3% across the nation next year, quite a change from the 0.7% contraction recorded in the year-ending October 2025, according to data from RealPage Market Analytics. Out of the nation’s 50 largest apartment markets, 11 are expecting effective asking rents to increase 3% or more in 2026. Miami is slated to lead the nation with annual rent growth of 3.8% next year. Seattle should see a rent hike of 3.7%, followed by a 3.5% increase in Fort Lauderdale and a 3.2% upturn in Los Angeles. Three markets – Cincinnati, Columbus and San Franciso – are expecting a 3.1% bump in rents, while four markets – Detroit, Kansas City, Philadelphia and West Palm Beach – are forecast to see a boost of 3% in effective asking rents in 2026. Of the 11 markets with the biggest rent increases next year, only San Francisco is expected to see annual rent growth cool, dropping from a nation-leading increase of 7.4% during the year-ending October 2025.

U.S. Apartment Prices Fall for Third Straight Month Amid Easing Occupancy

2026-03-04T06:53:03-06:00

The U.S. apartment market recorded a third consecutive month of annual rent cuts in October, signaling a persistent trend after several years of growth. Price declines across the U.S. were inspired by easing occupancy rates. U.S. apartment occupancy fell for a third consecutive month, dipping to 94.9% in October, according to data from RealPage Market Analytics. U.S. occupancy was 20 basis points (bps) below the September showing and down 60 bps in the past three months. However, year-over-year, occupancy was still up 10 bps. @include('site.elements.media.image', ['fileId' => 35534, 'attributes' => ['border' => '0', 'width' => '1280', 'height' => '1547']]) As occupancy faded, effective asking rent cuts intensified in the past few months. Prices fell 0.7% year-over-year across the U.S. as of October. This was the nation’s deepest annual rent cut since March 2021. Rent positioning was weighed down by South and West region markets recently, while tech hubs saw a rebound. Pricing Weakness Continues in South and West Region Markets Major South and West region markets continued to see some of the deepest rent cuts nationwide in the past year. The South has experienced significant supply growth over the past few years, prompting operators to adopt a more cautious approach. In fact, the South has not recorded any annual rent growth since mid-2023. Meanwhile, the West region also saw rent reductions intensify in October, further dragging on the overall national performance. Supply-heavy areas like Denver, Austin, Phoenix and Charlotte were some of the hardest-hit, with rent cuts persisting despite solid apartment demand. @include('site.elements.media.image', ['fileId' => 35535, 'attributes' => ['border' => '0', 'width' => '1280', 'height' => '813']]) Other markets that continued to see deep rent cuts were tourism-dependent markets such as Orlando and Nashville. Softness in markets that rely on tourism can be an early sign of economic weakness as consumers tighten d...

Rent Cuts Continue Across Las Vegas in September

2025-11-16T02:00:08-06:00

Las Vegas saw some of the nation’s deepest rent cuts in September. Las Vegas apartment operators cut rental rates by 4.1% in the year-ending September, according to data from RealPage Market Analytics. Those recent rent cuts were notably deeper than the annual price declines seen in the nation overall (-0.3%) in September and were some of the worst showings in the West region of the U.S. Only two other West region markets experienced deeper rent cuts, and those markets – Denver and Phoenix – have both seen large volumes of new supply deliver during the past few years. Las Vegas was once thought of as recession-proof, with a strong tourism market that seemed immune to economic downturns prior to the Great Recession in 2007-2009. The market did show decline during that recession, however, like much of the nation, with annual rent cuts getting as deep as 10% in 2010. During the COVID-19 recession of 2020, Las Vegas saw annual rent cuts fall as much as 4.6%.

Though Easing, Florida Apartment Supply is Expected to Remain Robust in 2026

2025-11-14T02:00:04-06:00

Florida has been an apartment development hotspot in recent years and that should continue into calendar 2026. Annual apartment supply volumes started to heat up in the years before the COVID-19 pandemic. Then, mass migration into the state during the work-from-home craze led to increased housing construction activity. In 2024, Florida saw a dramatic surge in apartment supply, as developers delivered nearly three times the number of units annually compared to the 2010s baseline. The Florida apartment market has cooled a bit on construction activity since then, but supply remains robust. By the end of calendar 2025, a little over 52,500 units are scheduled to wrap up construction. In 2026, supply volumes are scheduled to cool off a bit – to about 45,700 units for the calendar year. But those estimated completion numbers are still elevated in historical terms. For more information on the state of apartment markets across Florida, including forecasts, watch the webcast Market Intelligence: Q4 Florida Update.

San Francisco Apartment Market Leads the Nation for Rent Growth

2026-03-04T06:53:03-06:00

San Francisco is leading the nation for rent growth, trending in contrast to national price cuts. Effective asking rents increased 7.5% in San Francisco in the year-ending September, according to data from RealPage Market Analytics. This movement is in contrast to the national performance, and was well ahead of the market’s decade average. San Francisco saw a deep decline in rental rates along with the nation’s other gateway markets in 2020 and 2021, during the economic decline of the COVID-19 pandemic. Rents rebounded in 2022 to double-digit territory, which is not uncommon for San Francisco. In fact, the market saw a similar peak in annual rent growth back in 2011, when rates were near 14%. @include('site.elements.media.image', ['fileId' => 35417, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) San Francisco’s latest price increase was well ahead of the nation’s other big rent growth showings in the past year. Among the nation’s largest 150 apartment markets, the other top readings were in the smaller Champaign, Providence and Portland markets, which saw rent growth between 5% and 6% in the past year. Among the largest 50 apartment markets, New York and Chicago were the closest to San Francisco, with annual rent growth around 4%. Helping inspire solid rent growth in the past year, apartment occupancy in San Francisco has recovered from its pandemic setback and is up to nearly 97% as of September. This latest showing of 96.7% was well ahead of the U.S. rate of 95.1%. @include('site.elements.media.image', ['fileId' => 35418, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) While San Francisco’s September occupancy rate wasn’t a top 10 showing among the nation’s largest 150 apartment markets, it was a top three reading among the largest 50 markets. Among these major markets, only Newark and New York had tighter showings closer to 97% in September. Occupancy tightness in San Francisco is the result of demand p...

U.S. Apartment Demand Fell Notably Short of Supply in 3rd Quarter

2026-03-04T06:53:03-06:00

U.S. apartment demand slowed in 3rd quarter, coming in well behind concurrent supply volumes. A little over 42,430 market-rate units were absorbed in the July to September time frame. This performance was about half the decade average for the market and quite a slowdown from what the U.S. has seen in much of the past two years. This pullback seems to be driven largely by softening employment numbers, gloomy consumer sentiment and general uncertainty in the economy. Supply in 3rd quarter was also lower than what the market has seen in recent years, as the U.S. comes down from the delivery mountain that peaked in 2024. Still, at 105,525 units, supply for the quarter was still well ahead of concurrent demand. Demand landed nearly 63,100 units short of concurrent supply in 2025’s 3rd quarter, marking one of the nation’s deepest 3rd quarter disparities in the RealPage database going back to 1993. Only 3rd quarter 2022 saw demand fall further behind supply, and that was the result of the deep net move-outs during the quarter. @include('site.elements.media.image', ['fileId' => 35392, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Due to strong demand in the previous three quarters, nationwide absorption was still robust during the year-ending 3rd quarter 2025 at 637,079 units. And as supply continues to ease, demand disparity could rebalance in the near term. For more information on the state of the U.S. apartment market, including forecasts, watch the webcast Market Intelligence: Q4 U.S. Multifamily Update.

Seattle Apartment Demand Outpaces Easing Supply Volumes

2025-11-11T02:00:05-06:00

Annual demand surpassed completions in the Seattle apartment market for the fourth consecutive quarter, marking a reversal in trend from a year ago. Roughly 12,030 units were absorbed in the year-ending 3rd quarter 2025, while 10,177 units completed in the market, according to data from RealPage Market Analytics. Annual supply was down from roughly 11,500 units just a year ago as the supply wave in Seattle, like much of the country, crests. With demand overtaking supply, occupancy tightened 70 basis points (bps) year-over-year to 95.5%, about 30 bps above the five-year norm. With limited vacancies, rent performance moderated despite demand topping supply. Effective asking rents in Seattle ticked up a modest 1% year-over-year in 2025’s 3rd quarter, with performance impacted by cuts in the last three months of 2024. That small annual increase topped the U.S. norm but fell below the 2.9% average in Seattle over the last five years. Growth across Class A product where rents rose 3.7% over the last year, spurred performance. As supply slows and demand accelerates, rent growth is expected to trend above the national average in the near-term outlook. Meanwhile, job growth in Seattle continues to slow from the pre-pandemic era when employers added roughly 44,000 jobs per year from 2015 to 2019. RealPage forecasts employers will add just under 9,500 jobs over the next 12 months, expanding the job base less than 1%, a potential headwind that could impact housing demand.

Apartment Operators Cut Rents in San Antonio Amid Record Supply

2026-03-04T06:53:03-06:00

Apartment demand remains near record levels in San Antonio, spurred by all-time highs in apartment supply. But operators here know how to hold onto renters and have been cutting rents to keep up with hefty completion volumes. In the early 2020s, San Antonio saw a surge in multifamily construction, driven by strong population growth and pandemic-fueled migration favoring Sun Belt markets. Developers responded to strong demand enthusiastically, adding nearly 33,600 new units in the past five years, according to data from RealPage Market Analytics. Annual supply volumes hit an all-time high in early 2025, when 12,900 units were delivered. Demand in San Antonio topped that mark and continued to gain momentum and peaked at more than 14,870 units in 2nd quarter 2025. In 3rd quarter, both supply and demand volumes dropped from those recent peaks but remained robust compared to historical norms. @include('site.elements.media.image', ['fileId' => 35357, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) With such solid supply and demand performances, you’d expect occupancy to be in top shape in San Antonio. But occupancy here was at 92.5% in September, the lowest reading among the nation’s largest 50 apartment markets. Notably, neighboring Austin had the second-softest performance in September with occupancy at 93%. While September occupancy in San Antonio was above the market’s recent low point of 91% in 2024, it was well below the market’s peak near 97% in 2022. @include('site.elements.media.image', ['fileId' => 35358, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) San Antonio operators have kept rents low in an effort to hold onto occupancy recently. In fact, this was the nation's most affordable large apartment market, with monthly rents averaging $1,172 as of September. San Antonio was the only market nationwide to see prices under $1,200 as of September. Just five years ago, six other markets ranked below San An...

Columbus Sees the Most Demand in the Midwest in 3rd Quarter

2025-11-05T02:00:04-06:00

Columbus saw the most apartment demand in the Midwest in 3rd quarter. The market absorbed 2,088 units in the July to September time frame, according to data from RealPage Market Analytics. While that quarterly tally was well below the showings by demand leaders like Phoenix and Atlanta, it was the strongest in the Midwest region. The next Midwest market on the performance list was Kansas City, where only 654 units were absorbed in 3rd quarter. This was the second quarter of solid demand for Columbus, where nearly 4,400 units were absorbed in 2nd quarter. Those recent performances pushed the annual demand total to 9,610 units, the highest since RealPage began tracking Columbus in 1999, and well ahead of the record-high concurrent completion volume of about 7,900 units. Both apartment demand and deliveries in the year-ending 3rd quarter were concentrated in the Westerville/New Albany/Delaware and Downtown Columbus/University District submarkets. With the continued influx of demand, Columbus has been one of a few markets nationwide to sustain rent growth over the past five years.

How Generational Shifts Are Reshaping the Rental Market

2026-03-04T06:53:03-06:00

Over the past decade, young adults have increasingly delayed traditional life milestones, most notably moving out of their parent’s home and getting married. More recently, that trend has shifted, and is transforming the rental housing landscape. At the height of the pandemic in 2020, nearly 18% of Americans aged 25 to 34 were living with their parents, the highest rate in decades, according to the U.S. Census Bureau. But as cities reopened and job markets stabilized, young adults started to move out, forming new rental households and fueling demand across the U.S. In 2024, about 16% of that renter-age demographic lived with their parents. That’s still a high percentage compared to historical averages, but it’s come down notably from pandemic levels. @include('site.elements.media.image', ['fileId' => 35316, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) The recent outpouring of young renters into the rental market aligns with broader generational trends. Today’s renter is typically 31 years old, according to data from RealPage Market Analytics, while the National Association of Realtors reports the average first-time homebuyer is 38. That’s a seven-year gap that reflects how long households are staying in rental housing before transitioning to ownership. With more than 4.5 million Americans in each year of age from their late 20s through early 40s, the rental market is being shaped by a dense concentration of adults in prime earning and household formation years. These demographic shifts are driving demand for flexible, well-located housing options that support independence, mobility and evolving lifestyle preferences. Developers and operators who understand the timing and needs of these generational cohorts will be best positioned to meet the market where it’s headed. For more information on demographic and population trends cross the U.S., watch the webcast Market Intelligence: 2025 Demographic and Population Trends Update

Nine Major Markets Record Sustained Annual Rent Growth for Five Years

2025-10-21T10:12:04-05:00

Only nine of the nation’s 50 largest apartment markets have been able to sustain rent growth year-over-year every month for the past five years. More than half of those markets are in the Midwest. All nine of those large markets averaged annual rent growth of roughly 4% to 6% from October 2020 through September 2025, according to data from RealPage Market Analytics. Virginia Beach led with a 5.8% average annual increase during that period. The only other South region market to record sustained annual rent growth was Baltimore, with five-year average annual rent growth of 4.1%. Five Midwest markets continued to post year-over-year rent increases for five years, with the largest average annual increases in Cincinnati (5.7%), Columbus (5.2%) and Kansas City (5.1%). Philadelphia was the only market in the Northeast to make the list. For comparison, the U.S. overall averaged annual rent growth of 5.8% during that five-year period. Looking at fluctuations among those nine markets, Cleveland recorded the least variation in annual rent growth during that five-year period, with prices fluctuating just 92 basis points (bps), followed by Milwaukee (94 bps). That was much tighter than the rent change variation of 169 bps in the U.S. overall. Midwest markets are known for their stability and rank among the least volatile in the nation. A lot of that constancy has to do with limited supply. Most of the markets with sustained annual rent growth have seen expansion and vacancy rates well below the national average.

RealPage Economy Express Episode 53

2025-10-31T02:00:04-05:00

Episode 53: The ongoing federal government shutdown is disrupting the release of key economic data. Here’s what we do know: According to an ADP report, private employers cut 32,000 positions in September, the sharpest drop so far this year. Small businesses took the hardest hit, losing about 40,000 jobs. Unemployment edged up to 4.3% in August. Economists point to tariffs, tighter immigration rules and AI-driven restructuring as key reasons hiring has cooled. The Federal Reserve lowered interest rates by 0.25% in September, marking its first rate cut since December and signaling a shift toward a more accommodative monetary policy. In response to the rate cut, mortgage applications surged nearly 30% in mid-September, reflecting renewed consumer interest in home financing. But my mid-October they retrenched 1.8%. The average 30-year fixed mortgage rate dropped, providing a significant incentive for both new buyers and those looking to refinance. Consumer sentiment remains subdued, with the University of Michigan’s October showing of 55.0 essentially unchanged from September. Consumers remain concerned about weakening job prospects and inflation as the government shutdown continues. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

Build-to-Rent Construction Pipeline Slows

2026-03-04T06:53:03-06:00

Construction levels across build-to-rent (BTR) properties is slowing across the U.S. In general, housing construction has slowed. Single-family permitting is at its lowest level since 2023 and multifamily permitting and starts fell in August. BTR product has seen a similar slowdown, though construction remains robust for the moment. As of September, roughly 63,800 BTR units were under construction across the U.S. (including properties in lease-up where construction is ongoing). That was down a slight 0.7% from June construction levels. As RealPage defines it, BTR includes single-family housing that is fully detached, semi-detached (semi-attached, side-by-side), row houses, duplexes, quadruplexes and townhouses built for rental. While the nation’s construction pipeline of BTR units underway slipped, three of the nation’s four regions saw BTR construction climb. The South remains an ongoing BTR construction leader. Nearly 37,700 BTR units are underway across the South region with BTR units completing through 3rd quarter 2027, according to RealPage Market Analytics. That total tallies more than the other three regions combined and outpaces the next closest region (West) by more than two-to-one. That total also is a small increase (2.3%) above the 36,840 BTR units that were underway as of June. The West was the only region to see BTR construction decline. About 17,400 BTR units are under construction in the West region, down more than 10% from construction levels just a few months ago. Construction timelines on projects underway span through April 2028. @include('site.elements.media.image', ['fileId' => 35216, 'attributes' => ['border' => '0', 'width' => '1280', 'height' => '813']]) Another 8,700 BTR units are underway in BTR construction laggards, the Midwest (6,400 BTR units) and Northeast (2,200 BTR units) regions. Those areas have seen construction pick up 10% and 6%, respectively, over the past few months with construction on ongoing projects completing by e...

Augusta Logs the Most Revenue Growth in the Southeast

2025-10-27T02:00:03-05:00

The small Augusta apartment market recorded one of the nation’s largest revenue increases in September. At 5.2%, annual revenue growth in Augusta, which has about 34,100 existing units, ranked #4 among the nation’s 150 largest apartment markets and was the highest increase across the Southeast, according to data from RealPage Market Analytics. While the latest revenue growth performance in Augusta was ahead of the market’s five-year average (4.1%), it was down from the recent annual peak of more than 9% in April 2025. Apartment demand hit an all-time high in Augusta recently, helping occupancy climb to 95% as of September, up 190 basis points for the year. In addition, Augusta’s recent occupancy rate was well ahead of the market’s five-year average (94.4%) but still behind the peak rates above 97% the market hit in 2021 and 2022. Meanwhile, effective asking prices were up 3.3% year-over-year as of September. While solid, that figure was slightly behind the market’s five-year average annual increase of 4.4%.

Texas is Home to Most of Nation’s Fastest-Growing Cities

2026-03-04T06:53:03-06:00

Texas was home to some of the nation’s fastest growing cities over the past several years. The U.S. overall logged population growth of 2.6% from 2020 to 2024, according to the latest estimates from the U.S. Census Bureau. But some cities, primarily in Texas, logged significantly more growth. Among the 15 fastest-growing U.S. cities (with more than 20,000 residents as of 2024), 12 were in Texas. In fact, more than half were in the Dallas apartment market alone. @include('site.elements.media.image', ['fileId' => 35154, 'attributes' => ['border' => '0', 'width' => '1280', 'height' => '1188']]) Fulshear, a suburb west of Houston in the Rosenberg/Richmond submarket, was the fastest-growing city nationally and the only city in the Houston market to rank among the nation’s 15 fastest-growing cities from 2020 to 2024. Fulshear’s population grew from roughly 17,600 in 2020 to more than 54,600 residents in 2024, for a growth rate of 210.1%. @include('site.elements.media.image', ['fileId' => 35155, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Cities within the Dallas market took the next six positions among the fastest-growing cities, with Celina taking the lead and ranking #2 nationally. Celina, north of Dallas within the Frisco submarket, nearly tripled in size, growing from roughly 17,800 residents in 2020 to nearly 51,700 people in 2024. Prosper, also in the Frisco submarket, landed in the #15 position among the fastest-growing cities from 2020 to 2024, with its population increasing 44.4% to reach just over 44,500 residents in 2024. Three cities in Dallas’ Allen/McKinney submarket, which is due east of the Frisco submarket, ranked among the 15 fastest-growing cities nationally. Princeton was the third fastest-growing city nationally, with its population more than doubling, rising from nearly 17,600 people in 2020 to more than 37,000 residents in 2024. Melissa and Anna, ranking #5 and #6, respectively, saw their populations increase be...

Three Most Affordable Large Apartment Markets in September 2025

2025-10-24T02:00:03-05:00

Out of the nation’s 50 largest apartment markets, three had effective asking rents below $1,300 as of September 2025. All of them were in the South region. San Antonio was the nation’s most affordable large apartment market with rents of $1,172 in September, according to data from RealPage Market Analytics. In fact, similar rates were seen in much smaller markets like Corpus Christi, Fort Wayne and Tucson. Memphis rents were a bit higher at $1,239 in September, while Greensboro was priced at $1,254. Just five years ago, prices in San Antonio were ranking ahead of Memphis and Greensboro. But San Antonio was one of the slowest rent growth markets nationwide between September 2020 and September 2025, with prices growing just $155. That was a five-year growth rate of 15.2%, one of the softest among the nation’s large markets. San Antonio’s 10-year rent growth pace has also been one of the mildest nationwide, increasing by $296. In comparison, Memphis and Greensboro rents were up by roughly $300 each during the past five years and by about $500 each in the last decade.

3rd Quarter Forecast Impacted by FOMC's Recent Rate Cut and Economic Insecurity

2025-10-23T02:00:04-05:00

The political uncertainty that dominated the first three quarters of the year culminated on the last day of 3rd quarter with a long-feared outcome: a government shutdown. A prolonged shutdown could significantly impact the broader economy moving forward. However, 2nd quarter delivered a surprisingly strong upside, with the U.S. economy growing at an annualized rate of 3.8%, the fastest pace since 3rd quarter 2023. Growth was driven by a sharp drop in imports and steady consumer spending. Despite strong economic growth in 2nd quarter and a positive outlook, the labor market failed to keep pace in 3rd quarter. Employers faced headwinds from tariffs and political uncertainty, which slowed hiring. In July and August (excluding September due to the government shutdown) the economy added just 101,000 jobs, well below last year’s pace. This continues the trend of weaker employment growth seen earlier in the year, with gains nearly 50% lower than the first half of last year. Over the past four quarters, job creation has totaled less than 1.5 million, significantly underperforming compared to the prior year. Concerns about tariffs have so far translated into only a modest impact on inflation through 3rd quarter. The Fed’s preferred gauge, the Personal Consumption Expenditures Price Index (PCE), posted small monthly increases since June. Year-over-year, PCE grew 2.7% as of August, which was slightly above last year’s level and about 50 basis points higher than the April low. While inflation remains above the Fed’s 2% target, signs of labor market weakness prompted the Federal Open Market Committee (FOMC) to cut the Fed Funds Rate by 25 basis points to a range of 4% to 4.25%, with guidance suggesting at least one more cut before year-end. These developments have shaped our latest forecasts. Nationally, we expect effective asking rent growth of less than 2% during the year-ending 3rd quarter 2026. Among the top 50 markets, roughly 18% are projected t...

Nearly Three Times More Apartments Absorbed Than Started This Year

2025-10-21T02:00:04-05:00

The U.S. apartment market is absorbing nearly three times more units than developers are getting off the ground right now, though that ratio is on its way down. Nearly 234,900 new market-rate apartments started construction across the U.S. in the year-ending 3rd quarter 2025, according to RealPage Market Analytics. That was the smallest starts volume the nation has seen in over a decade. In fact, the volume of annual starts has fallen off nearly every quarter since peaking at roughly 587,000 units in the year-ending 3rd quarter 2022. As starts volumes descend, the U.S. continues to absorb apartments at a much faster pace than projects can get off the ground. Though apartment absorption also slowed recently, the market notched demand for a still-notable 637,100 units in the year-ending 3rd quarter 2025. That means that there were 2.7 times more units rented than started in the last year. This ratio represents a softening after peaking at 3.1 in 2nd quarter 2025.

Quarterly Supply Volumes Still Hitting Records

2026-03-04T06:53:03-06:00

The U.S. apartment market hit a 10th consecutive quarter of record completion volumes in 3rd quarter 2025. While new supply volumes have cooled considerably after peaking in 2024, quarterly delivery numbers keep hitting records. Roughly 105,525 units wrapped up construction in 3rd quarter, marking a 10th consecutive quarter of deliveries beyond the 100,000-unit mark. @include('site.elements.media.image', ['fileId' => 35057, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Quarterly completion volumes broke past 100,000 units in 2nd quarter 2023 for the first time since RealPage Market Analytics began tracking the U.S. apartment market in the 1990s. Delivery totals then increased for five straight quarters, peaking in 3rd quarter 2024 before ebbing slightly in the last three months of 2024. The drop in quarterly deliveries in 2025 has been notably steep, though volumes have yet to fall below that 100,000-unit mark. Apartment deliveries remain elevated across all U.S. regions, though all are down from recent peaks. @include('site.elements.media.image', ['fileId' => 35058, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) New apartment deliveries continued to be most prolific in the South region of the U.S., where about 53,410 units wrapped up in 3rd quarter 2025. However, the South has also seen the steepest pullback in delivery volumes recently. Completions in the South peaked at over 92,100 units in 3rd quarter 2024 and volumes have fallen off every quarter since. The West region saw nearly 26,900 units deliver in 3rd quarter 2025, which was about 2,000 units more than came online in the region in 2nd quarter 2025. This region also peaked in 3rd quarter 2024, and recent totals are well behind that mark (37,400 units). Milder delivery volumes were seen in the Northeast (13,100 units) and Midwest (12,100 units) during 3rd quarter 2025. Notably, the Midwest was the only region where 3rd quarter supply hit below t...

Apartment Demand Slows, Leading to Uncommon 3rd Quarter Rent Cuts

2026-03-04T06:53:03-06:00

The U.S. apartment market saw demand slow in 3rd quarter, ending the streak of rapid growth seen during much of the past two years. Roughly 637,100 market-rate units were absorbed in the year-ending 3rd quarter 2025. While still nearly double the volume of units absorbed annually on average during the past decade, this latest showing marked a turn in trend. The market's recent performance was down notably from the nearly 784,900 units absorbed in the year-ending 2nd quarter 2025, an historic peak the market reached after nine quarters of sustained growth. “Sluggish new lease activity appears to be the primary driver behind a weaker-than-expected 3rd quarter,” RealPage Chief Economist Carl Whitaker said. “This sluggishness looks to be a reflection of broader macroeconomic headwinds as the nation has seen job growth quickly slow in the past few months.” @include('site.elements.media.image', ['fileId' => 34994, 'attributes' => ['border' => '0', 'width' => '1280', 'height' => '1547']]) Meanwhile, apartment supply volumes continue to slow rapidly. Over 474,800 units wrapped up construction across the U.S. in the past year, including about 105,500 units in 3rd quarter alone. This marks a third consecutive quarter of decline after annual supply volumes peaked at 586,151 units in 4th quarter 2024. Still, like demand, the latest round of apartment deliveries is still ahead of decade norms. Occupancy backtracked quarter-over-quarter as well, falling 30 basis points (bps) to land at 95.4% in 3rd quarter 2025. It’s common to see occupancy backtrack in 3rd quarter, but this decline also marks a new trend after five straight quarters of occupancy increases. 3rd Quarter Rent Cuts for the First Time in Over a Decade Softening fundamentals in the U.S. apartment market resulted in effective asking rents falling 0.3% in 3rd quarter. This was the first time rents have been cut between July and September since 2009, at the end of the Great Financial Crisis. In the year-ending 3rd...

Sun Belt Markets – and Salt Lake City – Dominate 2026 Job Growth Leaderboard

2025-10-17T02:00:03-05:00

Among the nation’s 50 largest apartment markets, 27 are expected to see job growth above the U.S. average of 0.4% in 2026. Of those 27 markets, 20 are in the Sun Belt. Salt Lake City was the only major market outside the Sun Belt with forecasted employment growth greater than 0.7%, with an expected increase of 1.1%, according to data from RealPage Market Analytics. Austin is expected to record the fastest job growth in the nation among major markets. In addition to Austin’s forecasted employment expansion of 1.6% in calendar 2026, several other Sun Belt markets are also set to post solid job gains. Dallas and Orlando are expected to see employment grow by 1.2%, while Raleigh/Durham is set to match Salt Lake City’s forecasted job growth of 1.1%. Charlotte and Fort Worth should both see job growth of 1% in calendar 2026. On the other hand, the weakest job change performances among the nation’s 50 largest markets are expected in Baltimore, Detroit, Pittsburgh and Washington, DC, which are all forecasted to see essentially no change in their respective job counts in the coming year.

The Slowest Pre-Lease Season Became the Strongest

2026-03-04T06:53:03-06:00

The latest U.S. student housing pre-lease season started out slowly, but gained notable traction and ended August in the best shape the market has seen in at least a decade. As of August, a notable 96.5% of student housing beds across the U.S. were leased for the Fall 2025 semester. In the last four pre-lease seasons, only Fall 2022 came close with an August showing of 95%. (Among the core 175 universities tracked by RealPage, even more – 96.7% - were leased in August.) @include('site.elements.media.image', ['fileId' => 34876, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) What stands out about Fall 2025 even more is the way it started out. Back in November, only 16.1% of student housing beds were leased for the season, and only 25.6% were leased by December. But clearly a slow start doesn’t always mean a weak season. Demand accelerated quickly and by April, pre-leasing had surged to nearly 70%, catching up with historical norms. With pre-lease occupancy so tight, rates were tightly clustered across distances from campus. Properties within a half mile of campus reported the tightest pre-lease occupancy as of August at 96.7%. Those within a half mile to one mile of campus were 96.6% occupied. Properties furthest from campus logged a rate of 96.5%, matching the U.S. average. Still, that rate was historically strong. @include('site.elements.media.image', ['fileId' => 34877, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) For more information on the state of the student housing industry, including forecasts, watch the webcast Market Intelligence: Fall 2025 Student Housing Update

Some Affordable Apartment Markets Make Notable Occupancy Progress

2025-10-09T02:00:04-05:00

While all major apartment markets nationwide made at least a little occupancy progress in the past year, a handful have seen especially notable upturns. Most of these markets with sizable occupancy increases were located in the South or Midwest regions of the U.S., with two exceptions (Pittsburgh and Phoenix). All were relatively affordable markets with monthly rents below the national average. Among the nation’s largest 50 apartment markets, Memphis was the national leader for occupancy progress, with growth of 260 basis points (bps) in the year-ending August, according to data from RealPage Market Analytics. Rents in Memphis were some of the most affordable nationwide at $1,242 as of August. The annual occupancy upturn in St. Louis was similar at 240 bps, while Atlanta and Greensboro also saw upturns in excess of 200 bps. The 190-bps upturn in Cincinnati took occupancy to 96.5% as of August, which was one of the strongest rates among the nation’s largest markets. In contrast, the 190-bps upturn in San Antonio wasn’t enough to make up for previous declines, taking occupancy to just 92.9%, the weakest rate among large markets. San Antonio also had the lowest monthly effective asking rents among large markets, with August prices of $1,192.

Columbus Ranks Among the Nation’s Top Permitting Metros

2026-03-04T06:53:03-06:00

Despite ranking only 32nd nationally in metro population and 30th for inventory among RealPage’s top 150 apartment markets, Columbus, OH has remained in the 9th or 10th spot among the top 10 multifamily permitting markets for the past four months. Columbus is the state capital and most populous city in the state, as well as home to The Ohio State University, the state’s flagship school. The region's resilient and diverse economy is supported by a broad mix of industries, including government, education, finance, manufacturing and health care. Job growth has been fairly robust, averaging 1.2% for the past year compared to a U.S. average of 0.8%. That has translated into strong housing demand, with total housing permits averaging about 16,000 units in the past few months. Much of that has been for multifamily units, which overtook single-family permitting in mid-2022 and accounted for 60% of Columbus’ total units permitted in August Columbus ranked #9 on RealPage’s August top 10 permitting list with 9,548 units, up 36% or 2,529 units from one year ago. That is the largest total for multifamily permitting in Colombus’ history. However, in year-over-year unit change, the market was fourth among the top 10 after Dallas, Orlando and Miami. @include('site.elements.media.image', ['fileId' => 34804, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '643']]) All of last month’s top 10 permitting markets returned to August’s list with the first three in order. New York continues to lead the nation for multifamily permitting but has slowed more than 15% from last year (-4,405 units). Dallas and Houston again ranked after New York but increased permitting by about 2,000 to 5,000 units each. Orlando jumped from #7 last month to #4 in August with a robust 49% increase in units permitted from last year. Phoenix and Austin saw annual permitting slip about one-third but remained among the top permitting markets, as did Atlanta, which slowed by 17% at the #8 spot...

San Jose’s Eight-Month Rent Growth Streak Comes to an End

2025-09-26T02:00:10-05:00

In August, the rent growth streak in San Jose’s apartment market ended, with effective asking rents ticking down 0.1% month-over-month. Rents in San Jose had picked up in each of the previous eight months, with no other large market recording consistent pricing gains during that period. Combined with prior monthly increases, rents in San Jose rose 3.4% in the year-ending August, according to data from RealPage Market Analytics. That gain was quite different from the national average decline of 0.2% and tied with Pittsburgh as the third-largest increase among nation’s 50 largest markets. However, San Jose is prone to big shifts in rents. In fact, San Jose has witnessed some of the most volatile rent change performances among the nation’s 50 largest markets. During the 10 calendar years leading up to the pandemic (2010-2019), annual rent change in San Jose ranged from decline of 2.2% to a hike of 12.2%.

Jobs Disappearing in Many Tech Hubs

2026-03-04T06:53:02-06:00

Several of the nation’s tech hubs have seen job gains slow sharply or have turned to job losses due to a combination of various factors, including the tech industry correcting for pandemic-era over-hiring, general economic uncertainty and the transformative effects of AI. This has led to declining employment and a talent exodus in some hubs, while other cities continue to see tech sector growth. According to the latest release from the Bureau of Labor Statistics, annual job losses continued in the Bay Area (13,600 jobs lost in San Francisco-Oakland-San Jose), while Denver’s job change turned negative in August (3,800 jobs lost). Deep declines in year-over-year employment gains occurred in Atlanta, Dallas, Austin, Seattle and Raleigh/Durham (positive but weaker growth). Compared to last year, these tech hubs created about 100,000 fewer jobs in their respective economies. However, other tech markets like Boston and Salt Lake City saw job gains increase from last August. Those markets combined for an addition of 26,300 more overall jobs than the year before. Of particular note during this employment slowdown are Dallas, Seattle and Austin. All three were among the top 10 markets for job creation as recently as January, but in August, Dallas ranked #26, Seattle was #28 and Austin ranked behind Honolulu at #30, just ahead of Myrtle Beach. Among RealPage’s top 10 job creation markets for the year-ending August, New York continued its dominance with a gain of 113,400 jobs. Philadelphia ranked #2 for the fourth straight month and Phoenix moved up to #3 from #7 in July. @include('site.elements.media.image', ['fileId' => 34785, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '642']]) Charlotte, Los Angeles, Houston, Chicago and San Antonio returned among the top job creation markets, while Pittsburgh and Salt Lake City replaced Orlando and Detroit to round out the top 10 for August. Together, the top 10 markets added 389,400 jobs in the year-ending Au...

Sizable Supply Volumes in Desert/Mountains Region

2025-10-07T02:00:04-05:00

The Desert/Mountains region accounted for nearly 14% of apartment deliveries across the U.S. in the past year, with the addition of nearly 78,000 units. That was the second-biggest completion volume nationwide, just behind Texas, where over 100,000 units delivered, about 18% of the national total. Florida also saw big numbers, with around 70,000 units completed in the past year, while the Midwest was close with about 67,000 units wrapped up. Inventory growth in the Desert/Mountains region was also sizable in the year-ending 2nd quarter, with a 4.5% increase. That measure ranked the region second nationwide, coming in just behind the 4.9% growth pace in the Carolinas. Growth was at 3.8% in both Texas and Florida. For more information on the state of small apartment markets across the Desert/Mountains region, including forecasts, watch the webcast Market Intelligence: Q3 Desert/Mountains Update.

RealPage Economy Express Episode 52

2025-10-03T02:00:04-05:00

Episode 52: The Federal Reserve’s modest rate cut signals a shift toward easing policy amid mixed economic signals. The Federal Reserve cut interest rates by 0.25%, the first decline since December. Mortgage applications surged nearly 30% in mid-September and refinance activity jumped 58% as 30-year fixed rates fell to 6.4%. The Consumer Price Index (CPI) rose 0.4% in August, pushing annual inflation to 2.9%. The Producer Price Index (PPI) dipped 0.1% in August after a 0.7% July gain. Annual PPI held at 2.6%. Construction and operating costs remain high despite slight easing in supply-chain pressures. Consumer sentiment fell to 55.4 in September, the lowest since May and down over 20% year-over-year. The Conference Board Leading Economic Index declined 0.5% in August and 2.8% over six months, weighed down by weak manufacturing and rising jobless claims. Housing permits fell 3.7% in August and 11% year-over-year. Policymakers are split on future interest rate cuts, but the easing cycle has begun. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

New Housing Construction Continues to Slow

2026-03-04T06:53:02-06:00

Despite an ongoing and widespread need for more housing, construction of new homes has slowed further. Single-family permitting has fallen to its lowest level since 2023, when 30-year mortgage rates were reaching their most recent peak at more than 7.6%. Although rates are still somewhat elevated compared to the very low rates of the 2010s and into the early-2020s, they are averaging close to the levels seen in the early-2000s prior to the Great Financial Crisis. The seasonally adjusted annual rate for single-family permitting dipped to 856,000 units in August, down 2.2% from July and 11.5% from last year. That is the fourth consecutive month below 900,000 units and 18th month below the one-million-unit mark. Single-family starts likewise are slowing, with the seasonally adjusted annual rate (SAAR) at 890,000 units in August, down 7% for the month and 11.7% from last August. That’s only the 2nd time annual single-family starts fell below 900,000 homes since April 2023. @include('site.elements.media.image', ['fileId' => 34734, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Meanwhile, the multifamily market is chugging ahead, with annualized permitting averaging about 440,000 units since 2015 (outside of the 2021-2023 bulge in the cycle). The August SAAR for multifamily permitting of 403,000 units was 6.7% less than July’s rate and 10.8% lower than last year’s. The SAAR for multifamily starts was down 11% from last month to match permitting at 403,000 units. However, that annualized rate was 15.8% greater than last August. Together with the small two-to-four-unit plex product, total residential permitting was down 3.7% for the month and 11.1% for the year to 1.312 million units. The annual rate for total residential starts fell 6% from last August to 1.307 million units, and with this month’s decrease in single-family starts, August’s SAAR was down 8.5% for the month. Single-family completions were up 5.6% from last August and 6.7% fo...

Multifamily Starts Plummet in West Coast Markets

2025-09-30T02:00:09-05:00

Multifamily starts have declined sharply across the West Coast’s major apartment markets in recent years. Just 20,000 market-rate units started in the year-ending 2nd quarter across the West Coast, which was the lowest number the region has seen since 2011. In big West Coast markets like Los Angeles, Seatle, San Diego, Orange County and San Jose, starts sit at their lowest point since 2011. In Portland, fewer units started in the past year than the market has seen since 2010. Starts activity was the most prominent in Los Angeles, with about 4,200 starts in the year-ending 2nd quarter. Seattle saw less than 4,000 units kick off in the past year. San Diego rounded out the top three along the West Coast, with starts of a little more than 2,000 units in the past four quarters. For more information on the state of West Coast apartment markets, including forecasts, watch the webcast Market Intelligence: Q3 California/Pacific Northwest Update.

Virginia Beach Outperforms Other South Region Apartment Markets

2026-03-04T06:53:02-06:00

The Virginia Beach apartment market has outshined in recent years, ranking as the only South region market among the nation’s top 10 for both occupancy and rent change. Virginia Beach was the only major South region market to rank among the national leaders for occupancy in August. Occupancy was at 96.8% in Virginia Beach in August, according to data from RealPage Market Analytics. Among the largest 50 U.S. apartment markets, Virginia Beach tied with San Francisco in the #3 spot, just behind Newark and New York. Occupancy in Virginia Beach was well ahead of the next-best South region market on the top 50 list, which was Washington, DC, with a rate of 95.8%. @include('site.elements.media.image', ['fileId' => 34677, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Solid apartment demand and limited supply in Virginia Beach has helped push occupancy ahead by 320 basis points (bps) in the past 10 years. During that same period, the South region of the U.S. saw occupancy drop 20 bps, while the nation overall saw an increase of 10 bps. With occupancy ranking well nationally and pushing forward notably, rent growth in Virginia Beach has also been solid. Effective asking prices were up 2.2% in the year-ending August, ranking the market #9 for rent growth among the nation’s largest 50 apartment markets. The next-best South region market – Baltimore – came in at #18 on that list, with rent growth of 1%. In contrast, rent cuts were the norm during the past year in the U.S. overall (-0.2%) and the South region (-1.7%). @include('site.elements.media.image', ['fileId' => 34678, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Helping apartment fundamentals in Virginia Beach, new deliveries have been limited in recent years, especially compared to some other South region markets. The existing inventory base in Virginia Beach increased by just 5.4% over the past five years, less than half the growth rate for the U.S. overall (...

Northeast and Mid-Atlantic Markets Set to See New Supply Linger Longer

2025-09-26T02:00:10-05:00

There are limited vacancy rates among the Northeast and Mid-Atlantic apartment markets, and part of the reason occupancy is so tight has been restricted new supply volumes. While there are pockets of notable supply to be found in a handful of spots across the region, overall deliveries have been modest in recent years, especially in comparison to the completions across the Sun Belt. New apartment supply volumes in the Northeast and Mid-Atlantic have yet to peak this cycle, unlike the Sun Belt which saw a late 2024 peak. Looking forward, the Northeast and Mid-Atlantic markets might see consistent supply hold out, with volumes not dropping to the same degree as the Sun Belt markets. In the year-ending 2nd quarter 2025, roughly 102,240 units completed across the Northeast and Mid-Atlantic region (not including New York). While that volume is expected to drop in the near term, annual deliveries are scheduled to hover around the 80,000 to 90,000-unit mark throughout much of the next few years. For more information on the state of Northeast and Mid-Atlantic apartment markets, including forecasts, watch the webcast Market Intelligence: Q3 Northeast/Mid-Atlantic Region Update.

Multifamily REITs in 2025: What Investors and Property Managers Need to Know

2025-09-25T02:00:07-05:00

As 2nd quarter 2025 earnings wrap up, many of the nation’s top multifamily REITs – Equity Residential (EQR), AvalonBay Communities (AVB), Camden Property Trust (CPT), Mid-America Apartment Communities (MAA) and Essex Property Trust (ESS) – are revealing more than just numbers. They’re offering a window into how institutional operators are navigating a complex landscape shaped by interest rate uncertainty, shifting renter demographics, and evolving tech adoption. The general tone in the latest round of earnings calls suggests cautious optimism, with most REITs preparing for near-term pricing to likely remain somewhat muted in higher supply regions, while continued economic uncertainty remains a more widespread headwind to performance. Performance is Steady but Strategic Despite macroeconomic headwinds, multifamily REITs posted solid results. Occupancy rates held firm, with EQR reporting 96.6% and CPT at 95.6%. Same-store NOI growth year-over-year ranged widely, from nearly 3% (UDR) to roughly -2.5% (MAA). Blended lease trade out rates generally saw modest increases, particularly in lower supply coastal and Midwestern metros. But the real story lies in how these REITs are positioning themselves for the next cycle. Most REITs are taking a cautious approach to capital deployment. EQR acquired 2,064 apartment units in suburban Atlanta in its ongoing efforts to expand its portfolio into high growth Sun Belt markets outside of its larger suburban coastal footprint. Meanwhile UDR emphasized portfolio optimization over expansion, with CEO Toomey pointing out “ongoing capital deployment into development, redevelopment, and preferred equity investments, all underpinned by an “investment-grade balance sheet with substantial liquidity.” This also points to a broader trend: many REITs are doubling down on geographic concentration, favoring high-growth, business-friendly m...

Cost of Food and Housing Contributes to Inflation Upturn in August

2025-09-24T02:00:09-05:00

The price of goods and services paid by U.S. consumers rose in August, a month when President Trump raised tariffs on goods from many U.S. trading partners. Overall price increases were largely due the cost of housing and food products. The U.S. inflation rate rose 2.9% in the year-ending August, according to the Consumer Price Index (CPI) for All Urban Consumers measured by the Bureau of Labor Statistics. That was up from the 2.7% annual inflation rate the previous month and it was the fastest pace since January. The Fed’s current target rate for inflation is 2%. Keeping the overall inflation rate elevated were the costs for food and shelter, which rose 3.2% and 3.6%, respectively, during the year-ending August. The rise in the cost of food was the highest since October 2023, while the rise in the cost of shelter was the lowest increase in nearly four years. It should be noted that the shelter index has a well-documented lag effect. Excluding the cost of food and shelter, consumer prices were up 2.3% year-over-year in August, up from the annual rate of 2% in July. Other notable increases were seen in the cost of used cars and trucks, which rose 6% in the year-ending August and airline fares, which were up 3.3% year-over-year.

Big Apartment Markets with the Most Concessions in August

2026-03-04T06:53:02-06:00

As new supply floods the U.S. apartment market, rental concessions have become a strategic device for property owners trying to attract and retain renters. Some apartment markets are offering more generous discounts than others, and some of the major Texas markets – also dominant supply contenders – are paramount on this list. Across the U.S., just over 14% of apartments were offering concessions in August 2025, according to data from RealPage Market Analytics. The average discount nationwide as of August was 9.7%. @include('site.elements.media.image', ['fileId' => 34565, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Among the nation’s 50 largest apartment markets, Austin led the way for concessions in August. Austin not only had the highest share of units offering concessions across the U.S. (30.5%) but also the nation’s highest average concession rate (12.9%), suggesting deep discounts to lure renters amid extreme supply volumes in recent years. And – at least for the moment – the strategy is working, as Austin demand has also been solid. @include('site.elements.media.image', ['fileId' => 34566, 'attributes' => ['border' => '0', 'width' => '1280', 'height' => '931']]) In fact, four of the top 10 major apartment markets offering the biggest concessions in August were in Texas. This reflects both high levels of new construction and competitive lease-up strategies. Just an hour down IH-35 from Austin, San Antonio is also offering big concessions, with 29.9% of its stock resorting to discounts. Also on trend, demand in San Antonio has likewise been significant. Other Texas apartment markets offering big rental concessions include the northern duo of Fort Worth and Dallas, with about 22% to 23% of the Metroplex stock offering discounts. Other Sun Belt markets like Jacksonville, Phoenix and Las Vegas are seeing elevated concessions, likely due to cooling demand after pandemic-era migration spikes.

RealPage Economy Express Episode 51

2025-09-08T08:43:53-05:00

Episode 51: Are interest rate cuts on the horizon? The August jobs report showed significant weakness, with only 22,000 new positions added to payrolls. The unemployment rate rose to 4.3% in August. Average hourly earnings increased 0.3% monthly and 3.7% annually. Construction spending in July was $2.14 trillion, in line with June but down 2.8% year-over-year. Residential construction declined, while public construction helped stabilize overall spending. S&P Case-Shiller indices showed slowing home price growth. Pending home sales fell 0.4% in July but remained 0.7% higher than a year ago. Mortgage applications dropped 1.2% in late August. GDP growth in 2nd quarter was revised upward to 3.3%, driven by AI-related business investment and steady consumer spending. Consumer confidence declined to 97.4 in August, down from 98.7 in July. Federal Reserve Chair Powell suggested an interest rate cut could be on the horizon. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

U.S. Jobs Report Below Expectations for August

2025-09-18T02:00:04-05:00

The U.S. labor market has cooled significantly as employers added jobs at a slower pace amid uncertainty about the economy. U.S. employers added just 22,000 jobs in August, according to a survey of businesses by the Bureau of Labor Statistics. Those additions were down from the 79,000 jobs added in July and were well below economists’ expectations of roughly 75,000 jobs. The July figure was revised up by 6,000 jobs, while the June estimate was revised down by 27,000 jobs, going from a gain of 14,000 to a loss of 13,000. That was the first job loss since December 2020. With those revisions, employment in June and July combined came in 21,000 jobs below the previously reported figures. Only four of the 11 major industries added jobs in August, with the largest increase in the Education/Health Services sector (+46,000 jobs). That was followed by Leisure/Hospitality Services (+28,000 jobs) and Other Services (+12,000 jobs), while the Trade/Transportation/Utilities saw a small gain (+2,000 jobs). Notable job losses were seen in the Professional/Business Services (-17,000 jobs), Government (-16,000 jobs) and Manufacturing (-12,000 jobs) sectors. Other major industries to lose jobs during the month were Construction (-7,000 jobs), Mining/Logging (-6,000 jobs), Information (-5,000 jobs) and Financial Activities (-3,000 jobs). Meanwhile, the unemployment rate (U3 or headline unemployment rate, which is seasonally adjusted, and is a survey of households) registered at 4.3% in August. That was up from 4.2% in July and the highest reading in 46 months. This post is part of a series analyzing employment data from the Bureau of Labor Statistics. For more on this data, read previous posts on Job Growth.

10 U.S. Apartment Markets Set to See Deliveries Increase Next Year

2026-03-04T06:53:02-06:00

With apartment supply volumes dropping across the U.S., only a handful of major markets are expected to see an increase in delivery volumes in the coming year. The U.S. overall is scheduled to see a 33.9% decline in apartment completions in the next 12 months, according to data from RealPage Market Analytics. This represents the return of a more normal supply environment, as developers cool off after completing notably elevated volumes in the past few years. @include('site.elements.media.image', ['fileId' => 34499, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Most apartment markets nationwide are set to follow this trend, with declining supply volumes on the horizon. In fact, out of the nation’s 50 largest apartment markets, only 10 are scheduled to see deliveries increase in the next year. The biggest increase in apartment supply in the coming year is set for Los Angeles. A little over 8,000 units competed here in the year-ending 2nd quarter 2025, and deliveries are scheduled to nearly double in the coming year to over 15,500 units. Construction delays are common in Los Angeles, meaning those numbers could change, but as they are now, this market is expected to see new deliveries hit peak volumes in mid-2026. @include('site.elements.media.image', ['fileId' => 34500, 'attributes' => ['border' => '0', 'width' => '1280', 'height' => '931']]) Two other California markets are among the few scheduled to see deliveries increase in the coming year: San Diego and Anaheim. Supply volumes in these markets have been limited recently, but are expected to increase by more than 70% in each over the next 12 months. Two Midwest markets – Detroit and Cincinnati – are slated to see apartment completion volumes increase in the coming year. Detroit is scheduled to see the nation’s second-biggest increase in the next 12 months, after only Los Angeles. Nearly 1,800 units delivered in Motor City in the year-ending 2nd quarter 2025, but over 3,100 are ex...

U.S. Apartment Market Softens in August

2026-03-04T06:53:02-06:00

After showing resiliency in recent years, the U.S. apartment market saw the return of mild annual rent cuts in August as occupancy softened. U.S. apartment occupancy eased a bit to 95.4% in August, according to data from RealPage Market Analytics. That was down 10 basis points (bps) from the July showing but still matched the market’s five-year average. Year-over-year, occupancy was up 130 bps. @include('site.elements.media.image', ['fileId' => 34455, 'attributes' => ['border' => '0', 'width' => '1280', 'height' => '1547']]) As a result of fading occupancy, effective asking rents were down in the year-ending August, for the first time since the COVID-19 recession. Prices fell 0.2% year-over-year across the U.S. Annual price increases have been negligible for a while now, but this is the first tine annual rent cuts have emerged since March 2021. The South and West regions were responsible for much of the decline in the nation’s rents in August. Price declines are nothing new for the South region, as this part of the country has seen extreme supply volumes in recent years, leading to caution among operators. In fact, the South hasn’t seen annual rent growth since mid-2023. The West region also saw annual rent cuts deepen in August, pulling the national performance down. South and West Region Markets See Weakness All the major markets that saw rent cuts during the past year were in the South and West region of the U.S. Some of these were markets that depend on tourism, such as Orlando and Las Vegas. Softness in tourism-dependent markets can be an early sign of economic weakness as consumers tighten discretionary spending on travel. @include('site.elements.media.image', ['fileId' => 34456, 'attributes' => ['border' => '0', 'width' => '1280', 'height' => '813']]) Other markets that continue to see deep rent cuts are supply-heavy areas like Austin, Denver, Phoenix, Dallas and Charlotte. Markets with the Most Rent Growth On the other hand, tech-heavy coastal mar...

Small Apartment Markets with Big Rent Increases

2025-09-16T02:00:04-05:00

Some of the nation’s 100 secondary markets – those with about 25,000 to 110,000 existing units – are continuing to log significant rent increases. Of those smaller markets, 11 recorded increases in effective asking rents of greater than 3.5% in the year-ending August 2025, according to data from RealPage Market Analytics. Seven were in the Northeast region and three were in the Midwest, while the West region had one market and the South had none. At the top of the leaderboard were two Northeast markets led by Harrisburg with 5.8% annual rent growth, followed by Syracuse at 5.7%. Champaign and Providence each recorded year-over-year price increases of 5%. The lone West region market on the list, Salinas, posted annual rent growth of 4.9%. Coming in slightly above 4% were Portland (4.3%) and Flint (4.2%), while Albany recorded an annual rent increase of 4%. Year-over-year rent growth was at 3.7% in Lansing and 3.6% in Allentown and Rochester. Among the 50 largest markets nationwide, only two logged annual rent increases of more than 3.5%, with San Francisco leading the nation at 7.1% and Chicago ranking #7 nationally at 4.5%. For comparison, the U.S. overall averaged a slight decline of 0.1% in effective asking rents during the year-ending August.

Carolinas Home to Top Job Growth Markets in Recent Years

2025-09-10T02:00:04-05:00

Among the top 10 markets leading the nation for employment growth in recent years, four were in the Carolinas. Myrtle Beach was the U.S. leader for job growth since the onset of the pandemic, with an employment base that increased by 25.1% between February 2020 (the last month of normalcy before the pandemic decline began) and July 2025, according to the latest data from the Bureau of Labor Statistics. (If we examined a standard five-year growth point, job increases nationwide would be artificially inflated, given that July 2020 was an abnormally low point in the U.S. economy.) Charleston has seen its employment base swell by 17.7% since right before the pandemic, while Wilmington and Raleigh/Durham have enjoyed upturns of about 14% to 15%. Outside of the Carolinas, the other markets making the top job gain list were more spread across the country. Austin and Boise were the #2 and #3 performers, with job gains around 19% since the pandemic. Employment increases were closer to 16% in Huntsville and Fayetteville and a bit lower at around 13% to 14% in Provo and Lakeland.

Does Dallas’ Multifamily Permitting Signal the Next Supply Wave?

2026-03-04T06:53:02-06:00

Although multifamily permitting was down nationally in July, several markets are still ramping up housing production. Six of this month’s top 10 markets for multifamily permitting increased their annual total of units permitted compared to last year. Five of those were greater by more than 2,300 units each. The top 10 market with the largest increase in multifamily permitting in units from last year was Dallas, up 4,566 units from last July to 17,684 units permitted. Despite slowing employment growth, Dallas has seen its annual permitting increase each month from a low of about 12,600 units in November 2024. Dallas has led the nation for apartment completions since mid-2024 and has perennially been a top market for new construction throughout the years. As the current wave of completions slows, it appears Dallas is on its way to a resurgence as the next supply cycle may be on the rise. Granted, the Census Bureau’s 5+ multifamily permitting totals include more than market rate, conventional apartments, but the trend is apparent. @include('site.elements.media.image', ['fileId' => 34356, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '643']]) Orlando and Houston were also up significantly from last year and permitting activity is up by about 33% in Columbus, OH and Newark. All of last month’s top 10 permitting markets returned to July’s list with the first three in order. Despite leading the nation, New York saw a significant decrease in annual permitting, as did Phoenix and Austin. Atlanta and Miami had modest changes in annual multifamily permitting but remain among the top 10 as well. The sum of permitted units for July’s top 10 of 134,050 units is virtually the same as one year ago and up 1.5% from June’s sum. In addition to Dallas, Orlando, Houston, Newark and Columbus, markets with significant year-over-year increases in multifamily permitting include Chicago (+2,489 units), Detroit (+1,940 units), Bridgeport-Stamford-Danbury, CT (+1,90...

Low Volatility Characteristic of Midwest Apartment Markets

2025-09-08T02:00:03-05:00

Midwest region apartment markets tend to be the nation’s most stable. When looking at calendar-year effective asking rent change from 2010 to 2019 among the nation’s 50 largest apartment markets, Midwest markets rank among the least volatile. San Francisco has been the nation’s most volatile market, with annual rent change ranging from cuts of 3% to hikes of 15% in the past cycle. Other markets with big shifts in rents in that time frame include West region markets San Jose, Oakland, Las Vegas and Sacramento. On the other side of the performance spectrum, the nation’s markets with the lowest volatility in the cycle were Midwest markets Cincinnati, Indianapolis, Kansas City, St. Louis and Cleveland. A lot of this constancy has to do with limited supply and generally stable demand. With the two in relative balance, rent positioning in the Midwest tends to fluctuate less. For more information on the state of Midwest apartment markets, including forecasts, watch the webcast Market Intelligence: 2025 Q3 Midwest Region Update.

Dallas Falls from Top Job Gain List

2026-03-04T06:53:02-06:00

For only the second time since the end of the pandemic recession, the metro division of Dallas-Plano-Irving did not place among the top 10 markets for job creation in July 2025. With 22,200 jobs gained for the year, Dallas ranked #12 after Salt Lake City and just ahead of Miami on RealPage’s list of top markets for job gains. Excluding pandemic-related job losses, that is the lowest annual job gain figure for Dallas since August 2010, when the nation was coming out of the Great Recession. Adding in Fort Worth, D/FW would place #4 on the top 10 list after Houston. Only two of Dallas’ 10 major employment sectors experienced job losses for the year. The primary cause of these recent employment decline has been workforce reductions within the Manufacturing and Professional/Business Services sectors, reflecting a broader trend observed at the national level. Prominent employers in the Dallas area such as IBM, FedEx, Allied Aviation Fueling and TT Electronics have either implemented layoffs or paused hiring in response to uncertain economic conditions. Over the 12 months ending in July, the Dallas metro area experienced a net loss of approximately 3,700 manufacturing jobs and 8,200 positions within professional services. The most affected subsectors included Computer Systems Design and Related Services, as well as Administrative and Support Services. Additionally, job growth has moderated across the Construction, Financial Activities and Other Services sectors. However, despite weakening employment growth nationally, many of RealPage’s top markets continue to see solid job growth. Seven of June’s top job creation markets returned in July. New York once again led all major markets for employment gains in the year-ending July 2025 with 129,800 new jobs, an increase of more than 30,000 jobs from June’s annual total. Philadelphia and Houston also had very strong gains with 65,300 and 62,600 jobs created, respectively. Houston actually doubled annual gains from last month...

Apartment Transactions Tick Back Up in 2025’s 2nd Quarter

2026-03-04T06:53:02-06:00

U.S. apartment transactions ticked back up during the April to June 2025 time frame. However, on a year-over-year basis, the total dollar volume of apartment sales were down. There were some notable sales during 2nd quarter, with five apartment communities trading for $175 million or more. @include('site.elements.media.image', ['fileId' => 34304, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '561']]) Roughly 1,580 apartment properties changed hands at a value of nearly $35.1 billion during 2nd quarter 2025, according to MSCI Real Capital Analytics. Overall sales volumes were down 14% year-over-year but were 11% above the 1st quarter 2025 level when around 1,410 properties changed hands for roughly $31.5 billion. Still, recent activity was well below the $54.7 billion quarterly average over the past five years. The average price per unit remained high at $213,629 in 2nd quarter, registering above $200,000 for 14 of the past 16 consecutive quarters. Prior to 2021, the per unit pricing never exceeded that threshold and averaged roughly $151,000 from 2015 to 2019. Meanwhile, cap rates for apartment transactions occurring in 2nd quarter 2025 averaged 5.41%, the lowest cap rate since 3rd quarter 2023 but well above the pandemic-era low of 4.67% from 2nd quarter 2022. Apartment cap rates remain the lowest among major property types, keeping the asset class an attractive commercial real estate investment. @include('site.elements.media.image', ['fileId' => 34303, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) On an annual basis, transactions in the year-ending 2nd quarter 2025 totaled nearly $154.1 billion with 6,445 properties trading hands. That total sales volume was up 24% from the previous 12-month period, while the number of properties sold was up 21%. Looking back over the past few years, sales dipped in calendar 2020 due to the pandemic, when about 7,300 apartment communities were sold for $148.2 billion. That was w...

New York Apartment Occupancy Holds Strong

2025-08-28T02:00:04-05:00

Occupancy is incredibly strong in New York’s conventional apartment stock, boosted by some of the nation’s best absorption volumes. Apartment occupancy in New York was at 97.1% in July, according to data from RealPage Market Analytics. That was one of the best showings among the nation’s 50 largest apartment markets, bested only by the rate in neighboring Newark (97.2%). Occupancy has held relatively steady in New York recently, up only 20 basis points (bps) year-over-year. While the U.S. overall saw quite a bit more occupancy progress in the past year (140 bps), that momentum took the July reading to 95.5%, quite a bit behind the New York showing. New York also ranked among the nation’s leaders for apartment absorption, logging demand for over 32,800 units during the year-ending 2nd quarter 2025. Only Dallas and Atlanta saw more absorption during that period.

Residential Starts Momentum is Shifting

2026-03-04T06:53:02-06:00

Annualized starts for single-family and multifamily units were both up for the month and year but are trending differently. The seasonally adjusted annual rate (SAAR) for multifamily starts increased 11.6% between June and July to 470,000 units, up 27.4% from last July’s unusually low SAAR. Meanwhile, the annual rate for single-family starts increased 2.8% for the month and 7.8% for the year to 939,000 units. However, the annual rate for single-family starts has averaged about 940,000 units for the past five months compared to an average of about one million homes from January 2024 to February 2025. During those same 14 months, annualized multifamily starts averaged 338,000 units versus an average of more than 400,000 units for the past five months. July’s SAAR of 470,000 units is the highest since December 2023. @include('site.elements.media.image', ['fileId' => 34285, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) While multifamily starts appear to be trending up, the forward looking building permit data shows a flatter trend with July’s SAAR down 9.9% from June to 430,000 units, and a mild decrease of 1.8% from last year. July’s jump in multifamily starts reflects June’s permitting rate of 477,000 units. Single-family permitting has trended downward since the beginning of the year when the annual rate nearly reached one million units but has since fallen to 870,000 units, virtually unchanged from last month and down almost 8% from last July. Mortgage rates have not changed significantly since 2022, but economic uncertainty and tariff-related pricing concerns have hampered the industry. Together with the small two-to-four-unit plex product, total residential permitting was down 5.7% for the year and 2.8% from June to 1.354 million units. The annual rate for total residential starts jumped 12.9% from last July to 1.428 million units, and with this month’s increase in multifamily starts, July’s SAAR was up 5.2% for the month. The SA...

Will Class A Rent Growth Continue to Trend Ahead of B and C Stock?

2025-09-02T02:00:03-05:00

Coming out of the Great Financial Crisis period, effective asking rents in Class A apartments grew faster than Class B rents for about four years (technically spanning 1st quarter 2000 to 4th quarter 2013). But Class B rental rates grew faster for the following seven years, all the way up until mid-year 2021. As of 2nd quarter 2025, Class A rental rates were up 2.3% year-over-year, while Class B stock grew 0.8% (less than the U.S. average). Class C stock continues to see rent cuts of 1.1%, according to data from RealPage Market Analytics. Today, there are some differences versus the previous cycle (grossly understated perhaps), but if we're looking at three-plus years out on the horizon, likely diminishing treasury yields coupled with stabilizing Class B fundamentals means asset class performance could start to resemble the mid-2010s decade at some point. Perhaps another way to frame it: Class A's positioning relative to Class B today is indicative of where we're at in the real estate cycle. Though admittedly, Class A properties gained momentum earlier in the supply cycle this time around due to outside factors (one of which can be chalked up to the frozen single-family market).

Seven Markets with Deep Supply Drops in the Next Year

2026-03-04T06:53:02-06:00

As supply volumes drop across the U.S., some individual apartment markets are logging pronounced declines. In the U.S. overall, just over 354,000 units were under construction at the end of 2nd quarter and scheduled for completion in the coming year. That is a 33.9% decline from the roughly 535,800 units completed in the year-ending 2nd quarter 2025, according to data from RealPage Market Analytics. @include('site.elements.media.image', ['fileId' => 34160, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Next year’s scheduled supply in the U.S. marks a return to a more normal supply environment. In the past decade, supply volumes averaged roughly 360,000 units annually, elevated notably by the record volumes from the past few years. Across the nation, most big and small apartment markets alike are set to see declining supply volumes in the coming 12 months. Among the nation’s 50 largest apartment markets, seven are scheduled to see delivery volumes fall by roughly twice the national pace – about 60% or more – in the coming year. @include('site.elements.media.image', ['fileId' => 34161, 'attributes' => ['border' => '0', 'width' => '1280', 'height' => '931']]) The sharpest decline in apartment supply in the coming year is set for San Jose. New apartment completions in San Jose hit a record pace of 5,122 units delivered in the year-ending 2nd quarter 2025. At the end of the quarter, there were 2,008 units under construction in San Jose, with 1,151 of those units scheduled to complete in the coming year. That’s a 77.5% decline from last year’s pace and hits well behind the market’s decade average of 3,092 units delivered annually. The only other West region market on this list is Denver, which was one of the nation’s biggest centers for apartment deliveries in the year-ending 2nd quarter 2025 with the completion of 17,462 units. Just over 6,600 units are slated to wrap up construction in the next 12 months in Denver, which represents a de...

Cincinnati Ranks Among Nation’s Leaders for Rent Growth

2025-08-21T02:00:03-05:00

Cincinnati ranked among the nation’s top five large apartment markets for annual rent growth in July. The market logged a price increase of 3% in the year-ending July, according to data from RealPage Market Analytics. Among the nation’s 50 largest apartment markets, that was a top five performance, tying with San Jose and ranking alongside gateway markets like San Francisco, Chicago and New York. Pittsburgh, which is about the same size as Cincinnati, also ranked among the nation’s top five annual rent growth leaders in July. Cincinnati rent growth has come down from recent highs in 2022, when annual price hikes topped out at a sizable 12.6% in August. After rent growth came down across the nation, Cincinnati held on to a stronger performance than many of its Midwest peers. A 3% increase in the past year, however, is a bit behind the market’s decade average of 4.4%.

Rent Cuts Continue Across Most Florida Apartment Markets Amid Sustained Supply

2026-03-04T06:53:02-06:00

Most Florida apartment markets are logging deep rent cuts, prompted by the continued battering of apartment supply volumes in recent years. Effective asking rents came down by about 2% to 8% in the year-ending 2nd quarter 2025 across most Florida markets. The deepest declines were in Naples and Cape Coral, where effective asking rents declined by 7.5% and 6.6%, respectively. In those small Florida markets, the impact of supply pressure combined with normalizing migration trends has put downward pressure on rents in recent years. @include('site.elements.media.image', ['fileId' => 34140, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Annual rent cuts were around 4% to 5% in Crestview and North Port. Two large Florida markets – Jacksonville and Orlando – saw prices come down by around 2.5% in the year-ending 2nd quarter. Cuts were more modest at less than 2% in Lakeland, Deltona, West Palm Beach, Fort Lauderdale, Palm Bay and Pensacola. While some Florida markets did see a bit of rent growth in the past year, the increases in Tampa, Gainesville and Miami were below the national average (0.8%). The only Florida markets with annual rent growth ahead of the U.S. norm as of 2nd quarter were Tallahassee (2.7%) and Port St. Lucie (4.1%). It's no surprise that elevated supply volumes are holding back rent growth in Florida in recent years. Only three Florida markets – Tallahassee, Gainesville and West Palm Beach – saw inventory growth trail the national average in the year-ending 2nd quarter. @include('site.elements.media.image', ['fileId' => 34141, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) For the most part, the Florida markets with the deepest rent cuts are also the ones seeing the biggest inventory increases. New supply volumes in Cape Coral, North Port, Lakeland and Jacksonville are clearly a big force behind the state’s slowdown in rent positioning. In the case of Jacksonville, Deltona, Palm Bay, Crestvi...

Big Markets with Record High Apartment Demand

2025-08-15T02:00:03-05:00

Out of the nation’s 50 largest apartment markets, 15 hit all-time demand records in the year-ending 2nd quarter 2025. In each of these markets, record absorption paced notably ahead of concurrent completion volumes, which were also elevated – in some cases significantly – from historical norms. And the majority of these were in the South region of the country. The demand peak in Dallas was the biggest, with over 42,200 units absorbed in the past year, according to data from RealPage Market Analytics. That was more than double the market’s average annual demand pace over the past 10 years. Atlanta, Phoenix and Charlotte absorbed between 22,000 and 33,000 units in the year-ending 2nd quarter. Demand in those markets was roughly three times the decade norm. A handful of markets absorbed roughly 15,000 to 16,000 units in the past year, including Philadelphia, Raleigh/Durham, Tampa and San Antonio. Those were all also performing at about three times the typical pace for demand. Peak volumes were below the 10,000-unit mark in the remaining seven markets. Among those, Riverside and Memphis logged demand at roughly four to five times their typical pace.

U.S. Apartment Construction Activity at a Decade Low

2026-03-04T06:53:02-06:00

U.S. apartment construction activity is at its lowest point in nearly a decade. Just over two years ago, apartment construction volumes were at a record high, peaking at over 1.1 million units underway at the end of 1st quarter 2023. Following that apex, building volumes have come down every quarter, as properties wrapped up construction and permitting waned. At the end of 2nd quarter 2025, just over 542,800 units were under construction across the U.S., according to data from RealPage Market Analytics. That was the smallest apartment construction figure the nation has seen since 3rd quarter 2015. Just in the past year, nationwide apartment construction activity fell by nearly 320,000 units. That was a 37% decrease from 2nd quarter 2024’s volume. Of the stock underway at the end of 2nd quarter 2025, roughly 354,000 units are scheduled to complete in the coming year. @include('site.elements.media.image', ['fileId' => 34003, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Not surprisingly, Austin is the apartment market that has seen the deepest drop off in construction activity in the past year. Roughly 18,000 units were under construction in Austin at the end of 2nd quarter, which was less than half the volume of units underway just one year ago. Other markets to see volumes come down notably in the past year include Phoenix, Atlanta, Dallas and New York. In those markets, construction activity came down by about 14,000 to 17,000 units year-over-year. @include('site.elements.media.image', ['fileId' => 34004, 'attributes' => ['border' => '0', 'width' => '1280', 'height' => '931']]) On a relative basis, there were a handful of markets that have seen construction drop by more than 60% over the past year. Those were mostly West Coast markets like San Jose, Oakland and Portland, but Midwest market Indianapolis was also included in that list. Denver came close to that cutoff, with construction falling 58% year-over-year. At the end of...

The Frisco Submarket Sees Record High Apartment Demand and Supply

2025-08-21T02:00:03-05:00

Annual demand in Frisco - a northern suburban submarket of Dallas - reached a record high of 4,992 units in 2nd quarter, a rate that was nearly double the submarket’s 10-year average. At the same time, Frisco saw record deliveries of 4,936 units in the year-ending 2nd quarter, with this stock growing existing inventory by 13.6%. But completions in Frisco are rapidly slowing. Deliveries in the coming year (2,225 units) are scheduled to drop by more than half the current level. Meanwhile, higher new (12.6 months) and renewal (11.9 months) lease terms could help prevent “back door” renter loss. Effective rents have declined on an annual basis since mid-2023, with the decline in the year-ending 2nd quarter at 3.2%. Class B (-2.8%) and C (-6.6%) units lagged performance relative to Class A assets (1.3%). In the coming year, the Dallas market will continue to see most of its new product built in the northern suburban crescent of Allen/McKinney, Denton and Frisco. The close proximity of these submarkets to each other could present increased competition for renters. Over the next 12 months, demand in Frisco is forecasted to slow alongside new supply, with occupancy ticking down and rent cuts persisting.

U.S. Apartment Supply Falls as Demand Ramps Up

2026-03-04T06:53:02-06:00

Apartment supply numbers have peaked in the U.S. apartment market, and the volume of new deliveries is steadily falling at the same time that demand is mounting. Developers wrapped up construction on nearly 536,000 units across the U.S. in the year-ending 2nd quarter. While that annual completion volume easily stands above the nation’s long-term average, it comes in below the all-time high recorded two quarters ago. In fact, 2nd quarter 2025 marks the first time annual inventory growth has fallen quarter-over-quarter by more than 20 basis points in at least 15 years. Most of the apartment market’s big annual supply number is due to huge quarterly volumes in the back half of 2024. @include('site.elements.media.image', ['fileId' => 33894, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) At the same time that supply is on the decline, apartment demand is gaining steam. The U.S. absorbed over 794,000 units in the year-ending 2nd quarter. That was a record for the nation and well above the average of about 358,000 units absorbed annually over the past five years. This marks a third consecutive quarter of excess annual demand in the U.S., meaning total annual absorption outpaced concurrent deliveries, resulting in a demand surplus. @include('site.elements.media.image', ['fileId' => 33892, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Looking back, the apartment market was logging a supply surplus throughout much of 2022 through 2024. The nation’s largest apartment markets with the most demand surplus in the year-ending 2nd quarter include Houston, Chicago, Los Angeles and Atlanta. In the case of Atlanta, that surplus came at a time when the market logged one of the nation’s biggest supply volumes concurrently. For more information on the state of apartment markets across the U.S., including forecasts, watch the webcast Market Intelligence: Q3 U.S. Multifamily Update.

Resiliency Continues Across the U.S. Apartment Market

2026-03-04T06:53:02-06:00

The U.S. apartment market saw occupancy and rent growth continue to hold steady in July, motivated by falling supply and mounting demand. For the second consecutive month, U.S. apartment occupancy registered at 95.5%, according to July data from RealPage Market Analytics. That was down just a shade from the peak of 95.6% from April and May, and just a shade above the market’s five-year average of 95.4%. Year-over-year, occupancy was up 140 basis points (bps). @include('site.elements.media.image', ['fileId' => 34104, 'attributes' => ['border' => '0', 'width' => '1280', 'height' => '1547']]) Effective asking rents were up 0.2% year-over-year across the U.S. While any rent growth at all after the historic supply wave the country just came through is impressive, this was the market’s lowest annual price increase in 10 months. Thus, operators continue to preserve occupancy at the expense of pushing prices. Aiding in the ability to preserve occupancy, apartment demand keeps hitting new highs. The nation recorded record absorption of over 794,000 units in the year-ending 2nd quarter, topping the peaks from 2021 and 2022. While supply volumes remain robust in historic terms, they are declining rapidly. Over 535,000 units were completed across the U.S. in the year-ending 2nd quarter. While that volume easily stands above the nation’s long-term average, it came in below the all-time high recorded just two quarters ago. Ongoing construction volumes have come down every quarter since peaking in early 2023 and, as of 2nd quarter, hit a decade low. At the same time, multifamily permitting has waned. Moving forward, this could help firm up occupancy and inspire the return of rent growth. The Northeast and Midwest remain the nation’s occupancy leaders, with rates of 96.8% and 96.4%, respectively. The West region is holding tight at 95.5% alongside the nation overall, while the South – where supply volumes have been the most extreme – has the most vacancies, with occupancy at...

Southeast Apartment Demand Reaches its Highest Level in Decades

2025-08-12T02:00:09-05:00

Peak demand is reshaping the landscape across Southeast apartment markets. Annual absorption topped 60,000 units in the Southeast in the year-ending 2nd quarter. That was the region’s strongest apartment demand reading in decades. The Southeast has been enjoying an outsized performance relative to other regions, inspired by solid in-migration, resilient job growth and affordability advantages. Robust demand in the Southeast is quite the turnaround after the noticeable drop off in 2022 and 2023. After that breif decline, the absorption landscape started to change by early 2024 and by mid-2025 momentum took off meaningfully. Thus, what started as a recovery period after a small downturn eventually grew into sustained and aggressive expansion. For more information on the state of Southeast apartment markets, including forecasts, watch the webcast Market Intelligence: Q3 Southeast Region Update.

U.S. Labor Market Weaker Than Previously Reported

2025-08-15T02:00:03-05:00

Previous estimates of job growth in the U.S. were grossly overestimated. The U.S. labor market added just 19,000 jobs in May and 14,000 jobs in June, with those gains revised down by a larger than normal revision, a combined 258,000 jobs. In July, employers added 73,000 workers to payrolls, according to a survey of businesses by the Bureau of Labor Statistics. While those additions were up from the previous two months, that gain came in below economists’ expectations of roughly 100,000 to 115,000 jobs. Gains from May through July amounted to just 106,000 jobs, the weakest performance during that three-month period since the Great Recession. In July, job gains were most pronounced in the Education/Health Services sector (+79,000 jobs), followed by Financial Activities (+15,000 jobs) and Trade/Transportation/Utilities (+11,000 jobs). Other major industries to add jobs during the month were Leisure/Hospitality Services (+5,000 jobs), Construction (+2,000 jobs) and Other Services (+2,000 jobs). Notable job losses were seen in Professional/Business Services (-14,000 jobs) and Manufacturing (-11,000 jobs). Job losses were also seen in the Government sector (-10,000 jobs), with the bulk of that net loss attributed to continued declines in Federal Government positions (-12,000 jobs). Meanwhile, the unemployment rate (U3 or headline unemployment rate, which is seasonally adjusted, and is a survey of households) has registered in the narrow range of 4% to 4.2% over the past 15 months and came in at 4.2% in July. That was up from 4.1% in June and matched expectations. This post is part of a series analyzing employment data from the Bureau of Labor Statistics. For more on this data, read previous posts on Job Growth.

Austin’s Class A Product Essentially Full, Despite Record Supply

2026-03-04T06:53:02-06:00

Despite seeing competition from record completion volumes, Austin’s Class A apartments are not struggling. Austin received roughly 26,800 new units over the past 12 months, growing existing inventory by 8.5%, according to data from RealPage Market Analytics. That completion volume was just shy of 1st quarter’s record high annual figure of 30,964 units. With such a massive volume of new units, it’s unsurprising that Austin occupancy registered at 93.9% in 2nd quarter, marking the 11th consecutive quarter below 95%, commonly referred to as the effectively full occupancy rate. However, occupancy is actually up year-over-year, as strong demand rose up to meet record supply volumes recently. In fact, breaking that down by product class, we see that Austin’s top-tier, stabilized Class A units did reach that effectively full level (95.1%) in 2nd quarter. That was a 270-basis point (bps) gain year-over-year and the first reading over 95% in Austin’s Class A units since mid-2022. @include('site.elements.media.image', ['fileId' => 33985, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Just a few years ago, Austin’s Class A stock was trailing other product lines in occupancy performance. As of 2nd quarter 2025, however, Class A stock was the only product class in Austin to register 95% or higher occupancy. The progress in Class B product was softer, rising 130 bps year-over-year to 93.8%, with Class C performing similarly with a 180-bps gain to 93.2%. So, it would appear that Class A product is “pulling up” renters from Class B and C units. However, Class A stock is not sacrificing rents to do that. While all product lines in Austin are logging rent cuts, the decline in Class A stock is the most mild. Prices were cut by just 1.8% in the year-ending 2nd quarter in the most expensive units, while cuts were deeper in the Class B (-6.8%) and Class C (-13.2%) product. @include('site.elements.media.image', ['fileId' => 33986, 'attributes' => ['bord...

Carolinas Region Absorbs 7% of its Existing Apartment Base

2025-08-05T02:00:03-05:00

Apartment markets across the Carolinas continued to bask in peak apartment demand recently. The region absorbed over 69,200 units in the year-ending 2nd quarter, which was a record for the region and more than double the five-year average. When looking at demand as a share of the region’s total existing unit count, the Carolinas came out notably ahead of the nation’s other regions. The Carolinas had 995,200 existing apartment units as of 2nd quarter, which was the smallest volume nationwide. That means the past year’s demand total represents 7% of the Carolinas region’s existing stock of apartments. By comparison, in the Southeast – the closest to the Carolinas geographically – annual demand for 82,500 units represented just 4.4% of the region’s existing product base. The closest to the Carolinas in size of existing stock was the Desert/Mountains region, which absorbed 91,800 units, or 5.5% of its rental base.

Multifamily Momentum Shifting in Top U.S. Markets

2026-03-04T06:53:02-06:00

While the leading markets for multifamily permitting have remained relatively consistent over the past year, the trajectory of apartment starts within these markets has shifted. Nine of last month’s top 10 markets for multifamily permitting returned in June with the top five remaining in order. New York, Dallas, Houston, Austin and Phoenix were again at the top in total units permitted for the year, but compared to their annual totals one year ago, Dallas and Houston have increased while New York, Austin and Phoenix have slowed sharply. @include('site.elements.media.image', ['fileId' => 33922, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '643']]) Atlanta and Orlando switched places on June’s top 10 list and Miami replaced Los Angeles at #10 after Newark and Columbus. However, looking at their annual apartment starts data from RealPage’s Market Analytics database, eight of the top 10 permitting markets saw a decrease in annual starts in 2Q25 compared to 1Q25, indicating their starts momentum is still slowing. Only Miami and Houston experienced an increase in annual starts from quarter to quarter. Compared to one year ago, annual apartment starts were down by almost 8,000 units in New York and from 2,900 to 7,200 units in Columbus, Newark, Austin, Phoenix and Atlanta. Orlando was little changed, but Dallas and Houston are showing signs of growing momentum for new apartment construction with increasing permitting and starts. Miami has had a late spurt of annual multifamily permitting (up more than 1,500 units from May to June) even though permits are still down year-over-year by 2,500 units. Additionally, Miami’s annual apartment starts increased by 1,186 units quarter-over-quarter and 2,471 units year-over-year. Returning to June’s metro-level multifamily permitting, half of the top 10 permitting markets increased their unit totals from last June by an average of 2,700 additional units, while the other five markets decreased by an average of...

RealPage Economy Express Episode 50

2025-08-05T02:00:03-05:00

Episode 50: The U.S. economy is navigating a tightrope. Growth is fragile, inflation isn’t cooling fast enough and consumers are cautiously hopeful. Inflation is warming up. Prices rose more in June than in May, driven by food and energy. Core inflation remains persistent, suggesting sticky underlying pressure. Producer prices didn’t budge overall, but goods got pricier while travel-related services dropped, reflecting uneven industry dynamics. Multifamily starts hit a 1.32 million annual rate, up 4.6% from May, but slightly lower than last year. Existing-home sales continued to fall. Prices remain high despite signs of softening demand and inventory gains. More people are applying for purchase loans, but refinancing is down as rates edge higher and loan amounts have declined. The labor market holds firm, but there are caution sign. Jobless claims are steady, but leading economic indicators are slipping. The Conference Board expects slower growth, but not a full recession. Sentiment is improving very slowly. Consumers are a bit more optimistic, but not overly confident. The Federal Reserve remains cautious. September could bring a shift in interest rates if inflation and job stability continue. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

Education and Health Services Dominate June Metro Job Gains

2026-03-04T06:53:02-06:00

Perennial jobs leader New York again led all major markets for employment gains in the year-ending June 2025 with 91,700 new jobs. Mirroring the trend at the national level, the New York-White Plains/Kiryas Joel-Poughkeepsie, NY market saw the bulk of its employment gains in the Education and Health Services sector, but unlike the U.S.’s 35%, this industry accounted for an amazing 88.8% of those gains in New York. Together with the Government sector, 99.9% of New York’s job gains in the past year were in just two industries. The next two of the top 10 markets for employment gains (Philadelphia and Los Angeles) also had very strong gains in the Education and Health Services sector (67% and 129%, respectively), and the remainder of the top 10 had gains from one-fifth to one-half of their total job gains in that sector. Orlando was the only top 10 job gain market with a larger share of employment gains in a different industry sector (Leisure and Hospitality Services at 31%). @include('site.elements.media.image', ['fileId' => 33862, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '642']]) Seven of last month’s top 10 job creation markets returned to the list in June with Washington, DC, San Antonio and Miami replaced by Los Angeles, Chicago and Raleigh/Durham. In fact, with the recent cuts in Government employment, DC dropped from #6 last month to #40 among RealPage’s top 150 markets for job gains. Philadelphia remained in the #2 spot while Los Angeles and Charlotte improved their annual gains enough to rank #3 and #4, dropping Orlando to #5. Houston slipped to #6 and Dallas fell to #8 behind Chicago as Texas’ hot jobs markets continue to cool. Salt Lake City dropped to #10 behind the improving Raleigh/Durham market. Together, the top 10 markets added 388,900 jobs in the year-ending June, which was about 94,600 more than the same 10 markets last June (up 32%) and 55,800 more than last month. Additionally, the next 10 markets (#11 through #20) of Re...

Record Apartment Demand Outpaces Elevated Supply in San Antonio

2025-08-02T02:00:04-05:00

San Antonio has a solid economy anchored by government, military and health care sectors. This market also has strong demographic tailwinds such as a younger population, continued in-migration and growth in the renter age cohort. Record absorption of 15,083 apartment units during the year-ending 2nd quarter in San Antonio outpaced completions of 11,464 units, also near record highs. Those completions grew inventory 5% and were led by apartment additions in the New Braunfels/Schertz/Universal City submarket of 3,073 units. The pace of new development is slowing, as San Antonio is set to receive just 3,642 new units over the next 12 months, which is one-third the current delivery volume and about half the market’s five-year annual average. Higher renewal conversion rates (50.8%) and longer terms on both new (12.5 months) and renewal (12 months) leases helped stabilize occupancy amid elevated supply. Occupancy hit 93.2% in 2nd quarter, and rents were cut by 3.5% year-over-year, driven by deep cuts in Class C product (-6.8%). In fact, this market hasn’t seen rent growth since mid-2023 and cuts are likely to persist in the near term, with growth expected to resume again in early 2027. Median single-family home prices ($317k) in San Antonio are lower than neighboring Austin ($489k) and pose a potential shadow market for higher wage households in the region.

Multifamily Starts Jump 31% in June

2026-03-04T06:53:02-06:00

There are some who find it hard to believe that the supply cycle may be turning up again, especially if you don’t trust the Census Bureau’s seasonally adjusted annual rate (SAAR) for multifamily starts. That rate increased 30.6% from last month to 414,000 units in June after falling 26.6% from April to May. Year-over-year, the increase is 25.8%. The 414,000 unit starts figure comes from seasonally adjusting June’s monthly starts figure of 36,700 units and annualizing it by multiplying by 12. This methodology results in some erratic month-over-month movement in the annual rate, especially since the monthly starts figure comes from a small sample from HUD’s Survey of Construction, which surveys only about 900 permit issuing places (out of almost 20,000 permitting places nationally). @include('site.elements.media.image', ['fileId' => 33806, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) The SAAR for multifamily permitting also exhibits erratic movement but not as severe as the starts series. June’s SAAR for multifamily permitting increased 8.1% from May to June but is up only 2.1% year-over-year at 478,000 units. Looking at the unadjusted housing data, the moving 12-month total for unadjusted multifamily starts shows a four-month upward trend while the trend for unadjusted multifamily permitting over the same period is relatively flat, averaging close to 430,000 units for four months before a slight uptick in June. Building permits are a leading indicator for starts, and there should be more upward movement in building permits if starts are increasing. Multifamily construction does appear to be in a bottoming out period currently but the timing and magnitude of a recovery in multifamily construction is yet to be seen. Additionally, bear in mind that multifamily (5+) permitting includes more than conventional, institutional grade, market rate apartments that industry watchers are concerned with. Potentially, the recent modest increase in...

Concession Values are Up, but the Number of Units Offering Discounts Has Faded

2026-03-04T06:53:02-06:00

The number of U.S. apartments offering concessions has started to trend downward, but the average value of the concessions being offered has gone up. Roughly 12% of stabilized conventional apartment units across the U.S. are offering a concession today, with an average discount rate of 9.3%. That translates to a little more than 30 days free, which is at least two days more than the average offered immediately following the COVID-19 pandemic. While this is some of the highest level of concession usage the U.S. has seen in stabilized assets in the last decade or so, there’s a key difference in today’s concessions versus the similarly high levels of concessions usage during the Great Financial Crisis in 2008 and 2009. That difference is that what is driving concessions is not a lack of demand, but rather an intense barrage of supply. @include('site.elements.media.image', ['fileId' => 33785, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Supply volumes have peaked and are on their way down in the majority of apartment markets across the U.S. In fact, 2025 deliveries in the nation are on track to be 25% less than 2024 levels. Assuming demand continues at its current robust pace, which is the forecast at RealPage Market Analytics, concession usage is expected to burn off for most of the country in the near term. Regional and market level concession trends are expected to vary in the near term. As the fall and winter months approach, concessions are expected to increase as they usually do, and then fall off again in the spring and summer months. More substantial burn off is expected in prime leasing season of 2026. For more information on the state of apartment markets across the U.S., including forecasts, watch the webcast Market Intelligence: Today’s Most Pressing Market Questions.

Baltimore Apartment Demand Hits a Record in 2nd Quarter

2026-03-04T06:53:02-06:00

Apartment demand hit a record high in Baltimore in 2nd quarter, outpacing elevated construction activity, which is quite the turnaround for a market that was seeing net move-outs in the recent past. Baltimore absorbed 6,769 units in the year-ending 2nd quarter, according to data from RealPage Market Analytics. That was nearly three times the market’s average annual absorption pace over the past 10 years, which was closer to 2,400 units. Current demand volumes in Baltimore were remarkably strong after the performance from the last half of 2022 and the first half of 2023, when the market was losing demand at an average pace of more than 3,400 units annually. @include('site.elements.media.image', ['fileId' => 33755, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Baltimore demand far outpaced concurrent supply volumes of 3,266 units in the past year. That supply pace was up from an average of about 2,700 units or so delivered annually in the past decade. As a result of strong demand, Baltimore occupancy pushed ahead of the national average recently. As of June, occupancy was at 95.8%, up 170 basis points (bps) since June of last year, with most of that – 130 bps – happening in calendar 2025. Occupancy was a tad lower at 95.6% in the nation overall as of June, up 140 bps for the year. But when looking at the growth since the start of 2025, the U.S. climbed at about half the pace of Baltimore at 80 bps for the calendar year. @include('site.elements.media.image', ['fileId' => 33758, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Solid demand and tightening occupancy in Baltimore have caused rent growth in recent months. Prices increased 1.1% in the market in the year-ending June. While that was behind the sizable rent growth Baltimore saw in 2022 and 2023, it was ahead of the national average of 0.5%. Rent growth in Baltimore, however, did come in shy of the Washington, DC average of 1.9% in the year-ending June....

Apartment Demand Far Outpaces Starts in Sun Belt Markets

2025-07-28T02:00:04-05:00

Across the U.S., apartment demand keeps climbing just as building starts have plummeted. In the year-ending 2nd quarter, nearly four more apartments were absorbed than started, with nearly 800,000 units absorbed, compared to about 215,000 units started, according to data from RealPage Market Analytics. That was an increase from the already solid ratio of 3.4 from 1st quarter. Across Sun Belt markets, however, that ratio varied. In Atlanta, there were 5.6 times more units absorbed than started in the year-ending 2nd quarter 2025. Austin was close behind with a demand-to-starts ratio of 5. San Antonio, Charlotte and Raleigh all had demand-to-starts ratios between 4.1 and 4.6. Only a handful of Sun Belt markets posted demand-to-starts ratios below the national norm, trailed by the lowest ratio in Miami and West Palm Beach, both at 1.4, indicating relative balance between forthcoming supply and current demand.

Though Still at Record Levels, Quarterly Apartment Supply Keeps Falling

2026-03-04T06:53:02-06:00

Apartment supply volumes remain elevated, though completions continued to drop in 2nd quarter 2025. Though 2025 represents the end of a very strong apartment supply run, the U.S. apartment market hit a ninth consecutive quarter of record completion volumes in 2nd quarter 2025. Quarterly completion volumes broke past the 100,000-unit mark in 2nd quarter 2023 for the first time since RealPage Market Analytics began tracking the U.S. apartment market in the 1990s. Delivery totals then increased for five straight quarters, peaking in 3rd quarter 2024 before ebbing slightly in the last three months of 2024. The drop in the first half of 2025, though, has been steep. @include('site.elements.media.image', ['fileId' => 33707, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Developers completed nearly 108,200 units in the April to June time frame. That was well behind 3rd quarter 2024 (159,000 units) and a bit below 1st quarter 2025 (116,000 units), but still just ahead of the 100,000-unit mark record. Not every region of the U.S. saw supply volumes fall in 2nd quarter, though all are down from recent peaks. New apartment deliveries continued to be most prolific in the South region of the U.S., as nearly 57,800 units wrapped up there in 2nd quarter 2025. But the South also saw the steepest pullback, delivering roughly 6,900 units less than in the first three months of 2025 and even fewer than the peak achieved in 3rd quarter 2024. @include('site.elements.media.image', ['fileId' => 33712, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) The West saw nearly 25,700 units delivered in 2nd quarter, which was about 2,500 units fewer than came online in the region in 1st quarter. This region also peaked in 3rd quarter 2024, and recent totals are well behind that mark. More mild deliveries were seen in the Midwest (12,600 units) and Northeast (12,200 units) in 2nd quarter 2025. Those completion totals were both up a bit from...

Economic Feasibility Slightly Improves for Multifamily Construction

2025-07-28T02:00:04-05:00

Developers are reporting an improvement in economic feasibility impacting multifamily construction delays, according to the latest research from the National Multifamily Housing Council’s June 2025 Quarterly Survey of Construction & Development Activity. In June, 43% of respondents reported construction delays, an improvement from the 58% of respondents in the March survey. As for the cause of such delays, 57% of respondents still said “project is not economically feasible at this time” but that marked the lowest rate seen since March 2023. Another 57% of respondents said “permitting, entitlement, professional services” caused delays, while 71% of respondents said “economic uncertainty” caused delays. Respondents could select more than one response. NMHC also added new questions related to construction labor and materials prices. Roughly half of respondents (48%) said they expect multifamily labor availability to remain about the same in the coming three months. Download the full research from NMHC here.

Updated Forecast Amid Declining Supply and Increasing Economic Uncertainty

2026-03-04T06:53:02-06:00

The 2nd quarter 2025 brought a fresh round of uncertainty to the U.S. economy, largely driven by external developments. In early April, the administration announced a series of reciprocal tariffs on several major trading partners. The move triggered a sharp selloff in equity markets and added new pressure on an already cautious Federal Reserve. While Chair Jerome Powell indicated that rate cuts were on the table earlier in the year, he acknowledged that the tariff announcement shifted the Fed’s near-term outlook. As of now, the Fed still expects to cut rates twice before the end of the year, but has offered no timeline, emphasizing that decisions will be guided by incoming data. Inflation trends have been somewhat uneven. The Personal Consumption Expenditures (PCE) price index, the Fed’s preferred inflation measure, rose just 2 basis points (bps) in March, but picked up in April and May, climbing 11 and 14 bps, respectively. On a year-over-year basis, the PCE stood at 2.3% in May (slightly below where it ended in 2024), but still above the Fed’s 2% target. With tariffs potentially pushing prices higher in the months ahead, the Fed has opted to wait for clearer signals before making any moves. Despite these headwinds, the labor market held up better than expected. Between April and June, the U.S. economy added roughly 449,000 jobs, with most of the gains coming from the private sector. That’s 13% growth over the same period last year, when job growth came in under 400,000. However, when looking at the first half of the year as a whole, job creation is down 21% compared to the first half of 2024. Over the past 12 months, the economy added just over 1.8 million jobs, down from more than 2 million the year before. Slower hiring may reflect both the economic drag from tariffs and the growing adoption of AI across a range of industries. Given these developments, we’ve updated our multifamily outlook for the next 12 months (3Q25-2Q26). Nationally, we’re forecasting effe...

Record Apartment Demand Boosts Occupancy in Myrtle Beach

2026-03-04T06:53:02-06:00

Record apartment demand improved occupancy notably in Myrtle Beach in the past year, but operators continue to cut rents in the face of elevated supply volumes. @include('site.elements.media.image', ['fileId' => 33682, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Apartment demand hit an all-time high in Myrtle Beach in the year-ending 2nd quarter, with absorption topping out at 3,825 units, according to data from RealPage Market Analytics. That was more than double the market’s five-year average of over 1,400 units and was nearly five times the decade norm of about 840 units annually. For reference, Myrtle Beach only had about 45,800 or so existing apartment units as of 2nd quarter. That means the past year’s demand total represents nearly 10% of the existing stock of apartments. For comparison, Anaheim also absorbed about 3,800 units of stock last year, and that market’s existing unit count was much bigger at over 272,000 units. @include('site.elements.media.image', ['fileId' => 33670, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Supply has also been significant in Myrtle Beach recently, hitting 2,193 in the year-ending 2nd quarter. That was quite a bit ahead of the five-year norm of 1,600 units, and more than double the 10-year average of about 1,000 units delivered annually. Just one year ago, Myrtle Beach was reacting very differently to elevated supply volumes, displaying one of the nation’s worst occupancy performances, as heavy supply weighed down this small apartment market’s resources. But a quickly growing population and solid demand have boosted occupancy at one of the fastest rates nationwide this year. While June occupancy in Myrtle Beach remained behind the national average, the market is quickly closing that gap. Occupancy in Myrtle Beach climbed to 94.6% in June after seeing one of the best annual increases nationwide at 420 basis points (bps). Among the 150 largest apartment markets, o...

Apartment Occupancy in Shreveport Trends Above U.S. Norm

2025-07-21T02:00:04-05:00

Occupancy in Shreveport tightened to 96.3% in June, marking the third consecutive month occupancy in this small market outpaced the U.S. norm, bucking historical trends. It was also the third consecutive month occupancy surpassed 96% in Shreveport, no small feat for a market where occupancy has trended closer to 93% over the last decade, according to data from RealPage Market Analytics. In fact, Shreveport’s June occupancy ranks as a 39-month high and was 440 basis points above the rate seen just 12 months ago. Strong demand and limited supply in this market known for its riverboat casinos and vibrant music scene has driven recent performance. Existing inventory increased only 3.6% over the last decade in Louisiana’s third most populous city to about 26,200 existing apartment units. Meanwhile, demand reached a 25-year high (1,116 units) in 2nd quarter. With limited vacancies, rents have accelerated, growing 4.8% annually. Still, the average effective asking rent in Shreveport as of June 2025 remained at $1,112 per month, one of the most affordable across the top 150 markets.

Major Markets with Lowest Unemployment Rates in May

2025-07-16T02:00:04-05:00

As of May, the nation’s unemployment rate averaged 4% after rising 30 basis points (bps) year-over-year, according to non-seasonally adjusted data from the Bureau of Labor Statistics. However, 12 of the nation’s 50 largest markets had rates below 3.5%. Miami and Nashville claimed the lowest unemployment rates in May, both at 2.7%. Both those markets lost some traction recently, with unemployment rising year-over year by 40 bps in Miami and 20 bps in Nashville. Indianapolis and Minneapolis tied for the third lowest unemployment rate in May at 3.1%. Unemployment in Indianapolis declined 60 bps over the past year, while the rate in Minneapolis rose 40 bps. Tying for the nation’s fifth lowest unemployment rate of 3.2% were Baltimore and Raleigh/Durham, after year-over-year increases of 50 bps and 20 bps, respectively. Atlanta, Austin, Fort Lauderdale and Salt Lake City all recorded May unemployment at 3.3%, tying for the seventh lowest rate nationally. Over the past year, unemployment was down in Atlanta (-10 bps) and unchanged in Austin, while unemployment increased in Fort Lauderdale (+40 bps) and Salt Lake City (+30 bps). Orlando and West Palm Beach tied with the 11th lowest unemployment rate of 3.4% in May, after rising 40 bps and 30 bps, respectively. On the flip side, Las Vegas continued to record the nation’s highest unemployment rate of 5.5% in May 2025, unchanged from May 2024.

Resilient Demand and Still-Muted Rent Growth Defines U.S. Apartment Market in 2nd Quarter 2025

2026-03-04T06:53:02-06:00

The U.S. absorbed an astonishing volume of apartment units in the year-ending 2nd quarter. “If there is a single word that can be assigned to the national apartment market as of mid-year 2025, then that word is resilient,” RealPage Chief Economist Carl Whitaker said. “A noisy economic backdrop including slowing (though above expected levels) job growth, declining consumer and business sentiment, and deeply entrenched uncertainty have yet to deteriorate demand for rental housing. And while headline rent growth may suggest fundamentally weak demand at first glance, the U.S. apartment market's ability to churn out exceptional demand amid the record supply wave remains a defining storyline for the industry." Over 227,000 units absorbed in the April to June period, a very strong reading for any 2nd quarter that pushed annual demand to above even the record tally seen during the demand boom of 2021 and early 2022. That record absorption load was met with rapidly declining delivery volumes. Over 535,000 units were completed across the U.S. in the last year, including over 108,000 units in 2nd quarter alone. While that annual completion volume easily stands above the nation’s long-term average, it comes in below the all-time high from the previous two quarters. @include('site.elements.media.image', ['fileId' => 33595, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '1233']]) Heads-In-Beds Strategy Prevails Rent growth at the mid-year point registered weaker than expected for some as rents grew a mild 0.19% in the month of June. Bigger picture, though, the readings falling into the annual rent calculations are still roughly matching the readings falling out, essentially replacing like with like for annual rent change. One thing that’s different, though, is that occupancy has steadily ticked up over the last year. Ergo, a modest rent reading appeared to support the idea that operators are preserving occupancy at the expense of rent growth, opting to fi...

Only Six of the Top 150 Apartment Markets Continue to See Occupancy Decline

2026-03-04T06:53:01-06:00

In the midst of prime leasing season, only six of the nation’s largest U.S. apartment markets are still seeing occupancy constrict. The U.S. overall saw occupancy tighten 140 basis points (bps) in the past year to stand at 95.6% as of June, according to data from RealPage Market Analytics. Most of the largest 150 apartment markets nationwide are also seeing occupancy improvement, with only six of the big 150 markets recording declines up to 100 bps in the year-ending June. @include('site.elements.media.image', ['fileId' => 33568, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '458']]) With continued decline, half of these markets are still seeing apartment occupancy rates hovering below pre-pandemic averages. @include('site.elements.media.image', ['fileId' => 33569, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Lincoln realized the nation’s deepest apartment occupancy contraction in the past year. Occupancy in this small market with just over 36,100 units backtracked 100 bps year-over-year to 95.1%. That rate landed 150 bps below Lincoln’s pre-COVID five-year average (2015 to 2019) of 96.5%. It also fell 180 basis points below the average over the last five years (96.5%). Contributing to this decline was somewhat elevated supply levels. Demand for 876 units fell short of the 1,139 units delivered in Lincoln during the year-ending 2nd quarter 2025. Madison, with nearly 81,000 existing units, ranked #149 for occupancy change in the year-ending June. Occupancy compressed 60 bps to 96.1%. That occupancy rate sat 120 basis points below Madison’s 2015 to 2019 average and 130 basis points below the five-year norm. While supply volumes have been a factor in Madison in recent years, supply has declined recently. In the year-ending 2nd quarter, only 1,815 units were delivered. That completion level fell about 18% below the same period last year. Meanwhile, absorption rebounded from negative territory experienced in 2024 in...

U.S. Labor Market Remains More Resilient Than Anticipated

2025-07-17T02:00:04-05:00

The U.S. labor market continued to persevere in June despite economic uncertainty. Employers added 147,000 workers to payrolls in June 2025, according to a survey of businesses by the Bureau of Labor Statistics. Those additions were up slightly from the 144,000 jobs added in May and were well above economists’ expectations of fewer than 118,000 job additions. Job gains in April and May were revised up by 11,000 and 5,000, respectively, equating to 16,000 more positions added than previously reported. The Government sector (+73,000 jobs) added the most jobs in June, led by increased hiring in State Government (+47,000 jobs) and Local Government (+33,000 jobs), while Federal Government (-7,000 jobs) continued to shed jobs. The Education/Health Services sector (+51,000 jobs) had the second-largest job increase during the month. Notable job losses were seen in Professional/Business Services (-7,000 jobs) and Manufacturing (-7,000 jobs). The only other major industries to lose jobs during June were Other Services (-5,000 jobs) and Mining/Logging (-2,000 jobs). Meanwhile, the unemployment rate (U3 or headline unemployment rate, which is seasonally adjusted, and is a survey of households) has registered in the narrow range of 4% to 4.2% over the past 14 months and came in at 4.1% in June. That was down from 4.2% in May and below expectations of 4.3%. This post is part of a series analyzing employment data from the Bureau of Labor Statistics. For more on this data, read previous posts on Job Growth.

More than 500,000 U.S. Apartments Have Been Delayed Since 2018

2026-03-04T06:53:01-06:00

Labor disruptions have recently emerged as a significant concern among apartment developers. That new threat adds to the concerns of tariff implementation, surging insurance premiums and rising construction costs. Roughly 500,000 units have been delayed across major apartment markets since 2018, according to data from RealPage Market Analytics. Los Angeles saw the most delays, with over 70,000 units disrupted during construction. That amounts to more than half of the market’s expected deliveries. Delays were also significant – at over 30,000 units – in the high-supply markets of New York, Seattle and Phoenix. @include('site.elements.media.image', ['fileId' => 33403, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) While the impact of tariffs can be seen on construction activity across the U.S., contributing to the increase in the cost of building materials, there are also more nuanced concerns contributing to these delays. Among developers, concerns also include operating expenses and, more recently, labor disruptions. Apartment construction heavily relies on immigrant workers, with dramatic regional variations that could lead to workforce vulnerabilities in some areas, according to the American Community Survey and estimates from the National Association of Home Builders. In Texas, Florida and New York, immigrants make up 37% to 38% of the construction workforce. In California, just under half (41%) the construction workforce is reported to be immigrant workers. @include('site.elements.media.image', ['fileId' => 33517, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) With construction activity already slowing, this disruption in the labor market threatens to further delay the apartment development pipeline, which could drive up costs and limit new housing supply. For more information on the state of apartment market expenses across the U.S., watch the webcast Market Intelligence: Beyond Tariffs: Navigating O...

Has the Next Supply Cycle Started?

2026-03-04T06:53:01-06:00

Real estate moves in cycles with periods of growing or slowing in between peaks and troughs. We have been in a period of slowing multifamily permitting for at least the past two years and nationally, we appear to have reached this cycle's trough. Individual markets can and do have different cycle timing, but it also appears that many have troughed for multifamily permitting as well. Charting six of the top 10 markets for multifamily permitting shows a clear pattern of peaks and valleys, with most reaching their peaks in 1st quarter 2023. Austin and Orlando hit their peaks in 2022 but maintained relatively high levels of permitting for longer periods. @include('site.elements.media.image', ['fileId' => 33458, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Two of the nation’s top apartment development markets – Dallas and Houston – have seen their annual multifamily permitting totals increase each month since September 2024. Orlando began increasing in November. Austin and Phoenix didn’t begin slowing until early 2024 and may not have reached bottom yet, but both had slight upticks in their annual permitting totals in May compared to April. Atlanta is another market where the annual permitting trend is difficult to call a trough. Given the current development environment concerning costs, lending availability and market uncertainty, the length and depth of this cycle’s trough remains to be seen. All but one of April’s top 10 markets for multifamily permitting returned in May, with Newark replacing Washington, DC on the list. Note that this month RealPage is using the most recent Core-Based Statistical Area (CBSA) names and geographic definitions based on the 2023 Office of Management and Budget delineations. In some cases, new CBSAs created in the 2023 delineations (like Kiryas Joel-Poughkeepsie-Newburgh, NY) were re-combined with their former metros (New York-White Plains) for consistent historical comparisons. Based on the current CBS...

Rent Cuts Persist in Santa Maria Despite Low Supply and Tight Occupancy

2025-07-11T02:00:05-05:00

The Santa Maria-Santa Barbara, CA apartment market, like most of California, has a chronically under supplied housing market. Still, operators here are cutting rents. Santa Maria is located along the Pacific coast, with more than 150 miles of coastline. The area is a popular tourist destination and one of the nation's largest wine-producing regions. The largest employers are the University of California, Santa Barbara and Vandenberg Space Force Base. Government, Education/Health Services and Leisure/Hospitality are the largest employment sectors, accounting for more than half of all jobs. However, Santa Maria’s population declined 0.8% from 2000 to 2024 to stand at 445,000 people, according to the latest estimates from the U.S. Census Bureau. Santa Maria, with roughly 29,000 existing units, added 174 units during the year-ending 1st quarter 2025, according to data from RealPage Market Analytics. This mild supply increased inventory a mere 0.6%, mirroring the 10-year average growth pace. Meanwhile, occupancy registered at a tight 96.5% in 1st quarter 2025. And yet operators resorted to rent cuts recently. During the year-ending 1st quarter 2025, effective asking rents fell 1.9%, following a year-over-year decline of 0.7% in 2024’s 4th quarter. Rent cuts in this market are rare. Since RealPage began tracking the market in 2012, the only other times rents declined on a year-over-year basis was in the last two quarters of 2020. For comparison, during the five years leading up to the pandemic (2015-2019), Santa Maria averaged effective asking rent growth of 5.2% and occupancy of 97.4%. Average effective asking prices of $2,706 were below southern California’s major coastal markets: Anaheim ($2,843), San Diego ($2,795) and Los Angeles ($2,789).

Texas Top Job Gain Markets are Slipping

2026-03-04T06:53:01-06:00

While still among the top markets for employment gains, Texas has seen a decline in rankings among the top 150 markets in the country. Houston and Dallas both slipped two spots on this month’s list of the top 10 leaders for job creation, from #2 and #3 to #4 and #5, respectively. Each added close to 29,000 jobs for the year. While San Antonio returned at the #8 spot, Austin dropped out of the top 10 in February after eight consecutive months among the top 10, ranking #12 in May. To be fair, the Dallas/Fort Worth metro would have consistently ranked either #2 or #3 for job gains over the past year (including this month). New York is still #1 for job creation with 76,700 jobs gained in the year-ending May. That was 39,000 jobs fewer than the previous 12 months. Note that this month RealPage is using the most recent CBSA names and geographic definitions based on the 2023 Office of Management and Budget delineations. In some cases, new CBSAs created in the 2023 delineations (like Kiryas Joel-Poughkeepsie-Newburgh, NY) were re-combined with their former metros (New York-White Plains) for consistent historical comparisons. @include('site.elements.media.image', ['fileId' => 33410, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Philadelphia and Orlando ranked ahead of Houston and Dallas in May, with Washington, DC and Salt Lake City following Dallas. After San Antonio, Charlotte slipped four spots to rank #9, gaining 24,600 jobs for the year, about even with last year’s pace. Miami rounded out the top 10 with a gain of 23,700 jobs. Although several markets moved around on this month’s top 10 list, all of April’s top markets returned in May. Together, the top 10 markets added 335,200 jobs in the year-ending May, which was about 75,500 less than the same 10 markets last May (down 18.4%). Additionally, the next 10 markets (#11 to #20) of RealPage’s top job gain markets saw their total gains decrease 15.1% from last year to total 173,200 new jobs...

Home Prices Decline Notably in Tampa, While New York Sees Big Gains

2025-07-08T02:00:03-05:00

U.S. home prices continue to increase, but those increases are gradually decelerating, with annual price gains slowing to the lowest level in nearly two years. U.S. home prices were up 2.7% year-over-year as of April 2025, according to not seasonally adjusted data from S&P CoreLogic Case-Shiller U.S. National Home Price Index, which measures average home prices across the nation. That increase was below the annual gain of 3.4% seen in March and was the smallest year-over-year price increase since August 2023. Looking at more granular results, the S&P CoreLogic Case-Shiller 20-City Composite Index, which tracks prices in the 20 largest cities, posted a year-over-year increase of 3.4% in April, down from an annual increase of 4.8% during March. Most of the markets tracked recorded an increase in prices over the past year. The biggest annual price hike was in New York at 7.9%, followed by Chicago (6%), Detroit (5.5%) and Cleveland (5.2%). As of April 2025, only two of the 20 cities in the index reported year-over-year price decreases, with the steepest decline of 2.2% in Tampa, while Dallas posted a mere 0.2% pullback.

Miami Apartment Market Regains the South Florida Occupancy Spotlight

2026-03-04T06:53:01-06:00

Miami is the tightest apartment market in South Florida, after recovering well from the pandemic-era occupancy decline. Before the COVID-19 pandemic, Miami tended to outshine the other two South Florida apartment markets in occupancy performance. In the five years leading up to the pandemic (2015 to 2019), Miami averaged occupancy at 96.1%, according to data from RealPage Market Analytics. Meanwhile, rates were lower at 95.1% in Fort Lauderdale and 94.4% in West Palm Beach. @include('site.elements.media.image', ['fileId' => 33282, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) In 2020, when occupancy rates took a hit across the county, all the South Florida markets lost some ground. Miami and West Palm Beach suffered more than Fort Lauderdale. When recovery started, Miami struggled more than the other two regional markets, as occupancy climbed slower here during the early months of 2021. Though the climb started slower, however, Miami recovery sped up by mid-year and this market hit rates above 98% in August 2021, one month before Fort Lauderdale and three months before West Palm Beach. Miami also held onto peak rates longer than its two neighbors, holding for eight straight months above the 98% mark. As occupancy leveled out in the years since, Miami lost less ground than the other two South Florida markets and now this market has returned to its place as the region’s occupancy leader. As of May 2025, Miami had occupancy of 95.9%, making it the only South Florida market with a rate ahead of the U.S. average. Occupancy was a bit lower at 95.5% in both Fort Lauderdale and West Palm Beach. Helping boost apartment occupancy in Miami in recent years, demand has pushed ahead of high supply volumes. In the year-ending 1st quarter 2025, Miami absorbed over 12,500 units, pushing ahead of concurrent supply volumes by over 1,200 units. @include('site.elements.media.image', ['fileId' => 33281, 'attributes' => ['border' => '0', 'width' => '1020...

Demand Outpaces Supply by Over 10% in Desert/Mountains Region

2025-07-04T02:00:05-05:00

Apartment demand has been strong recently in the Desert/Mountains region, outpacing heightened supply volumes. Nearly 77,000 apartments were completed in the Desert/Mountains region in the year-ending 1st quarter 2025, translating to an inventory growth rate of over 5%. That was the second highest percentage inventory increase nationwide, behind only the Carolinas. At the same time, just over 85,000 units were absorbed in the Desert/Mountains region, which includes Phoenix and Denver. With demand topping supply by about 9,000 units, roughly 11% more units were absorbed across the region than were delivered in the past year. This positive supply/demand relationship helped stabilize occupancy in the past year. For more information on the state of apartment markets across the Desert/Mountains region, including forecasts, watch the webcast Market Intelligence: Q2 Desert/Mountains Region Update.

Phoenix Dominates BTR Construction Pipeline

2026-03-04T06:53:01-06:00

Roughly 64,200 build-to-rent, or BTR units, were under construction as of early June, scheduled to complete by the end of 2027, according to RealPage Market Analytics. Accounting for about 57% of units under construction, the Sun Belt continues its streak as a the industry’s development leader. With about 36,840 BTR units underway (including properties in lease-up where construction is ongoing), the South leads the nation. Those units are projected to complete by May 2027. @include('site.elements.media.image', ['fileId' => 33320, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) That total outpaced the next closest region, the West, nearly two-to-one. At the same time, the West has 19,413 units advancing for completion by 3rd quarter 2027, or about 30% of the U.S. total. Following, the Midwest (5,831 units) and Northeast (2,117 units) each account for less than 10% of that total delivering by the end of 2026. @include('site.elements.media.image', ['fileId' => 33321, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Among markets, Phoenix stands head-and-shoulders above other Sun Belt peers as over 11,500 BTR units were underway there as of June. Considered the birthplace of BTR, it’s no surprise that Phoenix accounted for roughly 18% of the U.S. total. In a distant second, Dallas had nearly 5,500 units underway as of June. Houston took the number three spot with about 4,470 units under construction. Rounding out the top ten: Austin (3,734 units), Atlanta (2,827 units), Fort Worth (2,687 units), Tampa (2,559 units), Charlotte (1,202 units), Denver (1,182 units) and San Antonio (1,147 units). Another 21 markets across the U.S., heavily concentrated in the South and West, have 500 or more units under construction. Of note, developers in the small market, Myrtle Beach, have 983 units underway. Meanwhile, major markets Nashville (971 units) and Raleigh/Durham (936 units) also both count over 900 units in development....

Residential Starts Fall Almost 10%

2026-03-04T06:53:01-06:00

Annualized total residential starts dropped 9.8% in May to 1.256 million units, down from April’s revised rate of 1.392 million units, according to the latest data from the U.S. Census Bureau and HUD. The month-over-month change in the seasonally adjusted annual rate (SAAR) for multifamily starts accounted for that drop as May’s rate of 316,000 starts fell 30.4% from last month’s pace (although, it’s still up 5% from last year). The SAAR for single-family starts was virtually unchanged from April at 924,000 units, up just 0.4% for the month but down 7.3% for the year. While single-family starts have been below 950,000 units for the past three months, they have hovered around the one-million mark for the past three years. Rising inventories and costs and falling prices have apparently given some homebuilders pause. The forward-looking building permit data shows continued softness for single-family construction as the SAAR for May was 898,000 units, down 2.7% from April and 6.4% from last May. However, multifamily permitting inched up 1.4% from last month to 444,000 units, up 13% from last year’s annualized rate. Together with the small plex product, total residential permitting was down 2% for the month and 1% for the year to 1.393 million units. Despite an increase in multifamily starts compared to last year, the SAAR for multifamily units under construction decreased almost 19% from last May and 1.5% from April to 733,000 units. Single-family units under construction were down 7.6% for the year and 1.3% from April to 623,000 units. Conversely, single-family completions rose 8.3% from April to 1.027 million units and were unchanged from last year. Multifamily completions were essentially unchanged from April at 487,000 units but were down 6.7% from last May. @include('site.elements.media.image', ['fileId' => 33312, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '406']]) Compared to one year ago, the annual rate for multifamily permitting inc...

Three Times More Apartments Absorbed than Started This Year

2025-07-03T02:00:05-05:00

The U.S. apartment market is absorbing over three times more units than developers are getting off the ground right now. Just over 209,000 new market-rate apartment units started construction across the U.S. in the year-ending 1st quarter 2025. That was well below the annual average (307,300 units) from the past decade. In fact, annual starts volumes have fallen off every quarter for 10 quarters after peaking at roughly 587,000 units started in the year-ending 3rd quarter 2022. Meanwhile, the U.S. market is absorbing apartments much faster than new projects can be started. Demand reached a record high of nearly 708,00 units in the year-ending 1st quarter. That means that there were 3.4 times more units rented than started in the last year, which marks the highest demand-to-starts ratio since 2010.

What We Got Right – and Wrong – About the U.S. Economy So Far in 2025

2026-03-04T06:53:01-06:00

Back in January, RealPage economists made predictions about the economic landscape of 2025 and its effects on the apartment market. Let’s take a look at how those forecasts have panned out so far in 2025. @include('site.elements.media.image', ['fileId' => 33263, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Job Growth As a driver of apartment demand, moderating job growth was a concern going into 2025. In the first five months of the year, job growth definitely slowed, though jobs are still being added at a relatively steady pace. Sectors losing the most jobs as of May were Manufacturing and Other Services, while Education/Health Services added the most employees to the workforce. @include('site.elements.media.image', ['fileId' => 33262, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Wage Growth Job growth tends to translate into wage growth. In the year-ending May, average hourly earnings were up about 3.9%, according to the Bureau of Labor Statistics. Most of those gains were seen in January and May, when paychecks bumped up around 42 basis points (bps) each. That performance tracks with what our economists predicted in January, as there was no real reason to think wages wouldn’t keep rising this year. @include('site.elements.media.image', ['fileId' => 33280, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Inflation Inflation was on the rise back in January, climbing for four straight months. At the same time, the Federal Reserve had just cut the funds rate by 25 bps, which added to the uncertainty about where things were headed. Still, our economists predicted lower inflation ahead, and that’s exactly what happened. Consumer prices were up 2.4% in the year-ending May, holding pretty steadily from April figures. @include('site.elements.media.image', ['fileId' => 33264, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) But inflation could go back up s...

Markets with the Most Fortune 500 Headquarters in 2025

2025-06-23T02:00:06-05:00

The nation’s 500 biggest revenue-generating businesses produced a total of $19.9 trillion in revenue during the 2024 fiscal year, an annual increase of nearly 6%, according to the recently released 2025 Fortune 500 rankings. That revenue figure represents roughly two-thirds of the nation’s gross domestic product. The companies that made it onto the Fortune 500 list this year are headquartered in 227 cities across 37 states and fall within 106 markets based on apartment markets defined by RealPage Market Analytics. New York continues to rank as the nation’s top market with the headquarters of 49 Fortune 500 companies in the 2025 rankings, up by two companies from 2024’s list. The #2 market in the nation is Chicago, home to 30 Fortune 500 companies, with that count unchanged year-over-year. At #3, Houston has 26 Fortune 500 headquarters, up by three companies over the past year. San Jose gained one company and overtook Dallas, taking the #4 spot with 21 Fortune 500 headquarters. Washington, DC also surpassed Dallas, gaining one company in the past year and ranking #5 with 20 Fortune 500 headquarters. Dallas has 19 Fortune 500 headquarters and dropped to the #6 spot after losing one company over the past year. Atlanta’s Fortune 500 headquarters count was also down by one in 2025 at 15 but remained in the #7 spot nationally. Minneapolis remained in the #8 slot, with its Fortune 500 headquarters count unchanged at 15. Boston and San Francisco remained tied at #9, both with 14 companies and both unchanged year-over-year.

Demand Holds Up Austin Apartment Fundamentals During Surging Supply

2026-03-04T06:53:01-06:00

The extreme volumes of apartment supply hitting Austin in recent years should have eroded market fundamentals. But just like traffic on IH-35, the constant jam of back-to-back deliveries couldn’t take the Texas capital down, as evidenced by increasing occupancy rates. Supply volumes hit a record high in Ausitn recently, with over 31,000 new units delivered in the year-ending 1st quarter, according to data from RealPage Market Analytics. That was one of the biggest volumes nationwide (topped by only Dallas) and more than doubled Austin’s average annual completion volumes of roughly 13,000 units from the past decade (2015 to 2025). And the last decade’s completion pace in Austin was more than double the average annual volumes of 4,400 units in the decade before that (2005 to 2015). @include('site.elements.media.image', ['fileId' => 33181, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Supply volumes of this magnitude could have caused fundamentals to soften for an extended period. But, so far, strong job growth, domestic in-migration and a young renter base have kept Austin’s occupancy afloat during a time when apartment market growth has exploded. Austin saw its population grow by 10.9% between 2020 and 2024, according to the latest estimates from the U.S. Census Bureau. That was the strongest showing among the nation’s largest markets. Demand isn’t typically a struggle for Austin. In fact, among the nation's 50 largest apartment markets, only Austin and Raleigh avoided net move-outs throughout both the Great Recession and the COVID-19 pandemic downturn. Austin hasn’t seen annual net move-outs since the Dot-com crash of the early 2000s. And when record apartment supply volumes loomed over the market in recent years, demand rose up to match them. In the year-ending 1st quarter, Austin apartment demand hit a record high of nearly 31,000 units, running right in line with record completion volumes. @include('site.elements.media.image', ['...

Major Texas Markets Post Net Demand Surplus

2025-06-25T02:00:05-05:00

Some of Texas’s biggest apartment markets have been national leaders for both supply and demand in recent years. Among them, Houston has seen the most net demand (demand less concurrent supply). Dallas, Houston and Austin ranked among the nation’s top five markets for demand in the year-ending 1st quarter, joined by New York and Phoenix, according to data from RealPage Market Analytics. Dallas, Austin and Houston also ranked among the top five national markets for apartment supply in the past year, joined by Phoenix and Atlanta. Houston, however, was the only Texas market to rank among the nation’s top five for demand surplus in the last year. Annual absorption in Houston topped concurrent supply by 8,034 units in the year-ending 1st quarter. Only New York saw a bigger net demand volume. Los Angeles, Washington, DC and Chicago also ranked among the top five. Dallas just missed out on a top five performance, with demand topping supply by 3,500 units. Austin was the only large Texas apartment market to see demand come in below supply, but the gap was negligible at only about 50 units.

Occupancy Slumps in Major South Region Markets

2026-03-04T06:53:01-06:00

While apartment demand across the South region has been stout, hefty delivery volumes have continued to weigh down occupancy across the region. Occupancy in the South tightened 170 basis points (bps) to 94.8% in the year-ending May. Still, that rate fell 80 bps below the U.S. norm (95.7%) and ranked the South as the only region with occupancy trailing the U.S. Occupancy in the Northeast led the nation at 97.1%, roughly 220 bps above the South region average. The Midwest and West regions followed at 96.5% and 95.8%, respectively. @include('site.elements.media.image', ['fileId' => 33176, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Although the South region occupancy rate in May ticked above the region’s pre-pandemic five-year average (94.5%), about 80% of South region markets lagged the national norm contributing to the region’s underperformance, according to data from RealPage Market Analytics. For perspective, 12 of the 15 markets with the lowest occupancy in May were in the South. @include('site.elements.media.image', ['fileId' => 33222, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) At the bottom of the list, San Antonio trailed the nation with occupancy at 93.1%. That rate straggled slightly below San Antonio’s pre-pandemic norm (93.3%). The existing unit count in San Antonio has climbed more than 35% since 2020, weighing down occupancy despite strong demand. In a similar position, occupancy in Austin and Fort Worth slumped below 94%, both to 93.8%. That rate was more than 200 bps below the pre-pandemic five-year average for Fort Worth and an 80-bps difference for Austin. Rounding out the bottom five performers were Jacksonville (94.1%) and Atlanta (94.2%). Occupancy in Jacksonville remains 80 bps below its pre-pandemic norm and Atlanta 120 bps. Three other major markets registered occupancy at 94.9% or below in May: Salt Lake City (94.9%), Phoenix (94.6%) and Denver (94.5%).

Class A Occupancy Recovers, Though Still Trails B and C Assets

2026-03-04T06:53:01-06:00

Further proving that the U.S. apartment market has captured outsized demand, occupancy has trended up across the price spectrum over the last year or so. Class A, B and C units all reported year-over-year occupancy gains in May, with the highest growth seen in the priciest asset class. Occupancy in stabilized Class A apartments hit 95.7% in May, the highest rate seen since June 2022, according to data from RealPage Market Analytics. That reading ranked a hair below that of Class B occupancy (95.8%) and a hair above the Class C rate (95.6%). That Class A reading also marked the highest annual gain across the price spectrum. Year-over-year, Class A occupancy climbed 170 basis points (bps), compared to a climb of 150 bps in Class B and 140 bps in C units. @include('site.elements.media.image', ['fileId' => 33139, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) In the years leading up to the global pandemic, it was typical for Class C units to be the most occupied, followed closely by Class B units and trailed by Class A units. The pre-COVID five-year average occupancy across product classes reflects this. From 2015-2019, Class A units averaged the lowest occupancy (94.7%) with tighter rates in Class B (95.3%) and C (95.4%) units. Since late 2023, however, Class B units have consistently claimed the fullest occupancy, as is the case today, with Class C units following closely behind. Class A units, which are the most sensitive to competition from new product in lease-up as well as resident turnover due to home purchase, have labored under supply pressure throughout the last couple years to generally stand below average. Until recently, that is. Occupancy across all product classes registered above their pre-pandemic five-year norms as of May.

Will Tariffs Impact Apartment Supply Peaks in West Coast Markets?

2025-06-24T02:00:04-05:00

While U.S. apartment supply peaked in 2024, some West Coast apartment markets are set to see completion volumes crest in 2025 and 2026. The nation overall hit its annual supply peak in calendar 2024, when over 585,000 new units delivered across the U.S. Several large and mid-sized apartment markets have already hit delivery peaks as well, including West Coast markets Oakland, San Francisco and Salem, Oregon. But several West Coast markets are scheduled to see supply volumes crest by the end of 2025, including Riverside San Jose and Bakersfield. West Coast markets slated to see supply peaks in 2026 include Oxnard, Anaheim, Los Angeles and San Diego. However, one challenge that could impact future supply is the influence of tariffs on the construction industry. The market has already seen shifting timelines, including in Los Angeles, which could impact the way these supply peaks hit in the near term. For more information on the state of apartment markets across the West Coast, including forecasts, watch the webcast Market Intelligence: Q2 California/Pacific Northwest Update.

Only Six Major Markets Managed Consistent Positive New Lease Trade-out Since 2023

2026-03-04T06:53:01-06:00

New lease rate change, also called new lease trade-out, has been under pressure throughout the national supply wave over the last couple years. At the U.S. level, new leases were cut as much as 4.4% on an annual basis at the trough seen in late 2024, according to data from RealPage Market Analytics. Across a small handful of major markets, however, new lease trade-out never turned negative. Those markets – Anaheim, Columbus, Kansas City, New York, Philadelphia and Virginia Beach – managed modest (and sometimes near-stagnant) growth to new leases while the nation at large was slashing rents. @include('site.elements.media.image', ['fileId' => 33116, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '501']]) All six of these markets hit their respective low points for new lease trade-out in the final months of 2024 when supply was peaking nationwide. Anaheim is the relative leader among this grouping as new lease trade-out bottomed out at 1.4%. (Austin and Denver, meanwhile, were slashing new leases roughly 10% at that time.) Columbus, Kansas City and New York managed new lease growth between 0.5% and 1% during that time. Philadelphia and Virginia Beach essentially posted no change to new leases in late 2024, which still made those markets national leaders for this metric. These markets have generally received lower development interest in the last few years. Compared to the national inventory growth rate of 3% in calendar 2024, these markets mostly posted more modest apartment supply gains, allowing operators to realize more pricing power. @include('site.elements.media.image', ['fileId' => 33202, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) The exception to this list might be Columbus, where a steady supply wave has been cresting (and is not set to peak until late in 2025). Places like New York and Anaheim have seen comparatively low inventory growth rates, and both of those markets have yet to hit peak delivery volume...

RealPage Economy Express Episode 49

2025-06-20T02:00:05-05:00

Episode 49: The U.S. economy is balancing between growth and uncertainty. The labor market remains resilient but housing is sluggish and consumers are acting cautiously. Job growth exceeded expectations, with payrolls increasing by 139,000 employees in May. Healthcare and leisure sectors led job gains. Wages rose 0.4% in May and 3.9% year-over-year. Construction spending fell 0.4% in April, marking the first annual decline since the pandemic. Residential construction declined by 0.9%, and nonresidential fell by 0.5%. Public spending on infrastructure, particularly highways, provided some support. Pending home sales dropped 6.3% in April, with the West experiencing the sharpest decline. Home prices rose 3.4% year-over-year in March, with notable regional differences. Consumer spending increased just 0.2% in April, mainly driven by services. The personal saving rate climbed to 4.9%, signaling caution among households. Inflation remained mild, with the core index rising just 0.1% in April and 2.5% year-over-year. Tariff uncertainty is causing businesses to brace for possible price hikes. The University of Michigan’s Consumer Sentiment Index remained low, with nearly half of consumers worried about basic affordability. The Fed’s Beige Book reported slight declines in economic activity, softer hiring, and rising cost concerns. Unemployment claims ticked up, with initial claims hitting 247,000. Businesses across regions are showing hesitation in making major investment decisions. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

Hiring by U.S. Employers Remains Steady in May

2025-06-20T02:00:05-05:00

U.S. job growth remained fairly steady in May and the unemployment rate was unchanged. Employers added 139,000 workers to payrolls in May 2025, according to a survey of businesses by the Bureau of Labor Statistics. Those additions were down from the 147,000 jobs added in April but were above the roughly 125,000 to 130,000 job gains expected by economists. However, job gains from March and April were revised down by 65,000 and 30,000, respectively, equating to 95,000 fewer positions added than previously reported. The Education/Health Services sector (+87,000 jobs) added the most jobs in May, while notable job loss was seen in Manufacturing (-18,000 jobs) and Other Servies (-8,000 jobs). The only other major industries to lose jobs during May were Mining/Logging (-1,000 jobs) and Government (-1,000 jobs). However, the Federal Government subsector continued to lose jobs, which was down 22,000 jobs in May. That contributed to the net loss of 56,000 Federal Government jobs since January, largely driven by the Department of Government Efficiency initiatives. Meanwhile, the unemployment rate (U3 or headline unemployment rate, which is seasonally adjusted, and is a survey of households) has registered in the narrow range of 4% to 4.2% over the past 13 months and has remained unchanged at 4.2% since March. This post is part of a series analyzing employment data from the Bureau of Labor Statistics. For more on this data, read previous posts on Job Growth.

Charlotte is Set to Reach Peak Apartment Supply in 2nd Quarter 2025

2026-03-04T06:53:01-06:00

Apartment construction across the U.S. appears to have peaked in 2024, but in some individual markets, the peak is yet to come. Charlotte is expected to reach an apex in new supply in 2025, and then pull into the naional lead for expansion, as the current leader – Austin – sees inventory growth wane. The Charlotte apartment market is expected to reach peak annual inventory growth in 2nd quarter 2025 when its stock is set to grow 8.4%, according to data from RealPage Market Analytics. That would be the market’s largest delivery load since RealPage began tracking the market in 1995 and the second-fastest growth among the nation’s 50 largest apartment markets, behind Austin (8.8%). @include('site.elements.media.image', ['fileId' => 33030, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Most recently, Charlotte delivered 17,914 units in the year-ending 1st quarter 2025, growing total inventory 7.8%, which also marked the second-highest inventory boost among the nation’s largest markets, again after only Austin which reached its peak of 10.1% growth. The largest share of Charlotte’s new supply in the past year (roughly 57%) was concentrated in just three of the market’s 15 submarkets – Southwest Charlotte (3,813 units), Uptown/South End (3,576 units) and North Charlotte (2,724 units). Charlotte’s supply wave is expected to trend down in the second half of 2025 and into early 2026, though the rate of growth will still be impressive. The Charlotte apartment market is expected to deliver 14,236 units in the year-ending 1st quarter 2026, growing total inventory 5.9%. Autin inventory growth rates are expected to fall off notably by that time, leaving Charlotte to lead the nation’s largest 50 markets, followed closely by Phoenix (5.8%). Five of Charlotte’s 15 submarkets are set to receive nearly three-fourths of the market’s completions in the coming year. Southwest Charlotte (3,204 units) is expected to lead again for new supply, followed by Hun...

May Occupancy Holds as Rent Recovery Falters

2026-03-04T06:53:01-06:00

U.S. apartment occupancy held firm in May after a steady climb throughout the early months of 2025. At the same time, rent change in market-rate apartment units, which had been trending up slightly after months of stagnation, backtracked from last month. Occupancy in the U.S. apartment market registered at 95.7% in May, in line with last month’s reading (95.7%) and up 90 basis points (bps) year-to-date, according to data from RealPage Market Analytics. All the nation’s 50 largest apartment markets posted occupancy growth year-over-year, though about 40% of markets posted declines in the month of May. Across the nation, the South region posted a mild month-over-month decline in occupancy (-10 bps). Occupancy in the West remained unchanged, while the Midwest (+10 bps) and the Northeast (+20 bps) earned modest improvements over last month. @include('site.elements.media.image', ['fileId' => 33045, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '1233']]) At the same time, monthly effective rent growth reached 0.26% in May, a mild reading that registered at about half the rate seen in May 2024 (0.51%). As such, annual effective rent growth appeared to backtrack, softening from last month’s 1% reading to stand at 0.7% in May. The Midwest again posted the strongest annual rent growth nationwide (3.4%), followed by the Northeast (3.2%). The West region still trailed the national norm at 0.3% growth year-over-year, while the South was the only region to post rent cuts in the year-ending May (-0.9%). Several South region major markets saw rents fall on a monthly basis, deepening annual rent cuts after previous readings appeared to indicate recovery. Austin – the nation’s rent growth laggard – cut rents 0.9% in May, causing annual cuts to reach 8% after less severe readings in recent months. Phoenix, Tampa, Houston, Memphis and Sacramento all posted monthly rent cuts between 0.4% and 0.6% in May. @include('site.elements.media.image', ['fileId' => 33026,...

Anaheim was the Only Large Apartment Market to Post Net Move-Outs in 1Q25

2025-06-05T02:00:03-05:00

Of the nation’s 50 largest apartment markets, only one logged net move-outs during the first three months of 2025. Anaheim, with nearly 272,000 existing units, saw its occupied unit count drop by 319 units during 1st quarter, according to data from RealPage Market Analytics. Throughout RealPage's 29-year data set for Anaheim, net move-outs occurred during the 1st quarter roughly half the time (15 of 29 1st quarters). For comparison, the other large Southern California markets of Los Angeles, Riverside and San Diego posted quarterly absorption of roughly 1,900 units to 3,400 units during 2025’s 1st quarter. Among Anaheim’s 16 submarkets, nine recorded net move-outs in 1st quarter, with some of the worst showings concentrated in the three Irvine submarkets (-309 units in total). Anaheim’s net move-outs during the quarter left overall demand in the year-ending 1st quarter 2025 at 2,595 units, the second-weakest result among the nation’s largest markets, ahead of only Memphis (2,166 units). Still, occupancy has remained strong in Anaheim, above 96% for nearly five years and above 95% for 13 years. Occupancy in the market averaged 96.3% during 1st quarter 2025, the fourth-strongest reading among large markets, behind only New York, Newark and San Francisco.

Multifamily Operating Expenses Moderate Significantly, But Still Well Above Pre-Pandemic

2026-03-04T06:53:01-06:00

Multifamily operating expenses moderated significantly in the last year, but cost per unit remains about two-fifth above the pre-pandemic rate nationwide. The COVID pandemic set the stage for a high-demand and low-supply environment as the world saw significant disruption to manufacturing, logistics, and distribution. In the years following 2020, inflation surged across all sectors of the economy, impacting both private and commercial goods and services. The multifamily industry was no exception, as owners and operators in the market-rate space saw operating expenses surge post-pandemic. Between 1st quarter 2021 and 1st quarter 2024, the average annualized expense cost per unit grew $445 or 24.4%. That increase compared to just under 18% cumulative growth in the three years leading up to 1st quarter 2020. If we look back over the last 10 years, that cumulative growth is not too surprising considering OPEX growth peaked in 2023 at 8.6% year-over-year – more than double the national norm between 2015 and 2019 of 3.5%. @include('site.elements.media.image', ['fileId' => 32727, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) The good news: Though operational expenses in multifamily assets continue to grow and sit roughly 39% above where they were prior to the pandemic, the pace of increase has slowed to the lowest level since early 2021. Across nine operational expense categories tracked by RealPage Market Analytics, all but two – utilities and payroll – moderated over the last 12 months. The most significant decline has been in insurance growth, which fell to just over 7% on an annualized basis in 1st quarter 2025. That compares to an incredible increase of 33.5% just one year prior. Taxes, another pain point for property owners as they account for roughly 30% of total OPEX costs, also registered a substantial drop. This time last year, taxes were growing by nearly 4% annually on average. But through the end of March 2025, the cost of taxe...

Top Multifamily Permit Markets Converge in April

2026-03-04T06:53:01-06:00

Four of April’s top 10 markets for multifamily permitting came together around an annual total between 11,400 and 12,300 units, after each market was permitting at very different levels one year ago. According to the latest data from the U.S. Census Bureau, Austin, Orlando, Phoenix and Atlanta finished the year-ending April with multifamily permitting totals close to each other. Orlando was the only one of those four to see an increase in units permitted from last April, increasing by 4,351 units for the year. Meanwhile, Atlanta decreased permitting by 3,088 units, Phoenix decreased by 5,891 units and Austin plunged by 7,910 units from last year. @include('site.elements.media.image', ['fileId' => 32922, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) In addition to Austin, Phoenix and Atlanta, Los Angeles and Washington, DC had significant declines in annual multifamily permitting of about 4,000 to 4,500 units, respectively, among the top 10 permitting markets. Conversely, New York, Dallas and Houston had modest increases for the year, while Columbus, OH saw their unit count increase by almost 22% or 1,431 units to 8,060 units. @include('site.elements.media.image', ['fileId' => 32921, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '685']]) New York continued to lead the nation for multifamily permitting, followed by Dallas, Houston and Austin. Orlando, Phoenix and Atlanta again followed this month’s top four markets, but Los Angeles reemerged onto April’s top 10 list at #8, followed by Columbus and Washington, DC. Last month’s #9 – Miami – slipped to #16 as their annual permitting dropped by 3,186 units. Tampa also experienced a decrease of more than 3,000 units in annual multifamily permitting with both Miami and Tampa totaling close to 6,800 units for the year-ending April. Other markets with significant year-over-year decreases in annual multifamily permitting in the year-ending April were Denver (-2,866 units),...

Midwest Region Leads U.S. in Rent Growth in April

2025-06-10T02:00:03-05:00

The Midwest has led the nation for rent growth in recent years, straying from the region’s “slow and steady” reputation. As of April 2025, the Midwest reported the highest annual rent growth of any region nationwide at 3.6%. That was notably ahead of the U.S. average of 1%. The Midwest region generally doesn’t lose much ground during periods of national underperformance, but the region also doesn’t report sizable growth during national upturns as well. Instead, the Midwest seems less affected by national trends and more inclined to chug along its own steady path. In the few years leading up to the pandemic, the Midwest commanded modest rent growth below the national average at about 3% annually. During the pandemic period of 2020 and 2021, when the U.S. suffered deep rent cuts, the Midwest held out with marginal growth. The Midwest didn’t gain as much ground during the rebound period in 2022, and has since returned to its own stable cadence, but one that is well ahead of U.S. norms. For more information on the state of apartment markets across the Midwest, including forecasts, watch the webcast Market Intelligence: Q2 Midwest Region Update.

Northeast/Mid-Atlantic Apartment Occupancy Surges Ahead of National Norms

2025-06-10T02:00:03-05:00

Apartment markets across the Northeast and Mid-Atlantic regions were – for the most part – operating in a low vacancy as of April. Out of the nation’s 150 largest apartment markets, 26 are located in this region. Eight of those were at least 97.5% occupied in April, including Syracuse, Manchester, Rochester, Albany, Nassau, Worcester, Newark and Allentown. Another five markets were at least 97% full, including New York, Providence, Harrisburg, Bridgeport and Springfield. In fact, all but one of the markets in this part of the country boasted occupancy above the U.S. average as of April. That lone market with occupancy below the U.S. norm was Salisbury, with a rate of 94.6%. The Northeast/Mid-Atlantic region markets have been working with a housing shortage in recent years, leading to tightened occupancy. Low vacancy rates have increased pricing in the area as well. All but one of the region’s markets (Buffalo) logged rent change greater than the U.S. average in the year-ending April. On the other hand, Connecticut markets New Haven and Hartford ranked among the top five nationally for annual rent change as of April. For more information on the state of apartment markets across the Northeast/Mid-Atlantic region, including forecasts, watch the webcast Market Intelligence: Q2 NYC & Northeast/Mid-Atlantic Region Update.

Job Losses Persist in Bay Area and Midwest Markets

2026-03-04T06:53:01-06:00

Despite a cumulative increase in annual jobs gained among the top 10 markets from March to April, some areas of the country are facing weak employment gains or job cuts. All three metros in the Bay Area (San Francisco, Oakland and San Jose) suffered moderate job losses for the year-ending April 2025, continuing the trend seen throughout the first few months of this year, according to the latest data release from the Bureau of Labor Statistics. Additionally, several Midwest metros have begun to experience mild employment losses recently as well, including St. Louis, Kansas City, Des Moines and Milwaukee. On the other hand, the top markets for job creation continue to lead the nation. Nine of March’s top 10 job gain leaders returned in April, with perennial leader New York once again at the top. New York added 81,000 jobs for the year, slightly higher than last month but down 63,200 jobs from April 2024. @include('site.elements.media.image', ['fileId' => 32891, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Houston replaced Dallas at #2 on the list and Philadelphia jumped three spots to follow Dallas at #4. Charlotte moved up a spot and Orlando dropped two spots, while Washington, DC slipped to #7 as DOGE cuts have yet to make a meaningful impact on the Capital’s overall employment. San Antonio and Miami remained among the top 10 job creators in April, but Raleigh/Durham was replaced on this month’s list by Salt Lake City, which improved annual job gains by 6,000 from March and by 8,600 jobs since last year. Together, the top 10 markets added 347,400 jobs in the year-ending April, about 110,400 less than the same 10 markets last April (down 24.1%). Additionally, the next 10 markets (#11 through #20) of RealPage’s top job gain markets saw their total gains decrease 28.9% from last year to total 158,700 new jobs. Metro level job gains continue to slow as the last time any market exceeded 100,000 new jobs was in January and only New Yor...

RealPage Economy Express Episode 48

2025-06-04T02:00:04-05:00

Episode 48: Inflation is easing but remains sticky, housing supply is tightening, credit concerns are growing, and mortgage rates are a persistent challenge. Consumer prices rose 0.2% in April, though the headline index eased to 2.3% growth year-over-year, the slowest pace since early 2021. Producer prices fell 0.5% in April, the deepest monthly drop since 2020, driven by declining service margins. Existing home sales dipped 0.5% in April, staying 2% below year-ago levels; median home prices rose 1.8% to $414,000. Mortgage applications fell 5.1% in mid-May as 30-year rates climbed to 6.92%, affecting both purchase and refinance activity. Moody’s downgraded the U.S. credit rating to Aa1 due to rising debt and interest costs, potentially tightening capital markets. The Conference Board’s Leading Economic Index fell 1% in April, its deepest drop in over a year. Weekly unemployment claims hit 227,000, though the four-week average is at its highest since late 2021. The labor market is holding, though signs of strain are emerging. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

Strong Operational Performance in 1st Quarter REITs Earnings Calls

2025-06-05T02:00:04-05:00

With U.S. apartment supply having peaked for this cycle and demand remaining resilient nationwide, both performance and investment activity experienced strong gains in 1st quarter 2025. Both Coastal and Sun Belt-focused REITs reported that 1st quarter financial and operational performance exceeded expectations, with persistent strong demand alongside favorable wage growth. Still, the Sun Belt region continues to recover from the recent supply wave, which has focused REIT investment strategies on operational improvements and competitive amenities. Conversely, Coastal REITs are aggressively expanding the magnitude of investment volume and development starts. REITs with primarily coastal portfolio allocations include AvalonBay Communities, Essex and Equity Residential, though both AvalonBay and Equity Residential are increasingly expanding into Sun Belt expansion markets like Dallas, Austin, and Atlanta. REITs including Camden Property Trust, MAA and UDR primarily focus on Sun Belt markets, although UDR also operates in several coastal markets. Improved Fundamentals Across Most Portfolios, Driven by Operational Performance AvalonBay Communities reported that 1st quarter 2025 “same-store revenue was slightly ahead of plan, with modestly higher occupancy and lower inventory to lease compared to the prior year. April occupancy was roughly 30 basis points (bps) higher than the same period last year.” Essex Property Trust also reported that the company's 1st quarter 2025 performance exceeded expectations, led by “stronger same-property revenue growth, higher co-investment portfolio NOI and favorable interest expense.” Management reported 2.8% blended net effective rent growth alongside a significant improvement in delinquency rates, particularly in Los Angeles, which dropped to 1.3% of scheduled rent from 3.9% a year ago. Northern California led new lease rate growth at 1.5%, followed by Seattle at 1.3%. Southern California trailed with 0.2% grow...

Multifamily Starts Rise One Quarter Year-Over-Year

2026-03-04T06:53:01-06:00

The seasonally adjusted annual rate (SAAR) for multifamily starts increased for the third consecutive month (second consecutive month for the not seasonally adjusted annual rate), according to the latest report from the U.S. Census Bureau and the Department of Housing and Urban Development (HUD). April’s SAAR of 420,000 multifamily units was 11.1% greater than the annualized rate in March and 28.8% higher than one year ago. Month-over-month, annualized starts increased an average of 8% from December and 2.6% since January for not seasonally adjusted starts. Meanwhile, April’s SAAR for multifamily permitting decreased 4.4% from March to 431,000 units, but that was 2.6% greater than last year. The annualized rate for multifamily permitting appears to have leveled off, averaging 433,000 units for the past 12 months and almost matching the current rate. Despite the increase in starts in the first few months of 2025, the SAAR for multifamily units under construction dipped 0.7% from last month and fell 20.2% from last year to 733,000 units. Multifamily completions were also flat with a 0.2% change from March and -1.7% decrease from last April to 507,000 units. Turning to single-family construction, the SAAR for single-family permitting fell 5.1% from March and 6.2% from last year to 922,000 units. Meanwhile, annualized single-family starts fell 2.1% for the month to 927,000 homes and were down 12% for the year. Single-family completions decreased 8% from February to 943,000 units, down 16.6% for the year, while single-family units under construction were down 0.8% from last month and 7.1% for the year to stand at 630,000 units. @include('site.elements.media.image', ['fileId' => 32797, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '406']]) Compared to one year ago, the annual rate for multifamily permitting decreased in the small Northeast region (down 22.5% to 61,000 units) and fell 12.6% in the South region (to 200,000 units). Permitting increa...

Renters Snapping Up Units at All-Time Highs in Augusta, GA

2025-05-27T02:00:03-05:00

Apartment demand hit an all-time high in the small Augusta, GA apartment market in the year-ending 1st quarter, pushing well ahead of concurrent supply volumes. Augusta joins a handful of other small apartment markets between 30,000 to 50,000 units of existing stock to hit an all-time absorption high in the early months of 2025, including Florida markets Myrtle Beach, Lakeland and Pensacola, as well as Trenton, NJ in the Northeast. Demand reached 1,351 units in Augusta in the year-ending 1st quarter, more than doubling the 675 units of supply delivering in the market in the same time period, according to data from RealPage Market Analytics. For comparison, over the past five years, annual demand has averaged closer to 600 units in this market. As a result of surging absorption volumes, occupancy in Augusta has rebounded, tightening 440 basis points in the past year to land at 95.3% in April, well ahead of the market’s long-term average.

Apartment Transactions Ease in 2025’s 1st Quarter

2026-03-04T06:53:01-06:00

U.S. apartment transactions eased during the first three months of 2025, following historical trends. However, on a year-over-year basis, apartment sales (total dollar volume, number of properties, number of units and price per unit) were up. There were some notable sales during 1st quarter, with five apartment communities trading for more than $180 million. @include('site.elements.media.image', ['fileId' => 32665, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '561']]) Roughly 1,277 apartment properties changed hands at a value of $30 billion during 1st quarter 2025, according to MSCI Real Capital Analytics. Overall sales volumes were up 36% year-over-year but were well below 4th quarter 2024 levels when around 1,848 properties changed hands for nearly $48.2 billion. In addition, recent activity was well below the $53.6 billion quarterly average over the past five years. The average price per unit remained high at $211,356 in 1st quarter, registering above $200,000 for 13 of the past 15 consecutive quarters. Prior to 2021, the per unit pricing never exceeded that threshold and averaged $151,000 from 2015 to 2019. Meanwhile, cap rates have been rising since reaching a pandemic-era low of 4.67% in 2nd quarter 2022. For apartment transactions occurring in 1st quarter 2025, cap rates averaged 5.65%, the highest in nearly nine years. Still, apartment cap rates during 1st quarter 2025 remained the lowest among major property types, keeping the asset class an attractive commercial real estate investment. @include('site.elements.media.image', ['fileId' => 32666, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) On an annual basis, transactions in the year-ending 1st quarter 2025 totaled nearly $157.7 billion with 6,078 properties trading hands. That total sales volume was up 36% from the previous 12-month period, while the number of properties sold was up 8%. Looking back over the past few years, sales dipped in calendar 2020...

Nation’s Fastest-Growing Large Counties are Mostly in Texas and Florida

2025-05-20T02:00:03-05:00

Among the nation’s largest counties, a handful – mostly in Texas and Florida – experienced substantial population growth in 2024. Recent estimates from the U.S. Census Bureau revealed that the population of the nation’s largest counties – the 621 counties with more than 100,000 residents – had an average population increase of 1.1% from July 2023 to July 2024. However, Texas and Florida counties primarily flooded the leaderboard. Out of the 12 large counties recording annual population growth of 4% or more, 11 were in the South region. Six were in Texas and four were in Florida. The Dallas/Fort Worth (D/FW) metropolitan statistical area (MSA) was well represented with four of the nation’s fastest-growing large counties. Kaufman County took the lead nationally at 6% growth. Other fast-growing large counties in D/FW included Hunt (#7 at 4.4%), plus Ellis and Rockwall (both at #9 tying with Lake in the Orlando MSA at 4.1%). The Houston MSA had two fast-growing large counties, Liberty (#3 at 5.4%) and Montgomery (#4 at 4.8%). The Orlando MSA also had two fast-growing counties, Osceola (#5 at 4.7%) and Lake (#9 tying with Ellis and Rockwall in the D/FW MSA at 4.1%). Two other counties in Florida ranked among nation’s fastest-growing large counties. St. Johns in the Jacksonville MSA ranked #8 with a population increase of 4.2% and Marion in the Ocala area ranked #12 with its population rising 4%. Outside of Texas and Florida, North Carolina’s Brunswick was the nation’s sixth fastest-growing large county, with its population increasing 4.5% from 2023 to 2024. The only county in the top 12 outside of the South region was Pinal County in Arizona, part of the Phoenix MSA. That county placed #2 on this list, with its population rising 5.6%.

Suburban Apartment Inventory Growth Nearly Doubles This Cycle

2026-03-04T06:53:01-06:00

Prior to this development cycle, it was typical for a metro area’s urban submarkets – including the Central Business District – to receive more supply than suburban counterparts. But not this cycle. Since roughly 2020, development in urban submarkets has trended below average while development in suburban submarkets has trended above average. @include('site.elements.media.image', ['fileId' => 32664, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Historically speaking, urban areas have been at the forefront of new development projects with an average annual inventory growth rate surpassing 4% since 2015. After experiencing a slight dip during 2021 and 2022, supply levels surged back to achieve a current growth rate of approximately 4% annually, mirroring trends from the late 2010s. What stands out is how substantially suburban supply has increased over these past two years. Suburban inventory growth has traditionally averaged below 2% per year but that pace has almost doubled since early 2023. Demand, meanwhile, has recovered in urban areas after significant challenges throughout the early pandemic period. In 2020 and 2021, urban cores faced some of the strongest absorption headwinds due to out-migration as these areas saw some of the most robust lockdowns. Over the last couple quarters, however, the difference in occupancy between urban and suburban regions has narrowed pretty significantly and actually has remained below the pre-pandemic average for the last couple years. @include('site.elements.media.image', ['fileId' => 32663, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) This indicates that urban demand has recovered from those net-move outs seen over the last few years. Although that’s not to say that absorption hasn’t been exceptional in suburban submarkets as well.

Big Supply Holds Rents Down Across Texas Apartment Markets

2025-05-26T02:00:03-05:00

Despite staggering absorption volumes, massive amounts of supply in Texas apartment markets have held pricing power down in the year-ending 1st quarter. The Lone Star State added 115,000 new apartments in the past year, accounting for 18% of the national total. Texas also captured robust apartment demand, leading the nation in total units absorbed in the past year. But even strong demand couldn’t keep up with surging supply, leaving Texas occupancy rates below historic norms. As a result, Texas saw the nation’s deepest rent dive, with prices falling 2.4% in the year-ending 1st quarter. Annual rent declines were also notable in the Desert/Mountains region (-2%) as well as in Florida (-1.8%), the Carolinas (-1.5%) and the Southeast (-1.3%). Alternatively, the Midwest, Mid-Atlantic and Northeast markets, which have seen relatively low to normal supply levels in recent years, continue to see rents increase at a slow and steady pace between 2% and 3% annually. For more information on apartment markets across Texas, including forecasts, watch the webcast Market Intelligence: Q2 Texas Update.

Rent Growth Evident in Markets Past Peak Supply Volumes

2026-03-04T06:53:01-06:00

Among apartment markets that have surpassed peak supply volumes for the cycle, two combined factors illustrate the market’s current rent performance. Those factors are 1) when the market hit peak supply and 2) how high the supply wave was at the summit. Markets with Early, Modest Peaks Return to Sizable Rent Growth Among the nation’s largest 50 apartment markets, nine hit annual supply peaks at least two years ago, in 2020 through 2023, according to data from RealPage Market Analytics. Among those markets, five saw more modest inventory growth of 2.5% or below at their summit, including San Francisco, Baltimore, Chicago, Boston and Oakland. Among these markets with early and soft peaks, most have seen moderate rent growth return as of April 2025, with price increases ranking ahead of the U.S. average of 1%. @include('site.elements.media.image', ['fileId' => 32603, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '594']]) Chicago saw supply volumes peak first, in the first half of 2020, and the peak there was modest at 1.6%. With ample time to fill up units, and a modest number of units to fill at its peak, Chicago was the nation’s rent growth leader as of April 2025, with an annual increase of 5.4%. In other words, the earliest market to reach (moderate) peak supply is recording the nation’s highest rent growth about five years later. Baltimore and Boston were the next to peak, in the second half of 2020, and rent growth was solid at around 2% to 3% in those markets as of April. Oakland was the only market to see an early low-ratio supply peak that is still seeing annual rent growth behind U.S. norms, at 0.7% in April 2025. Markets with Early, Sizable Peaks Divided by Region Markets that saw supply peak in 2020 through 2023, with inventory growth of more than 3% at the summit, include Kansas City, Portland, Richmond and Salt Lake City. West region markets Portland and Salt Lake City are still working through those supply volumes, as evidenced...

RealPage Economy Express Episode 47

2025-05-23T02:00:03-05:00

Episode 47: Some economic factors show resilience, while others indicate growing uncertainty. Pending home sales rose 6.1% in March, led by the South and the Midwest. Mortgage rates dropped to an average of 6.65%, supporting stronger home buying activity. Home prices climbed 3.9% year-over-year in February, with New York leading at 7.7%. Construction spending dipped 0.5% month-over-month but remains 3% above last year. Consumer confidence fell sharply in April to 86, with expectations at their lowest since 2011. GDP contracted 0.3% in 1st quarter, reversing the 2.4% growth in 4th quarter, amid rising imports and falling government spending. Personal income increased 0.5% in March, while consumer spending grew 0.7%. Inflation remained subdued, with core PCE up 2.6% year-over-year. April payrolls rose by 177,000 jobs, driven by health care, transportation and finance. The U.S. Unemployment rate held steady at 4.2%, while weekly jobless claims ticked down to 228,000 in early May. The Federal Reserve kept interest rates unchanged, signaling uncertainty ahead due to potential inflationary pressures from tariffs. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

Property Managers Prioritize Occupancy Over Rent to Start 2nd Quarter

2026-03-04T06:53:01-06:00

The U.S. apartment market kicked off 2nd quarter 2025 with solid occupancy gains, reinforcing momentum heading into the peak leasing season. National occupancy increased 0.4% in April to register at 95.7%, according to RealPage Market Analytics. This noticeable jump from last April’s 0.1% increase signals that renters have remained active despite broader economic uncertainties. While absorption patterns are strong, the pace of leasing suggests some demand may be pulled forward from later in the year, as renters and property managers weigh inflationary risks and tariff pressures. Occupancy Strengthened Across All Regions and Markets Across major regions, the Midwest led the way for monthly occupancy gains, climbing 0.6% in April, followed by the South, West and Northeast, each posting 0.4% gains. The Midwest’s above-average improvement underscores steady demand in metros benefiting from stable economic conditions and relatively affordable rents. Meanwhile, the South continues adjusting to aggressive inventory growth. The West is showing signs of stabilization. Large Northeast markets continue to post solid leasing strength. One of the most notable trends in April was broad-based leasing strength, with all 50 of the largest markets posting occupancy gains. Among those, certain markets stood out. Charlotte, Denver, Raleigh, Nashville, San Antonio, Austin and Salt Lake City each posted a jump of 0.5% or more, reinforcing the idea that high supply metros are seeing strong absorption rates amid elevated supply volumes. @include('site.elements.media.image', ['fileId' => 32557, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '869']]) Meanwhile, Florida’s positioning remains a key story as well. Of the markets with the lowest occupancy gains in April, four were in the Sunshine State, suggesting that recent supply volumes continue to pose a challenge for Florida operators. Tampa (+0.3%) and Fort Lauderdale (+0.3%) maintained resilience, but Miami (+0.1%...

Operators Appear to Buy Occupancy as Rent Growth Slows in April

2026-03-04T06:53:00-06:00

In a strong start to the prime leasing season, U.S. apartment occupancy surged in April. At the same time, rent growth, which had displayed modest momentum in recent months, backtracked slightly. Combined, these two fundamentals likely indicate that operators in the U.S. apartment market are focused on filling vacant units quickly amid economic uncertainty and a competitive leasing environment at the beginning of prime leasing season. U.S. apartment occupancy registered at 95.7% in April after climbing 40 basis points (bps) month-over-month to mark the strongest monthly boost in an April reading since 2010, according to data from RealPage Market Analytics. April generally marks the start of prime leasing season, though typical seasonality has been disrupted in recent years. Apartment occupancy now stands above historical norms at the national level and across all regions. As of 1st quarter, most major markets still posted occupancy below historical norms. @include('site.elements.media.image', ['fileId' => 32543, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Effective rents grew 0.2% in April, the softest showing in four months, toning down annual rent growth to 1.0% after slightly higher readings in March. The high-supply South continued to be the only region cutting rents on an annual basis (-0.5%), while the West posted near negligible growth (0.5%). The Midwest (3.6%) and Northeast (3.3%) again posted the strongest rent growth among regions in the year-ending April 2025. @include('site.elements.media.image', ['fileId' => 32544, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '1233']]) Supporting the idea that operators are focused on occupancy, some of the markets that have been seeing the deepest rent cuts posted the most notable occupancy bumps in April. Charlotte and Nashville, which are seeing rent cuts marketwide, recorded the strongest occupancy gains among major markets (+80 bps MoM). Several other high s...

Operators Appear to Buy Occupancy as Rent Growth Slows in April

2026-03-04T06:53:00-06:00

U.S. Labor Market Remains Resilient in April Amid Economic Uncertainty

2025-05-16T02:00:04-05:00

The U.S. labor market remained resilient in April despite the economic uncertainty caused by the Trump administration’s trade policies. Employers added a surprisingly strong 177,000 workers to payrolls in April 2025, according to a survey of businesses by the Bureau of Labor Statistics. Those additions were down modestly from the 185,000 jobs added in March but were well above the roughly 135,000 job gains expected by economists. However, job gains from February and March were revised down by 15,000 and 43,000, respectively, equating to 58,000 fewer positions added than previously reported. The Education/Health Services sector (+70,000 jobs) added the most jobs in April. Manufacturing and Other Servies were the only major industries to lose jobs, though the loss was modest at 1,000 jobs. The Government sector overall gained 10,000 jobs during the month. However, the Federal Government segment was down 9,000 jobs in April, with a net loss of 26,000 jobs since January, largely driven by the Department of Government Efficiency initiatives. Meanwhile, the unemployment rate (U3 or headline unemployment rate, which is seasonally adjusted, and is a survey of households) has remained in the narrow range of 4% to 4.2% over the past 12 months and was unchanged from March to April at 4.2%. This post is part of a series analyzing employment data from the Bureau of Labor Statistics. For more on this data, read previous posts on Job Growth.

Population Growth Buoys Apartment Occupancy in Smaller Markets

2026-03-04T06:53:00-06:00

Smaller markets have seen big gains in population since the start of the COVID-19 pandemic. At the same time, these markets have posted apartment occupancy rates above their larger market peers, in a general reversal of historic trends. Population gains were significant in 2021 and 2022 in markets with less than one million residents, according to U.S. Census Bureau data tabulated by the Joint Center for Housing Studies of Harvard University. Meanwhile, the urban areas of larger markets with at least one million residents saw deep population declines in that same time period. @include('site.elements.media.image', ['fileId' => 32437, 'attributes' => ['border' => '0', 'width' => '1280', 'height' => '839']]) Apartment occupancy in these smaller markets also increased notably during that time frame, at least partially inspired by resident gains. This goes against typical historical patterns, which show the nation’s largest 50 apartment markets ranking ahead of smaller metros for occupancy. @include('site.elements.media.image', ['fileId' => 32438, 'attributes' => ['border' => '0', 'width' => '1280', 'height' => '839']]) Occupancy rates among the nation’s largest 50 apartment markets averaged at 95.4% in March 2025. These are markets with an existing apartment inventory of around 110,000 units or more. Secondary markets – with about 25,000 units to 100,000 units – were 95.5% occupied, while tertiary markets, with less than 25,000 units, were tightest, with occupancy at 95.9%. In the five years leading up to the pandemic, that pattern was reversed. Occupancy in the biggest 50 apartment markets averaged at 95.4% (the same as it was in March 2025). In secondary markets, occupancy was a bit lower at 95.1% in the 2015 through 2019 time frame. And tertiary markets logged the lowest occupancy reading at 94.6%. After most markets nationwide saw fluctuations, with occupancy rates peaking in 2022 before diving again in 2023, smaller markets have come out ahead in the years s...

U.S. Apartment Market Sees Strong Leasing Momentum

2026-03-04T06:53:00-06:00

The U.S. apartment market saw strong momentum in new lease trade-out in the first three months of 2025. The month-over-month change in new lease trade-out ranked consistently around 1.4% in January, Febraury and March. While this time frame historically is a strong one for the U.S. apartment market, early 2025’s momentum was the strongest in at least three years. @include('site.elements.media.image', ['fileId' => 32384, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) However, recent upturns haven’t pulled overall trade-out back into positive territory just yet. March’s trade-out rate for new leases was right at 0%, which means new leases signed in March had executed rents roughly equal to what the prior tenant was paying for the same unit. Recent upturns have made for a different trend than what we were seeing less than six months ago, though. In November 2024, trade-outs were leasing for 4% less than the previous resident. Historically, that was a significant decline. And the turnaround seen in more recent months was truly impressive in compaarison. For pricing overall, 1st quarter also saw improvement. When looking at the change in effective asking rents between 4th quarter and 1st quarter, 2023 and 2024 showed a pattern of loss. But in 1st quarter 2025, the perforamnce strengthened, as rents were up by 34 basis points (bps) over 4th quarter 2024 prices. @include('site.elements.media.image', ['fileId' => 32383, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Historically speaking, that change was still below the perfomance from much of the 2010s decade, which averaged accelleration of around 60 bps, but at least it is a demonstration of strength in the market overall. For more information on the state of the U.S. apartment market, including forecasts, watch the webcast Market Intelligence: Q2 U.S. Update.

Calendar 2025 Rent Growth Forecast by Market

2025-05-09T02:00:04-05:00

Effective asking rents are forecasted to grow at an average annual rate of about 2.3% nationwide in calendar 2025. Among the nation’s largest 50 apartment markets, those set to see rent growth of 3.4% or more include South region markets Richmond and West Palm Beach, Kansas City in the Midwest, Northeast markets Boston, Philadelphia and Pittsburgh and San Jose in the West. The biggest bucket of markets – 34% of the top 50 – are scheduled to see growth of around 2.6% to 3.2% in the coming year, according to data from RealPage Market Analytics. Included in this list are some of the large markets in the Midwest, which have experienced steady performances of late. Expected to rank below average rent change in 2025 are most of the nation’s Gateway markets and four of the big Texas metros. Washington, DC is included in this category, after being downgraded in the RealPage forecast due to ongoing federal job cuts which are expected to weigh on the local economy in 2025. Only three of the nation’s largest apartment markets are forecasted to see rent cuts by the end of this year, including Austin, Denver and Phoenix. These are areas that have been working to absorb big supply volumes recently, which have impacted occupancy rates.

Top Multifamily Markets Among Top 10 for Single-Family Permitting

2026-03-04T06:53:00-06:00

Six of the top 10 markets for multifamily permitting in the year-ending March are also among the top 10 markets for single-family permitting, according to the latest data from the U.S. Census Bureau. These markets have consistently been among the nation’s leaders for total housing demand. Not surprisingly, all of the top single-family permitting markets are in the Sun Belt with the usual suspects Houston, Dallas, Austin and Phoenix. Southeast markets Atlanta, Charlotte, Raleigh/Durham, Orlando and Nashville were joined by North Port-Sarasota-Bradenton, FL to round out the top 10 single-family permitting list in March. The list of top 10 multifamily permitting markets is more geographically diverse, with New York continuing to lead the nation, followed by the six Sun Belt markets on the single-family list. Along with Washington, DC, the first eight top 10 multifamily permitting markets returned from February’s list. Miami and Columbus, OH replaced Tampa and Los Angeles on the top 10 list for March. @include('site.elements.media.image', ['fileId' => 32379, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) New York and Columbus were the only top multifamily permitting markets to see an increase in both multifamily and single-family permitting compared to one year ago. Seven top multifamily markets had fewer units permitted in the year-ending March from last year, but four of those permitted more single-family homes than last year. Interestingly, three markets – New York, Miami and Columbus – permitted more multifamily units than single-family homes in the past year. Perhaps as an indication that multifamily permitting is beginning to turn around, only four of the top 10 multifamily markets permitted fewer units for the year than one month ago, compared to the aforementioned seven markets with year-over-year declines. Additionally, the sum of multifamily units permitted for the top 10 in March of 130,310 is slightly higher than the sum for t...

RealPage Economy Express Episode 46

2025-05-08T02:00:03-05:00

Episode 46: Consumers are anxious about inflation, trade policies and jobs, alongside higher unemployment expectations. Consumer prices dipped 0.1% in March, driven by a 6.3% drop in gas prices, according to the Bureau of Labor Statistics. Over the past year, prices rose 2.4%, down from 2.8% in February. Food prices climbed 0.4% month-over-month, with eggs jumping nearly 6%. Core inflation rose 0.1% in March and 2.8% over the year. That was the smallest gain since 2021. The Producer Price Index dropped 0.4% in March, with gasoline falling 11%. Steel mill production increased over 7%, and residential electric power costs climbed. Wholesale prices rose 2.7% over the past year. University of Michigan’s Consumer Sentiment Index fell to 50.8 in April, down 11% from March. The Federal Reserve announced a pause, citing tariffs' impact on prices and the job market. Building permits rose slightly in March, but housing starts fell by over 11%. Housing completions edged down 2% yet were up almost 4% year-over-year. Mortgage applications dropped 12.7% in mid-April as rates climbed to 6.9%. Refinance activity fell 20%, while purchase applications were down 7% week-over-week but up slightly year-over-year. The Conference Board’s Leading Economic Index dropped 0.7% in March, signaling slower growth ahead. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

Job Creation Still Pushes Apartment Demand in Some Markets

2026-03-04T06:53:00-06:00

While the correlation between job gains and apartment demand or rent growth has certainly weakened in the past several years, there is still some merit to the belief that job creation leads to more housing demand. RealPage’s list of top 20 markets for annual apartment absorption or demand in the year-ending 1st quarter 2025 includes all of the top 10 markets for job creation according to March’s data release from the Bureau of Labor Statistics. @include('site.elements.media.image', ['fileId' => 32336, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) The top three markets for job gains – New York, Dallas and Houston – appear as the top three for demand as well. However, after the first three, only Washington, DC appears in the top 10 for both lists, with the remaining six top job creators appearing somewhere among the #11 to #20 for annual absorption, perhaps indicating that weakening relationship. The work from anywhere trend and industry makeup of new jobs could be dampening the formerly strong relationship between jobs and housing demand in many markets. Turning just to job creation, nine of last month’s top 10 markets returned to the list in March with New York again on top and Dallas replacing Houston at #2. Both New York and Houston saw a decrease in annual employment gains in March from February’s total, but Dallas increased by almost 5,000 jobs. Orlando returned in the #4 spot, gaining 30,100 jobs for the year, almost even with their total last month. Washington, DC jumped from #9 in February to #5 in March but improved by only 1,800 jobs. Charlotte moved up one spot to #6 and saw a similar increase in employment gains as DC. Philadelphia slipped to #7, just ahead of returning #8 Miami, but both experienced smaller total job gains for the year compared to last month. San Antonio and Raleigh/Durham rounded out the top 10 with gains of about 20,300 each. Raleigh/Durham replaced Chicago on this month’s top 10 list as the Windy City...

Apartment Demand in Southeast Markets Swells Ahead of Fading Supply Volumes

2026-03-04T06:53:00-06:00

Apartment demand in the Southeast region of the U.S. surged to a record high in 1st quarter. At the same time, construction volumes are declining in the region. Markets across the Southeast region of the county, including Atlanta, Nashville and Memphis, have seen apartment demand gain traction rapidly in the past few years. In the year-ending 1st quarter 2025, absorption hit an apex of 56,000 units, according to data from RealPage Market Analytics. This was a new all-time high for the region. @include('site.elements.media.image', ['fileId' => 32292, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) To put those numbers into perspective, Southeast apartment demand in 2025 alone matched the combined total absorption tally from 2021 through 2023. Demand across the region started surging in 2021, like it did in most of the U.S., after the pandemic decline in 2020. In early 2022, annual demand crossed the threshold of 40,000 units, marking a high point for the Southeast. Then, in 2022, apartment demand in the Southeast started to cool, and net move-outs became the norm by late that year. Demand quickly turned around, hitting positive territory again by the end of 2023, but annual absorption landed at just 24,000 units, a little more than half the region’s previous peak. But in 2024, the Southeast really shined, with apartment demand crossing the 40,000-unit mark again by 3rd quarter. That surge continued into the early months of 2025. Supply in the Southeast wasn’t far behind rising demand tallies. Roughly 50,000 new multifamily units were delivered in calendar 2024, which was a 22% increase over 2023’s already record-breaking completion pace. However, annual deliveries started to dip a bit in early 2025 and are scheduled to decline further during the rest of the year and into 2026. Looking further out, multifamily permits – a leading indicator of future supply – have been declining since the peaks of 2023. In calendar 2024, across the sev...

Eight Submarkets in the Nation’s Largest Apartment Markets Have Rents Below $1,000

2025-04-29T02:00:03-05:00

Some of the places with the lowest rents in market-rate, professionally managed apartments are in the South and Midwest. It’s no coincidence that the lowest price submarkets are in the nation’s lowest price markets. Of the 50 largest apartment markets in the U.S., 11 had average effective asking rents below $1,400 per month as of March. But in a few submarkets, specifically, rents were well below that level. Of the 706 submarkets within the 50 largest markets, eight had average monthly rents under $1,000 and only one had rents below $900, according to RealPage Market Analytics. At $839 per month, Cleveland’s Euclid submarket claimed the lowest rents nationally, followed by Northeast St. Louis County with rents of $907. Three of Memphis’ eight submarkets took the next three spots: South Memphis at $938, West Memphis at $949 and North Memphis at $969. Two submarkets in the Houston area had rents below $1,000: Sharpstown/Fondren Southwest at $982 and North Central Houston at $997. And the West San Antonio submarket had average monthly rents of $983 as of March. For comparison, at the opposite end of the spectrum, eight of New York’s 10 submarkets commanded the nation’s highest monthly rents nationally, with the Lower East Side topping the list at $6,213 a month.

Eight Submarkets in the Nation’s Largest Apartment Markets Have Rents Below $1,000

2025-04-29T02:00:03-05:00

U.S. Quarterly Apartment Supply Past its Peak and Falling Fast

2026-03-04T06:53:00-06:00

The U.S. apartment market continued its supply streak in 1st quarter 2025, hitting eight quarters of record completions. However, it’s clear the tide has turned, as the pullback from the final few months of 2024 was considerable. Quarterly completion volumes broke past the 100,000-unit mark in 2nd quarter 2023 for the first time since RealPage Market Analytics began tracking the U.S. apartment market in the 1990s. Delivery totals then increased for five straight quarters, peaking in 3rd quarter 2024 before ebbing slightly in the last three months of 2024. The drop in 1st quarter 2025, though, was more demonstrative. @include('site.elements.media.image', ['fileId' => 32222, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) The U.S. completed nearly 116,100 units in the first three months of 2025. That was well behind 3rd quarter 2024 (159,000 units) and 4th quarter 2024 (153,000 units), but still a bit ahead of the 100,000-unit mark record. After two consecutive quarters of falling completion volumes, it’s clear the U.S. is past its historic peak. Every region of the U.S. saw supply volumes fall in 1st quarter, coming down from recent peaks. New apartment deliveries continued to be most prolific in the South region of the U.S., as nearly 64,700 units wrapped up there in early 2025. The South also saw the most notable pullback, delivering roughly 22,700 units less in the first three months of 2025 than in the last three months of 2024 and even fewer than the peak achieved in 3rd quarter 2024. @include('site.elements.media.image', ['fileId' => 32223, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) The West saw nearly 28,200 units delivered in 1st quarter, which was about 7,600 units fewer than came online in the region in 4th quarter. This region also peaked in 3rd quarter 2024, and recent totals are well behind that mark. More mild deliveries were seen in the Midwest (12,300 units) and Northeast (11,000 units)...

Most Apartment Markets Still Below Pre-Pandemic Occupancy

2026-03-04T06:53:00-06:00

While occupancy has firmed up considerably over the last year amid strong demand nationally, most major markets still posted occupancy rates below that of their pre-pandemic long-term norms as of 1st quarter 2025. The U.S. recorded 1st quarter occupancy of 95%, according to data from RealPage Market Analytics. That rate ran slightly below the pre-COVID five-year average from 2015 to 2019 of 95.2%. Of the nation’s 50 largest apartment markets, about 60% (29 markets) posted 1st quarter occupancy below pre-COVID rates. @include('site.elements.media.image', ['fileId' => 32133, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) This deviation from the pre-pandemic norm varied widely across geographies. Generally, lower supplied markets have seen occupancy firm up over the recent past. Conversely, higher supplied Sun Belt markets have mostly posted occupancy weaker than their pre-pandemic norms. Most severely, Fort Worth (-200 basis points), Austin (-170 bps), Charlotte, Orlando and Nashville (all -150 bps) posted 1st quarter occupancy rates well below their averages from 2015 to 2019. @include('site.elements.media.image', ['fileId' => 32118, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Similarly, in the West region, most major markets posted occupancy below that of their pre-COVID norms. The only major West markets to post above average occupancy in 1st quarter were San Francisco (+80 bps), Anaheim/Orange County (+30 bps), Las Vegas (+30 bps) and San Jose (+20 bps). On the other hand, Salt Lake City and Phoenix are still more than 100 bps below their pre-pandemic occupancy norms. @include('site.elements.media.image', ['fileId' => 32120, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Across the more moderately supplied Midwest markets, occupancy is faring better compared to long-term norms. About 60% of the region’s major markets posted 1st quarter occupancy above average. Indianapolis p...

Markets Yet to Hit Peak Apartment Supply

2025-04-28T02:00:03-05:00

While apartment supply has peaked nationally, some local markets have not yet hit their own pinnacle. For the most part, the larger construction markets have peaked. Houston supply hit an apex in mid-2024, while Dallas, Austin and Phoenix are scheduled to see supply volumes peak this quarter. But some markets with lower supply waves – generally speaking – have yet to peak. Out of the nation’s largest 50 apartment markets, 13 are set to hit their highest supply volumes in the back half of 2025 or beyond, according to data from RealPage Market Analytics. For the most part, these deliveries are set to increase existing unit counts in these markets by around 2% or lower, which registers below the national norm. Markets scheduled to see supply peaks by 3rd quarter 2025 include Boston, Detroit, Fort Lauderdale, Kansas City and Memphis. Peaks are expected in Ohio markets Cleaveland and Columbus and also New York in the last few months of 2025, while Newark should follow closely with a peak in early 2026. High points are also expected in calendar 2026 in a handful of California markets and in Greensboro.

Economic Uncertainty Grows, But Demand Prevails

2026-03-04T06:53:00-06:00

Despite softer economic fundamentals, multifamily demand remains strong. Over 138,000 apartment units were absorbed in 1st quarter 2025, a record high for the first three months of the year. Atlanta led all major markets in 1st quarter absorption, followed by Phoenix and Dallas. Anaheim was the only major market to record net move-outs during the quarter. Looking ahead, RealPage is forecasting the absorption of nearly 460,000 units in calendar 2025. @include('site.elements.media.image', ['fileId' => 32104, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '542']]) On the supply side, 1st quarter reinforced the trend that new deliveries have passed their peak. Roughly 116,000 units came online in 1st quarter, and we expect about 431,000 for all of 2025 – down about 26% from 2024’s total. @include('site.elements.media.image', ['fileId' => 32103, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Rent growth gained momentum in early 2025, buoyed by 0.3% growth during 1st quarter specifically. Notably, this marked the first quarterly rent growth during a 1st quarter period since 2022. Among the top 50 markets, 26 outperformed the national average annual rent increase in 1st quarter 2025. Looking ahead, RealPage is forecasting national effective asking rent growth of approximately 2.3% for 2025. Among the top 50 markets, 32% are expected to see rents rise from 3.0% to 3.9% during the year, while the largest share – about 40% – are forecasted to see growth of 2.0% to 2.9%. Another 16% of markets will see more moderate gains of 1.5% to 1.9%, while 6% are expected to see minimal growth of around 0.5%. The remaining 6% of markets – Austin, Denver and Phoenix – are projected to experience rent cuts this year, though to a much lesser extent than in 2024. Richmond is expected to lead the nation with the highest rent growth in 2025. Meanwhile, despite a solid performance in 1st quarter 2025, Washington, DC has been downgraded in the Rea...

How Inflation Reshapes Apartment Demand

2026-03-04T06:53:00-06:00

Economic uncertainty has become a defining force in today’s housing landscape, with tariffs amplifying inflationary pressures and reshaping renter behavior. Beyond the well-documented supply-side challenges affecting construction costs and development timelines, the broader impact of tariffs extends into consumer sentiment and financial decision-making – delaying housing moves, squeezing budgets and altering long-term demand patterns. Understanding these shifts is critical for anticipating market trends and adjusting strategies to navigate the evolving rental landscape. @include('site.elements.media.image', ['fileId' => 32023, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Consumer sentiment has fallen sharply in recent months, coinciding with inflation expectations that continue to climb. This volatile combination creates an environment where major housing decisions are postponed in favor of financial stability. Tariffs contribute to price increases across a wide range of goods, affecting renter’s disposable income and weakening purchasing power. Luxury rental markets are particularly vulnerable, as rising costs for essentials push renters toward more affordable alternatives. Apartment lead volume in has already declined for three consecutive quarters, reflecting shifting preferences among high-end renters.Beyond rental choices, inflationary pressures extend to major purchases such as vehicles and furniture, further tightening monthly budgets. As financial constraints grow, renters are forced to make difficult trade-offs, often prioritizing essential expenses over discretionary spending. Housing frequently bears the burden, leading to an increase in roommate households as individuals seek to distribute rising costs across multiple sources of income.Tariff-related uncertainty may also dampen household formation, particularly among young adults. Gen Z renters, already often grappling with student loan debt and affordability challenges, no...

Easing Apartment Supply in Minneapolis Should Boost Occupancy

2025-04-23T02:00:03-05:00

Apartment construction activity is on the decline in the Minneapolis-St. Paul-Bloomington apartment market, which should allow for apartment occupancy to recover in the near term. Annual supply levels have been trending down in Minneapolis since reaching a peak of 11,804 units in early 2024, a 3.2% inventory boost, according to data from RealPage Market Analytics. Most recently, a much smaller volume of 7,438 units came online in the market during the year-ending 1st quarter 2025, growing the existing unit base 2.2%. That represented a year-over-year decline in deliveries of 37%, the second-deepest drop among the nation’s 50 largest markets, besting only St. Louis (-49.6%). New supply in the Twin Cities is expected to continue its downward trend in the near term. In 2026, the market is expecting the delivery of 2,540 units, expanding inventory just 0.7%. That would be one of the lowest growth paces among the nation’s 50 largest apartment markets. Heavy supply volumes over much of the past two years have kept occupancy in Minneapolis below historical norms. From 2015 to 2019, occupancy averaged 96.9%, while the 1st quarter 2025 rate registered at 95%. With supply trending down, occupancy should return closer to historical norms in the near term.

Eight Large Submarkets with Inventory Growth of More Than 50%

2026-03-04T06:53:00-06:00

Eight large submarkets nationwide have seen their existing apartment count increase by 50% or more in the past five years. Among the nation’s largest 150 apartment markets, there are 996 submarkets. Among those submarkets, 36 saw their existing inventory count increase by more than 50% in the past five years, according to data from RealPage Market Analytics. While smaller submarkets tend to see bigger percentage growth rates given their relative size, there were eight submarkets with an existing unit count of more than 30,000 units as of early 2025 that grew their inventories by more than half since early 2020. For reference, these submarkets have more apartment stock than 27 markets among the nation’s largest 150. The largest of those markets is Sioux Falls, SD, with stock of 30,000 units in 1st quarter 2025, while the smallest is Fort Collins, CO, which has a total existing stock of about 24,400 units. @include('site.elements.media.image', ['fileId' => 32025, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '625']]) Phoenix’s western suburban Avondale/Goodyear/West Glendale was the nation’s fastest growing submarket, with an existing product base that swelled by 116.7% between early 2020 and early 2025. In comparison, the U.S. overall saw its apartment inventory increase by 11.3% during that time frame, while Phoenix itself saw average growth of 21.5%. Avondale, Goodyear and the western portion of Glendale are all located within Maricopa County, which was one of the fastest growing counties nationwide between 2020 and 2024. According to the latest estimates from the U.S. Census Bureau, Maricopa County added nearly 227,700 new residents in that time frame. This was the second biggest increase, following only Harris County in Houston. It’s no surprise that five of the eight submarkets on this list are in Texas. Two – East Austin and Dallas’ Frisco – appeared on our list of Texas submarkets with explosive growth in the past decade. But three of t...

RealPage Economy Express Episode 45

2025-04-18T02:00:03-05:00

Episode 45: Housing and construction show momentum in recent months, but consumer confidence is fading, inflation persists, and tariffs add uncertainty. Pending home sales rose 2% in February, according to the National Association of Realtors. Year-over-year signings were down 3.6%, illustrating soft demand. Home prices climbed 4.1% annually in January, led by New York, Chicago and Boston. February construction spending increased 0.7% month-over-month and nearly 3% year-over-year, reports the U.S. Census Bureau. Residential construction rose 1.3%, reaching an annual rate of $929 billion. Nonresidential and public projects also saw small increases. February job openings held steady at 7.6 million but were down 900,000 from last year. About 228,000 jobs were added in March, doubling February’s revised total. Unemployment ticked up to 4.2%, with more part-time workers and 5.9 million people wanting jobs but not actively looking. Personal income rose 0.8% in February, consumption increased 0.4%, and inflation grew 0.3% month-over-month and 2.5% year-over-year, according to the S&P CoreLogic Case-Shiller Index. The Conference Board Consumer Confidence Index dropped by 7.2 points in March to 92.9, with the Expectations Index hitting a 12-year low due to concerns about jobs, income and the economy. New tariffs imposed by President Trump are expected to raise costs on construction materials and goods. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

U.S. Apartment Supply Volumes Finally Peak

2026-03-04T06:53:00-06:00

While we are still firmly in the most prolific apartment building cycle in U.S. history, supply volumes have finally peaked. The first time apartment supply volumes hit a historic peak was back in 2nd quarter 2023, when quarterly completions surpassed 100,000 units for the first time since RealPage Market Analytics began monitoring the market in the early 1990s. Record quarterly deliveries pushed annual completions past the 400,000-unit mark for the first time in late 2023. Since that milestone, delivery totals have continued to rise, hitting another record every quarter until now. A little over 576,700 units were delivered in the year-ending 1st quarter 2025. That was slightly below the all-time peak of 585,200 units from calendar 2024. From this point on, delivery volumes are scheduled to drop off for the next few years as developers wrap up the current pipeline of projects. @include('site.elements.media.image', ['fileId' => 31973, 'attributes' => ['border' => '0', 'width' => '1280', 'height' => '761']]) Supply volumes pushing past their peak doesn’t mean the historic construction wave is over by any means. Annual supply is scheduled to drop to about 431,200 units by the end of 2025. After that, deliveries are expected to fall off even further, returning to more historic norms by 2026 if current construction timetables hold. @include('site.elements.media.image', ['fileId' => 31989, 'attributes' => ['border' => '0', 'width' => '1280', 'height' => '754']]) By 2027 and 2028, supply volumes should fall to levels below historic norms from the past decade. Of course, these numbers fluctuate due to new projects getting underway and inevitable supply delays. But current levels of multifamily permits and starts are trending downward, further indicating that the historic supply wave is past its peak. @include('site.elements.media.image', ['fileId' => 31974, 'attributes' => ['border' => '0', 'width' => '1280', 'height' => '786']]) Both permits and starts for multifa...

Despite a Boost in March Hiring, Annual Job Gains Remain Below Last Year’s Pace

2025-04-18T02:00:03-05:00

U.S. employers added twice the number of jobs in March than they did during the first two months of the year, but annual gains remain below last year’s pace and behind pre-pandemic norms. Employers added roughly 228,000 workers to payrolls in March 2025, according to a survey of businesses by the Bureau of Labor Statistics. Those additions were double the average of 114,000 jobs added in January and February and were well above the roughly 130,000 to 140,000 job gains expected by economists. The U.S. economy has now added jobs for 51 consecutive months, the second-longest period of job base expansion on record dating back to 1939, following the 113-month stretch that ended with the onset of the COVID-19 pandemic. The Education/Health Services sector (+77,000 jobs) added the most jobs in March, while Information and Mining/Logging were the only major industries to lose jobs (both down by 2,000 jobs). Despite the loss of 4,000 Federal Government jobs in March (which followed 11,000 job cuts in February), the Government sector overall gained 19,000 jobs during the month. However, federal employees who have been placed on paid leave or severance by the Trump administration were still counted as employed. On an annual basis, U.S. employers added roughly 1.88 million jobs or an average of nearly 157,000 jobs per month. That annual gain was down from the nearly 2.4 million jobs added a year earlier and registered below the pre-pandemic average of 2.4 million from 2015 to 2019. Meanwhile, the unemployment rate (U3 or headline unemployment rate, which is seasonally adjusted, and is a survey of households) rose from 4.1% in February to 4.2% in March. This post is part of a series analyzing employment data from the Bureau of Labor Statistics. For more on this data, read previous posts on Job Growth.

Orlando is Nation’s Fastest-Growing Large Metropolitan Area

2025-04-14T02:00:03-05:00

Recent estimates from the U.S. Census Bureau revealed that the population in the Orlando Metropolitan Statistical Area (MSA) grew 2.7% from 2023 to 2024. That increase surpassed the U.S. average growth pace of 1% and Florida's rate of 2%, making Orlando the fastest growing among MSAs with more than 1 million residents. The Orlando MSA added roughly 76,000 new residents between July 1, 2023 and July 1, 2024, becoming the 20th most populous MSA in the country with more than 2.9 million residents. All four counties within the Orlando MSA experienced population growth, with Osceola County (largest city is Kissimmee) growing 4.7%, while Lake County (largest city is Clermont) grew 4.1%, with both those counties ranking among the nation's 25 fastest growing and placed in the top 10 among U.S. counties with more than 100,000 residents. Orlando’s other two counties recorded population growth below the MSA pace, with Orange County (largest city is Orlando) growing 2.2% from 2023 to 2024, while Seminole County (largest city is Sanford) grew 1.1%. Simultaneously, these areas have been experiencing high apartment deliveries of late, with notable supply volumes delivering in the Kissimmee/Osceola County submarket.

Healthy 1st Quarter Demand Boosts Rent Growth as Supply Ebbs

2026-03-04T06:53:00-06:00

U.S. apartment demand registered well above average in 1st quarter 2025, which helped boost fundamentals back toward more normal readings. At the same time, the nation’s once-in-a-generation apartment supply wave ebbed slightly, indicating that the impacts of high supply will begin to pull back throughout the remainder of the year. In the January to March quarter, the U.S. absorbed over 138,000 market rate apartment units, marking the highest 1st quarter demand on record in the RealPage data set, which goes back over 30 years. Strong 1st quarter demand was coupled with robust readings from the last three quarters of 2024 to register at a record annual rate of nearly 708,000 units absorbed nationwide, according to data from RealPage Market Analytics. That annual rate registered essentially in line with absorption from the demand boom of early 2022. @include('site.elements.media.image', ['fileId' => 31919, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '1233']]) Demand registered above concurrent supply as the nation delivered nearly 577,000 apartment units in the year-ending 1st quarter. That rate marked the highest supply volume in 50+ years, outside of last quarter’s record high of about 589,000 units. In the coming quarter, the annual supply volume is forecasted to come down even more, further indicating that the supply wave has crested. Occupancy continued to tick up modestly throughout the early months of 2025 to stand at 95.2% in March. This was the highest reading seen since October 2022, but still essentially in line with long-term norms. @include('site.elements.media.image', ['fileId' => 31904, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) As supply and demand trended toward a more balanced relationship after several years of changeable readings, rent growth continued to build modest momentum. Effective rents grew 0.75% in March. In turn, effective rents grew 1.1% in the year-ending March 2025, which marked...

New Census Boundaries Change Employment Totals

2026-03-04T06:53:00-06:00

The New York metro division’s annual job gain total for January fell from 150,500 jobs to 119,300 jobs in February’s data release from the Bureau of Labor Statistics (BLS). Why the big change? The Office of Management and Budget changes the geographic delineations of the Census’ Core Based Statistical Areas (CBSAs) periodically and those changes sometimes are significant. Based on new boundaries, the renamed New York-Jersey City-White Plains metro division of the New York-Newark-Jersey City CBSA lost more than one million employees when the BLS adopted these new boundaries in March. However, these employees did not disappear. They are now included in a new metro division within the New York CBSA called Lakewood-New Brunswick, NJ that consists of the New Jersey counties of Middlesex, Monmouth, Ocean and Somerset, the first three of which were previously in the old New York-White Plains division. Note: These New Jersey counties have always been included in RealPage’s definition of the Newark apartment market (along with Bergen, Passaic and Hudson counties, et al.). Despite the lower employment base, the New York metro division still led the country for job gains once again. For the year-ending February, New York added 94,400 jobs, down from the January total as employment growth continues to slow across the country. @include('site.elements.media.image', ['fileId' => 31867, 'attributes' => ['border' => '0', 'width' => '873', 'height' => '542']]) Eight of last month’s top 10 markets returned to the list in February with New York, Houston and Dallas remaining in order. Houston’s annual gain slowed from January’s, but Dallas improved slightly. Orlando and Philadelphia returned to the #4 and #5 spots but changed places from last month with close to 30,000 jobs added apiece, while Chicago moved up two spots, adding almost 26,000 jobs for the year. Charlotte jumped onto this month’s top 10 list, and like Miami and Washington, DC, added close to 24,000 jobs through F...

Occupancy and Rents Expected to Grow in Desert/Mountains Region as Construction Wanes

2025-04-09T02:00:03-05:00

Apartment demand has been robust across the Desert/Mountains region in recent years, but heavy supply volumes have kept occupancy and rent growth below historical norms. With record supply volumes scheduled to fall in the near term, apartment performance could rebound. Before the pandemic, annual effective asking rents in the Desert/Mountains region increased at a steady rate of roughly 4% to 6% annually. In the past four years, however, volatility has been the trend, as pricing surged in 2021 and then dropped into negative territory in 2022. Rent cuts continued with a decline of 2.7% in calendar 2024, but that is expected to change moving forward. The scheduled slowdown in construction activity coupled with strong and sustained demand could set the stage for a return to positive rent growth in 2025. Occupancy rates in Desert/Mountains markets could also rebound, going from 94.2% at the end of 2024 to a forecasted rate of 94.5% at the end of 2026. However, challenges could persist for Class A properties in high-supply markets, which could need more time to balance out as propertied work through initial lease-up. For more information on the state of apartment markets in the Desert/Mountains region of the U.S., including forecasts, watch the webcast Market Intelligence: 2025 Q1 Desert & Mountain Region Update.

Nation’s Five Largest Build-to-Rent Projects in Lease-Up

2026-03-04T06:53:00-06:00

With homeownership costs sidelining many would-be buyers, migration shifts causing the need for more housing across many growing cities and the rise of lifestyle renters, demand for build-to-rent (BTR) homes has exploded. And developers are working to fill the need. Nearly 78,000 BTR units were under construction as of March, scheduled to complete by the end of 2027, according to RealPage Market Analytics. The South and West regions have proven to be development leaders in the BTR space, driven in part by demographic shifts, land availability and project feasibility. As of March, the South region again topped the BTR construction pipeline with 48,472 units underway. In a distant second, some 21,214 units were underway in the West. The Midwest and Northeast regions had considerably fewer BTR units underway at 5,958 units and 1,906 units, respectively, as of March. @include('site.elements.media.image', ['fileId' => 31828, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Meanwhile, roughly 70,000 BTR units have completed across the U.S. over the last 12 months, including many massive projects by unit count. The number of units in a BTR project varies greatly, as so much depends on land availability. Average unit size for BTR projects hovers below 150 units, though that varies across geographies. A small handful of newly completed projects in lease up as of March had more than 350 units. Here’s a look at the largest BTR projects that have completed in the last year, based on unit size. @include('site.elements.media.image', ['fileId' => 31829, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Mirella Mirella by Houston-based Caldwell Cos. is the largest BTR project completed in the last year nationwide, based on unit count. The 504-unit development within Houston’s Cypress/Waller submarket completed in March 2025. Advertised rents for this single-family rental community range from around $2,400 to $3,400. This BTR p...

High Supply Markets Pulling Back on Permitting

2026-03-04T06:53:00-06:00

As multifamily development slows nationwide, four markets among the top 10 for total multifamily units under construction at the end of 2024 were also on the list for deepest declines in multifamily units permitted for the year-ending February 2025. Austin and Phoenix saw multifamily permitting drop by about 40% each from last February, while Los Angeles and Washington, DC declined 34% and 23%, respectively. Combined, that’s 23,100 units fewer than the year before in just four markets. @include('site.elements.media.image', ['fileId' => 31806, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '540']]) @include('site.elements.media.image', ['fileId' => 31807, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '540']]) An additional three high supply markets saw permitting fall for the year, but the combined 3,845-unit decrease was minor in comparison. The remaining three high-supply markets actually increased annual permitting from last February by about 6,500 units, led by New York’s increase of 4,332 units. Other metros with significant declines in multifamily permitting include markets that have had recent oversupply concerns such as Jacksonville, Nashville and Raleigh/Durham. Turning to this month’s top permitting performers, nine of last month’s top 10 permitting markets returned on February’s list. New York continues to lead the nation for multifamily permits with the aforementioned 4,332-unit annual increase to 31,534 units (although, the Big Apple had a month-over-month decrease of almost 5,100 units from January’s annual figure). @include('site.elements.media.image', ['fileId' => 31812, 'attributes' => ['border' => '0', 'width' => '872', 'height' => '586']]) Dallas, Atlanta, Austin and Houston remained in the top five with annual permitting in the 12,000 to 14,000-unit range. Orlando and Tampa had modest increases in annual permitting to stay in the top 10, while Phoenix, Washington, DC, and Los Angeles made the deepest de...

Markets With Fastest Growing Renter-Age Population

2025-03-27T09:10:50-05:00

From 2022 to 2023, the U.S. population of 20- to 34-year-olds shrank by roughly 587,000 residents, according to the latest data from the U.S. Census Bureau. That decrease in 20- to 34-year-olds – a key demographic in apartment renter households – amounted to a year-over-year decline of 0.9%, below the 1% increase from 2021 to 2022. In several of the nation’s 150 largest apartment markets, however, the growth rate of young adults in 2023 registered at 1.5% or higher. The small inland Florida market of Lakeland-Winter Haven grew its young adult population 3.1% from 2022 to 2023, accounting for the addition of nearly 4,400 residents. Provo-Orem, UT added over 4,500 young adults, translating to a growth rate of 2.4% year-over-year. Huntsville, AL and Boise, City, ID grew their young adult populations about 2% each from 2022 to 2023. North Port-Sarasota-Bradenton, FL, Greenville/Spartanburg, SC, Austin-Round Rock, TX and Fayetteville-Springdale-Rogers, AR-MO grew their 20- to 34-year-old populations 1.5% to 1.8% year-over-year. However, Austin by far saw the most absolute growth in that cohort among those fastest growing markets, with an increase of nearly 8,900 residents. Helping to keep a healthy dose of young adults in the renter pool, all of these markets are home to a university.

Fall 2026 Student Housing Supply Leaders Ranked

2026-03-04T06:53:00-06:00

The upcoming years are set to witness significant construction activity in the student housing sector, though at a lower baseline this decade compared to last. In total, the nation’s student housing industry is expected to deliver about 30,000 beds across 37 campuses in the near term, though this could change due to delays and construction challenges. Florida State University is scheduled to lead the nation in Fall 2026 deliveries with over 2,600 beds set to come online, according to data from RealPage Market Analytics. The University of Tennessee is expected to add nearly the same number of beds in both 2025 (nearly 2,500 beds) and 2026, marking a more than 40% increase in existing purpose-built inventory in that two-year period. This substantial growth means that for every 100 beds currently near campus, an additional 40 will be built within two years. Meanwhile, UT delivered about 1,400 beds in Fall 2024 and already has 600 beds slated for Fall 2027. To help support demand for all those new beds, enrollment at Tennessee has been growing at one of the fastest clips nationwide. North Carolina State University and Arizona State University are each scheduled to receive over 2,000 beds in Fall 2026. Other major universities, including the University of Central Florida, University of Wisconsin-Madison, Texas A&M University, University of Arkansas and University of Southern California are forecasted to get between 1,200 and 1,900 new beds. @include('site.elements.media.image', ['fileId' => 31787, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '481']]) Another set of schools are still set to receive high supply in Fall 2026, but less than 1,000 beds. The University of Georgia leads this group with 966 beds expected. The University of Pennsylvania and UC Berkeley will also see notable supply additions. Expected to add between 500 and 550 beds, despite differing greatly in total enrollment, are Xavier University, University of Tampa and University o...

Work-from-Anywhere Trend Pushes Rents Ahead of U.S. Norm in Florida Beach Towns

2026-03-04T06:53:00-06:00

The COVID-19 pandemic inspired a mass migration to U.S. beach towns. When offices were shut down and employees were allowed to work from anywhere, many people moved to the beach. As a result of increased demand for apartments and limited supply along the Florida coastline, rents jumped notably across the state in 2021. Three years later, the gap created by those price increases continues. Effective asking prices for conventional apartments across Florida averaged $172 ahead of national rates as of February 2025, according to data from RealPage Market Analytics. From 2015 through 2020, by contrast, rental rates in Florida markets ran approximately in line with the national norm. @include('site.elements.media.image', ['fileId' => 31752, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Historically, the South Florida markets of Miami, West Palm Beach and Fort Lauderdale have been the only locales with rent growth ahead of national norms. But inspiring Florida’s recent surge in pricing were some beach towns that have historically seen prices at least moderately behind the U.S. average. And now, those beach towns join the South Florida markets in ranking above the U.S. average. @include('site.elements.media.image', ['fileId' => 31753, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '503']]) For the most part, these towns, located along both the Gulf and Atlantic Coasts, are relatively small, with existing unit counts ranging from about 32,000 units to 72,000 units. The one major apartment market included on the list is Tampa, with over 293,000 units. After only the South Florida markets of Miami, West Palm Beach and Fort Lauderdale, the small Naples-Immokalee-Marco Island apartment market posted one of the higher increases statewide, with effective asking rents of $2,212 in February. That was $850 more than operators in the market were asking five years ago in February 2020, before the global pandemic. Inspiring recent ren...

Nearly One-Third of Build-to-Rent Units Under Construction in 14 Submarkets

2025-04-06T02:00:03-05:00

Build-to-rent (BTR) construction remains elevated across the U.S., but some submarkets are gaining much more of this stock than others. As of mid-March, nearly 78,000 BTR units were under construction across 194 submarkets nationwide. But one-third of that stock was focused on just 14 key neighborhoods. Six Texas submarkets led the field, while five Phoenix neighborhoods made on the list. Three other South region submarkets in Tampa, Atlanta and Raleigh/Durham were also contenders. On the west side of Phoenix, Avondale/Goodyear/West Glendale led the nation for BTR construction, with 4,568 units underway. This submarket with 31,942 existing conventional units has seen that inventory expand an astronomical 105.4% over the last five years, according to data from RealPage Market Analytics. Another 9,234 conventional units were in development as of 4th quarter 2024. In the #2 spot, Allen/McKinney has 2,312 BTR units underway to accompany the 8,314 conventional units under construction. North of downtown Dallas, Allen/McKinney has seen its existing unit base expand 61.2% in the past five years. Rounding out the top five submarkets for BTR construction were Austin’s Round Rock/Georgetown (1,936 BTR units) and Phoenix’s Deer Valley (1,739 BTR units) and Pinal County (1,611 BTR units). More than 1,000 units were also underway across the remaining nine neighborhoods on the list.

Multifamily Permits Fall as Starts Bounce

2026-03-04T06:53:00-06:00

Multifamily permits dropped in February, while multifamily starts rebounded. February’s seasonally adjusted annual rate (SAAR) for multifamily permitting dipped 4.3% from January to 404,000 units, down almost 16% from last year. Meanwhile, annualized multifamily starts jumped 12.1% from last month to 370,000 units (still down 6.6% from last January), according to the latest report from the U.S. Census Bureau and the Department of Housing and Urban Development. While generally trending downward lately, the SAAR for multifamily starts shows more volatility than the not seasonally adjusted data series for starts. Comparing the two series, the SAAR tends to overcount starts when they are on an upward trend and undercount them on the downward trend. However, the two series tend to be in closer alignment at the peak of the series, just as they appear to be in the past few months, perhaps indicating multifamily starts are approaching the trough for this cycle. Supporting this trend is the fact that multifamily units under construction were down 21% from last January but have leveled off from last month to 754,000 units. Multifamily completions were down 20.7% for the month and 15.8% for the year to 512,000 units. Higher home prices, interest rates and building costs have dampened single-family development as well, with a 3.4% decline in annualized permitting in February from last year to 992,000 homes, about even with January’s SAAR. Annualized single-family starts showed the same volatility as multifamily with a 2.3% decrease from last February but an 11.4% increase from last month to 1.108 million units. Single-family completions increased 7.1% to 1.066 million units, down 1% for the year, while single-family units under construction were unchanged from last month at 640,000 units, down 6.7% for the year. @include('site.elements.media.image', ['fileId' => 31716, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '406']]) Compared to one year ago, th...

RealPage Economy Express Episode 44

2025-04-03T02:00:04-05:00

Episode 44: The U.S. economic landscape presents a mixed bag with steady employment, modest consumer spending and easing inflation, though concerns persist regarding consumer sentiment and uncertainties. Initial unemployment claims slightly increased to 223,000 for the week ending March 15, with a four-week moving average rising to 227,000, indicating modest layoffs. Consumer prices rose by 0.2% in February, better than January's 0.5% increase, with year-over-year inflation at 2.8%, primarily due to higher shelter costs. Producer prices remained flat overall, but certain food items, especially chicken eggs, surged by nearly 54%. Year-over-year producer prices rose by 3.2%. Retail sales increased by 0.2% in February after a 1.2% drop in January, while annual sales growth held steady at 3.1%. Consumer confidence remains under pressure. Building permits fell 1.2% in February to 1.46 million annualized units, about 7% lower than a year ago. Existing-home sales rose by 4.2% in February to an annual rate of 4.26 million homes sold, with average prices climbing 4% year-over-year to approximately $398,400. Renting remains more attractive than owning in many markets, and rents in some areas have been declining. The Federal Reserve kept interest rates steady at 4.25%-4.5% but hinted at two possible rate cuts later this year, depending on economic conditions. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

Steady Apartment Supply Allows Strong Fundamentals in DC

2026-03-04T06:53:00-06:00

Washington, DC has reported some of the nation's most stable apartment fundamentals throughout the supply-induced rent fluctuations of the last couple years. One key reason why the market has maintained near-normal rent and revenue growth is its remarkably steady construction pipeline. Unlike many markets nationwide, Washington, DC has posted little fluctuation in its delivery load over the last few years, with an average of about 12,800 new units delivered annually over the past five years, coming within a tight range of roughly 11,000 units to 14,700 units per year during that period. In 2024, a total of 14,187 new units came online in the market, according to data from RealPage Market Analytics. Completions were geographically distributed, with six of DC’s 36 submarkets receiving roughly 1,000 to 1,500 units last year. Bethesda/Chevy Chase and Crystal City/Pentagon City had faster ramp ups in completions of around 7.5%, but fundamentals in those two submarkets remained strong in February. @include('site.elements.media.image', ['fileId' => 31575, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) While supply has been relatively steady over the past five years, demand has not. Demand dropped during the onset of the pandemic and then peaked in early 2022, only to fall again in late 2022 and early 2023. However, over the past year, demand has picked back up. In 2024, DC recorded the sixth-strongest demand showing nationwide, absorbing over 21,900 units and surpassing concurrent new supply by more than 7,700 units. That level was the most seen nationwide. With demand improving, occupancy in Washington, DC rose 140 basis points (bps) year-over-year to 96% in February 2025, landing 40 points above DC’s pre-pandemic level from February 2020. In addition, DC’s recent occupancy rate was 100 bps above the national norm of 95% and has remained above the U.S. average for nearly two years. Across the price spectrum, Class B units in DC continued to...

California Hit Hard by Jobs Revisions

2026-03-04T06:53:00-06:00

Much of Southern California and the Bay Area had their reported employment levels for 2024 revised downward after the Bureau of Labor Statistics’ annual benchmark revisions. With these revisions, all but two of California’s major metros had job losses in the year-ending January 2025. In fact, six of the bottom 10 metros for job change were in the Golden State. California’s weaker employment situation comes at a time when new apartment supply is still peaking for this cycle.. @include('site.elements.media.image', ['fileId' => 31641, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Conversely, many of the same job change leaders from recent months remained in the top 10 list in January. New York, Houston and Dallas returned as the top three jobs generators, and with Los Angeles falling off the list, Philadelphia moved into the #4 spot. @include('site.elements.media.image', ['fileId' => 31640, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Orlando and Washington, DC added close to 32,000 jobs for the year to rank #5 and #6, while Miami, Chicago, Seattle and Atlanta added between 23,000 and 26,000 jobs to round out the top 10. Note: RealPage’s list of market names do not yet reflect the new names utilized as of 2023 by the Census Bureau, the Bureau of Labor Statistics and other data providers after the Office of Management and Budget’s revised delineations of Core Based Statistical Areas based on the 2020 Decennial Census. Together, the top 10 markets added 438,800 jobs in the year-ending January, which was 22,000 more than the same 10 markets added last January. However, the next 10 markets (#11 to #20) of RealPage’s top job gain markets saw their total gains decrease 6.6% to total 190,500 new jobs. Like last month, only New York exceeded 100,000 jobs gained for the year and only one gained between 50,000 and 99,999 jobs. Twenty of our top 150 markets reported annual job losses for the year, seven more th...

Manhattan Commuter Submarkets Add Massive Apartment Supply

2026-03-04T06:53:00-06:00

In the past 10 years, some of the nation’s biggest apartment completion volumes were in Manhattan’s commuter submarkets. The U.S. overall experienced record apartment deliveries in the past decade, with roughly 3.5 million units completed, according to data from RealPage Market Analytics. That volume increased the existing supply base by 21%. Among the nation’s largest 150 apartment markets, there are 996 submarkets. Among those submarkets, 13 saw their inventories increase by more than 17,000 units in the past 10 years. For reference, the smallest of those 150 apartment markets, Fort Collins, CO, has a total existing stock of about 24,400 units. Though several of the top submarkets on this list were in Texas, where apartment construction has been explosive in recent years, three of the nation’s top five neighborhoods for apartment deliveries in the past decade were commuter submarkets to Manhattan. @include('site.elements.media.image', ['fileId' => 31622, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '629']]) Overall, the New York apartment market is typically a development hotspot. In the past 10 years, however, New York dropped down to #6 for apartment completion volumes, beat out by South region markets (mostly in Texas) Dallas, Houston, Austin and Atlanta, and also by Washington, DC. New York logged the delivery of roughly 108,300 units between the end of 2014 and the end of 2024, and roughly one-third of that product was delivered in Brooklyn. Another 21% came online in Queens. According to a report from the City of New York, more than 880,000 New York City residents commute from the other four boroughs into Manhattan, while another 540,000 workers commute from outside the city. With the expansion of more flexible work-from-home and hybrid policies after the COVID-19 pandemic, commuters from a growing number of areas find savings opportunities by renting outside of Manhattan and commuting in less frequently. In the past 10 years, New...

Apartment Supply Has Yet to Hit a Peak in Several West Coast Markets

2025-12-04T08:08:41-06:00

A handful of West Coast apartment markets could start to see occupancy stabilize and rent growth accelerate as supply peaks. But for some markets, that supply peak has yet to come. Large West Coast apartment markets past peak supply include Portland, Oakland and San Francisco. Markets that peaked in early 2025 include Sacramento and Tacoma (and the U.S. overall). In these markets, easing supply volumes could help boost occupancy and rent positioning in the near term. But there are many other major West Coast markets where supply isn’t expected to peak until later this year or even into 2026. Supply volumes are scheduled to peak this summer in Seattle, Riverside and San Jose. However, those peaks are subject to change if supply delays impact construction timelines. Three large markets where supply is slated to peak in late 2025 or early 2026 (if timelines hold) include Los Angeles, San Diego and Anaheim.

Large Markets Where Apartment Demand Far Outpaced New Supply in 2024

2026-03-04T06:52:59-06:00

Roughly three-fourths of the nation’s 50 largest apartment markets saw demand exceed concurrent supply in 2024. Of those, five markets recorded excess demand of more than 3,000 units. Apartment demand in the U.S. overall hit near its highest level in more than three decades in calendar 2024 and easily outpaced concurrent new supply, which reached decades-long highs. Roughly 588,900 apartment units came online in the U.S. in 2024, while nearly 666,700 units were absorbed, creating about 77,800 units of excess demand, according to data from RealPage Market Analytics. That was quite a feat considering new supply was at a 50-year high. Aside from the rebound that occurred in 2021 due to pent-up demand following the onset of the COVID-19 pandemic, much of that excess demand took place in the West (29,809 units) and South (25,506 units) regions, but the Midwest (14,368 units) and Northeast (8,132 units) regions also recorded demand exceeding new supply levels in 2024. @include('site.elements.media.image', ['fileId' => 31221, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) The two markets with the most excess demand in 2024 were in the South region. Washington, DC absorbed 21,928 units during the year, while concurrent supply totaled 14,187 units. While that demand level ranked #6 nationally and the supply volume ranked #12 nationally, the 7,741 units of excess demand in Washington, DC during 2024 was the most seen nationwide. As a result, occupancy in DC climbed 130 basis points (bps) year-over-year to 96%, ranking #6 among the nation’s 50 largest markets. @include('site.elements.media.image', ['fileId' => 31231, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '469']]) Houston landed in the #2 spot nationally for excess demand of 6,849 units in 2024 after absorbing 31,925 units and receiving 25,076 units of new supply. That annual demand tally ranked #2 nationally, while concurrent supply ranked #4. With demand outpacing n...

2025 Apartment Deliveries will Be Savannah’s Biggest Volume in 25 Years

2026-03-04T06:53:00-06:00

Developers have found a construction hotspot in Savannah, GA over the last five years, and that trend is set to continue in 2025. Savannah, known as the Hostess City of the South, is Georgia’s oldest city, in existence since 1733. A port city separated from South Carolina by the Savannah River, Savannah currently ranks as Georgia’s fifth-most populous city, and the third most-populous metropolitan area. The city was established with 24 squares and still has 22 of those today, which form the Savannah Historic District. This small market with only two submarkets boasts a population of 424,935 residents with a workforce of roughly 208,900. From 2020 to 2023, Savannah’s population grew 4.8%, according to the latest estimates from the U.S. Census Bureau. That rate notably surpassed the national average growth rate of just 1% during that period and ranked as the third fastest growth pace across Georgia’s metropolitan areas. @include('site.elements.media.image', ['fileId' => 31509, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) With a growing population, roughly 2,600 new apartment units are projected to come online in Savannah in calendar 2025, expanding inventory 7.1%. That would be the largest delivery load in Savannah in 25 years. Those units will account for nearly 81% of the 3,175 units under construction in the market as of 4th quarter 2024. Once all units under way are completed, Savannah’s existing unit base will swell another 8.8%, a significant increase for a market that has seen supply swell 29.9% over the last five years. In 2024, developers added some 2,213 units to inventory in the city known for its blooming azaleas and magnolias. That was the second highest annual completion volume since 2000. Over the last five years, deliveries were largely concentrated within the North Savannah submarket. Existing inventory in North Savannah climbed about 46% during the five-year period. @include('site.elements.media.image', ['fileId' =...

Northeast Commuter Markets Offer Rent Savings

2025-12-04T08:08:21-06:00

Small commuter towns became popular during the COVID-19 pandemic, when employees started working from home. Five years later, these more affordable locales remain prevalent. Operators have been pushing rental rates in these commuter markets in light of strong demand and occupancy readings, but prices still remain behind larger markets nearby. For example, effective asking rents in January were at $1,743 in Allentown, PA, a small commuter market roughly an hour and a half drive to Philadelphia or two hours to New York. Workers willing to live in this smaller town and commute to the bigger cities pay about $100 less than the average rent in Philadelphia and a whopping $2,700 less per month than they would if they lived in New York. Two small towns that have become commutable to New York in the wake of more flexible work-from-home and hybrid policies are New Haven, CT and Trenton, NJ, where rents are roughly $2,000 less than prices in New York. As a result, operators have pushed rental rates above average, as prices in these two locales have grown by about half since 2020. In comparison, effective asking rents in the U.S. overall have grown about 27% on average during that period.

Texas Submarkets with Explosive Apartment Inventory Growth

2026-03-04T06:53:00-06:00

The latest apartment building cycle has brought record completions to the U.S. in the past decade. Some neighborhoods saw especially explosive growth in the past 10 years, and most of those were in Texas. Within the nation’s largest 150 apartment markets, there are 996 submarkets. Among those submarkets, 12 saw apartment inventory grow by more than 140% in the past decade, according to data from RealPage Market Analytics. In comparison, the U.S. overall saw an increase of 21% between the end of 2014 and the end of 2024. Interestingly, while smaller markets tend to see bigger percentage growth rates given their size, only one neighborhood in a smaller market (Boise City) is included in this list. For the most part, large markets claimed the fastest growing neighborhoods. And among the 12 submarkets across the U.S. with the most intense inventory growth in the past 10 years, most were located in Texas. @include('site.elements.media.image', ['fileId' => 31492, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '594']]) Dallas Submarkets Dallas overall has been a national leader for completion volumes in the past 10 years, with the delivery of nearly 201,000 units. Coming at #2 and #3 on a national scale were Houston (164,100 units) and Austin (126,100 units). Dallas’ large existing base led to an inventory increase of 38.3% between 2019 and 2024, which ranked at #21 among top 150 markets. A few Dallas submarkets, mostly northern and eastern suburbs, blew past the market’s inventory growth pace for the decade. @include('site.elements.media.image', ['fileId' => 31491, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Apartment inventory in Frisco more than tripled in the past 10 years. The existing stock grew 238.3% between 2014 and 2024, with the addition of 26,618 new apartment units. In fact, that total volume of completions was #3 nationwide, following only the typically heavy hitters Brooklyn and Jersey City. Frisco is a...

Prolific Apartment Additions Coming to Asheville

2026-03-04T06:52:59-06:00

Asheville, NC is set to receive more apartment units in 2025 than in any other year on record, and that ratio of growth is by far the nation’s largest. @include('site.elements.media.image', ['fileId' => 31293, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Asheville added 1,198 new units in 2024, expanding existing inventory 4.7% and taking its unit count to roughly 26,700 units. However, completions are scheduled to ramp up in 2025. Asheville is expecting 3,549 units to come online this year, marking the highest delivery load for this market in the RealPage Market Analytics data set. Those additions translate to a 13.1% annual inventory increase, the highest in the nation and more than five times the national average of 2.4%. The nation’s second-largest growth rate in 2025 is expected in Huntsville, AL at 8.3%, well below Asheville’s anticipated growth pace. (Huntsville, meanwhile, has been the fastest-growing apartment market in the nation over the last couple years.) @include('site.elements.media.image', ['fileId' => 31479, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Asheville’s existing inventory has grown at one of the fastest clips nationwide in the past 10 years. From 2014 to 2024, Asheville added roughly 9,800 apartment units, expanding its inventory nearly 55%. That expansion pace ranked #11 out of the nation’s 150 largest apartment markets. Still, even in a decade of elevated supply, the small North Carolina market’s delivery volume has averaged less than 1,000 units annually. Demand Mounts, But Still Falls Below Supply @include('site.elements.media.image', ['fileId' => 31480, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Annual demand levels have fallen short of concurrent supply for more than two years. However, demand is expected to pick up in tandem with elevated supply in 2025. In 2024, the market absorbed 1,007 units, trailing new supply by just 191 units. By...

Post-Pandemic Job Recovery Sluggish in Some Midwest Markets

2025-03-20T02:00:03-05:00

Like much of the U.S., every metro across the Midwest lost a lot of jobs during the COVID-19 pandemic, but the road to recovery hasn’t been as easy in the Midwest as it has been in some other regions. In fact, in some major Midwest markets, the job base at the end of 2024 continued to lag employment levels from the end of 2019. Milwaukee, Minneapolis and Cleveland have had the hardest time returning to pre-COVID job levels, as employment counts at the end of 2024 were still roughly 1% to 2% behind year-end 2019 numbers. It should be noted, however, that Cleveland and Minneapolis are making progress. Milwaukee, in contrast, lost another 2,600 jobs in 2024, specifically. The Detroit and Chicago employment bases were roughly fully recovered by the end of 2024, with job numbers essentially matching pre-COVID levels. Major Midwest markets topping 2019 norms by roughly 2% to 4% were Columbus, St. Louis, Cincinnati and Kansas City. The one major Midwest market with a year-end 2024 job count notably ahead of pre-COVID norms was Indianapolis. In fact, job growth in Indianapolis since the end of 2019 just missed a top 10 performance, coming in at #15 with growth of 8.9%, lagging just a bit behind Las Vegas and Houston. For more information on the state of Midwest apartment markets, including forecasts, watch the webcast Market Intelligence: Q1 Midwest Region Update & 2025 Outlook.

Orlando’s Kissimmee/Osceola County Logs One of Nation’s Largest Apartment Supply Increases

2026-03-04T06:52:59-06:00

Orlando’s Kissimmee/Osceola County had one of the fastest growing apartment inventories across the nation in calendar 2024. Orlando added 14,012 new apartments in 2024, according to data from RealPage Market Analytics. That was one of the biggest delivery volumes nationwide last year, placing Orlando between typically strong Northeastern development markets Newark (15,300 units) and Washington, DC (13,300 units). The Kissimmee/Osceola County submarket, located south of downtown Orlando, was responsible for about a quarter of Orlando’s delivery total in the past year. Orlando’s largest submarket includes Kissimmee, Celebration and St. Cloud and is known for its proximity to major tourist attractions like Walt Disney World Resort, Universal Orlando Resort and SeaWorld. The economy in this submarket has been improving, with job growth in sectors such as Leisure and Hospitality Services, anchored by the major theme parks. Specifically, most of the new apartment supply delivered in 2024 in Kissimmee/Osceola County came online in the northern portion of the submarket, in downtown Kissimmee and Hunter’s Creek. @include('site.elements.media.image', ['fileId' => 31388, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Overall, Kissimmee/Osceola County logged delivery of 3,480 units in calendar 2024, accounting for 10% inventory growth. In fact, among the 996 submarkets in all the nation’s largest 150 apartment markets, Kissimmee/Osceola County ranked as one of the fastest growing in 2024, coming in at #17 right after North Central Austin (3,551 units) and just before Central Nashville (3,463 units). @include('site.elements.media.image', ['fileId' => 31398, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Supply volumes have increased notably in Kissimmee/Osceola County in recent years. In the past decade, annual deliveries averaged closer to about 1,500 units. In calendar 2024, twice that volume came online. Despite a ra...

RealPage Economy Express Episode 43

2025-03-18T02:00:03-05:00

Episode 43: The economy is showing some signs of slowing, with softening employment growth and housing activity, persistent inflation and weakening consumer confidence. Existing-home sales fell 4.9% in January to an annualized pace of about 4.1 million, though sales remained steady in the Midwest. Home sales were up 2% year-over-year, while inventory was up 16.8%. Mortgage interest rates around 7% continued to impact affordability. Home prices were up 3.9% in calendar 2024, according to the S&P CoreLogic Case-Shiller Index. Leading price increases were seen in New York, Chicago and Boston. Total construction spending fell 0.2% in January to $2.19 trillion annually, with private construction down 0.2% and residential spending down 0.4%. Total spending was still up 3.3% year-over-year. The University of Michigan’s Index of Consumer Sentiment plunged nearly 10% in February, driven by a 19% decline in durable goods buying conditions due to tariff concerns. The Conference Board’s Consumer Confidence Index dropped 7 points to 98.3, with the expectations component below the recession warning level for the first time since mid-2024. Personal income increased 0.9% in January, while consumer spending fell 0.2%. The PCE price index rose 0.3% for the month and 2.5% year-over-year, indicating continued inflation pressures. February payrolls grew by 151,000 workers, missing expectations, while unemployment rose to 4.1%. Labor force participation declined to 62.6%. GDPNow estimated a 1st quarter decline in real GDP of 2.4%. That was an improvement from earlier estimates, though trade continues to drag. Tariffs may delay construction projects as imported materials are affected. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

U.S. Job Gains Increase Slightly in February, But Remain Below Expectations

2025-03-20T02:00:03-05:00

U.S. employers increased hiring efforts recently, but not as much as economists expected. Employers added roughly 151,000 workers to payrolls in February 2025, according to the Bureau of Labor Statistics. Those additions were well above the 125,000 jobs added in January, which were revised down from initial estimates of 143,000, but below the 160,000 to 170,000 job additions expected by economists for February. Still, the U.S. economy has added jobs for 50 consecutive months, the second-longest period of job base expansion on record dating back to 1939. Job growth in February was concentrated in Education/Health Servies (+73,000 jobs), Financial Activities (+21,000 jobs) and Trade/Transportation/Utilities (+21,000 jobs), while and Leisure/Hospitality Services (-16,000 jobs) and Professional/Business Services (-2,000 jobs) were the only major industries to lose jobs during the month. Of note, the 11,000 Government jobs gained in February was muted by the 10,000 jobs lost in Federal Government, the steepest decline since June 2022. However, the full effect of job losses at federal agencies may not be fully seen until this spring. For the year-ending February 2025, the nation’s employers added roughly 1.9 million jobs or an average 162,000 jobs a month. Meanwhile, the U.S. unemployment rate has remained in a narrow range of 4% to 4.2% since May 2024 and registered at 4.1% in February, up 10 basis points from January. This post is part of a series analyzing employment data from the Bureau of Labor Statistics. For more on this data, read previous posts on Job Growth.

North and South Carolina Set to Gain Nearly 60,000 New Apartment Units

2025-03-20T02:00:03-05:00

More than 59,400 units are under construction across North and South Carolina with an expected 45,700 of those units coming online in 2025. Virtually all of those units underway across the Carolinas are concentrated in just six of the region’s 10 markets, according to data from RealPage Market Analytics. The largest market in the Carolinas, Charlotte, had 25,064 units underway at the end of 2024. No stranger to new apartment supply, Charlotte has grown total inventory nearly 29% over the last five years, well above the national pace of roughly 11%. The 18,863 units expected to deliver to Charlotte in 2025 would set a 29-year high. With those new units, Charlotte’s existing unit base would expand another 7.8%. Job growth and population gains have been strong across the state, helping drive demand for all those new units. Raleigh/Durham had 13,799 units under construction in 4th quarter 2024, with 10,353 of those units expected to complete in 2025. Those new units would increase the unit base 5.0% this year. That growth rate comes on the heels of a prolonged supply wave as this market has grown total inventory 25% in the last five years. Spurring demand, Raleigh/Durham’s young adult population of 20- to 34-year-old cohort grew 8.4% from 2018 to 2023, compared to 0.3% growth nationally. Punching above its weight in terms of new supply, developers are expected to add 3,509 units this year in Asheville, a small market in western North Carolina’s Blue Ridge Mountains. That would grow the existing unit count (26,745 units) a massive13.1%, notably above the U.S. norm. Over the past five years, the inventory base in Asheville has expanded 19.7%. The population in Asheville increased 5.2% from 2018 to 2023, stimulating demand. Jumping to the Atlantic coast of South Carolina, supply in Charleston is expected to climb with 3,867 units under construction. The majority of those units (3,213 units) are projected to complete in 2025, expanding tot...

Modest Momentum Builds in February Rent Growth, Occupancy Readings

2026-03-04T06:52:59-06:00

Apartment rents gained a modicum of momentum in February, on the heels of a similar trend in January, altogether pointing toward stabilization in rent change after almost two years of near-stagnant growth. Apartment rents in market-rate units grew 0.41% in February, according to data from RealPage Market Analytics. That rate fell below the long-term norm for February rent growth of 0.53% from 2015 to 2024 but was still the highest February reading since 2022. At the same time, the nation’s once-in-a-generation apartment supply wave is cresting, with supply dissipating more quickly in some markets than others. As the construction pipeline empties, demand rallies and operators are generally more able to realize occupancy gains and rent momentum. @include('site.elements.media.image', ['fileId' => 31317, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '1233']]) In the year-ending February 2025, effective asking rents in professionally managed market-rate units grew 0.8%. Although that rate fell easily below long-term norms, it marked the highest annual rate seen since July 2023. In the monthly reading, the delta between February 2025’s rent growth rate (0.41%) and the year-ago reading from February 2024 (0.25%) marked a slight bump in momentum. In other words, the below-average reading from last year was replaced with a slightly less below-average reading, appearing to indicate a trend toward more normal rent growth going forward. @include('site.elements.media.image', ['fileId' => 31316, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) In terms of occupancy, demand pushed the national reading up 10 basis points (bps) over last month to stand at 95% in February, a 90-bps gain year-over-year. Notably, occupancy ticked up 20 bps month-over-month in a few high supply markets, including Phoenix, Fort Worth and Orlando. While these three markets rank among the bottom in the nation for rent cuts, strengthening occupancy indicates...

Large Markets with Apartment Rents Below $1,400

2025-03-17T02:00:04-05:00

Some of the most affordable places to rent a market-rate, professionally managed apartment are in the South and Midwest. Of the nation’s 50 largest markets, 11 had average effective asking rents below $1,400 per month as of January. Six of those markets were in the Midwest (two in Ohio) and five were in the South (three in Texas). Taking the top three slots for lowest monthly apartment rents were South region markets, with San Antonio at #1 with average rent of $1,181 in January, according to RealPage Market Analytics. That’s more than $600 less than the national average ($1,818). In second place was Memphis ($1,195), the only other market with monthly rents below the $1,200 mark. Despite low monthly rental rates, those two South region markets also had the lowest occupancy rates among the nation’s 50 largest markets, both at 92.1%. Greensboro/Winston-Salem ($1,235) rounded out the three lowest priced markets in the nation, while two other South region markets had monthly rents below $1,400 (Houston #8 at $1,349 and Fort Worth #11 at $1,358). Among the six lowest priced Midwest markets, monthly rents were tightly clustered around $1,300, ranging from $1,296 in Indianapolis (#4) to $1,351 in Kansas City (#10). For comparison, at the opposite end of the spectrum, New York had by far the nation’s highest monthly asking rents of $4,500.

Multifamily Permitting Falling Fast in Top Markets

2026-03-04T06:52:59-06:00

Six of the top 10 metros for multifamily permits saw their totals fall in the year-ending January, with double-digit declines in all of them. The steepest percentage decreases occurred in Phoenix, Austin and Los Angeles with each reporting a decline of 33% to 42%. Washington, DC, Houston and Dallas fell by 13% to 16%, according to the latest data from the U.S. Census Bureau. However, the decline in multifamily units has not been uniform across the top permitting markets. The New York-White Plains metro division has been a perennial leader for the past few years and their 12-month total through January 2025 of 36,630 units led all markets again, an almost 60% increase from last January. Atlanta also reported a significant increase in permitting from last year but there is some uncertainty about the accuracy of their reported permits in the post-pandemic period. Orlando and Seattle’s multifamily permitting increased slightly from one year ago. @include('site.elements.media.image', ['fileId' => 31180, 'attributes' => ['border' => '0']])@include('site.elements.media.image', ['fileId' => 31215, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '685']]) Nine of last month’s top 10 permitting markets returned on January’s list. Orlando replaced Fort Worth on this month’s list and a few changed places. After New York’s 36,630 units, the next three markets permitted about 14,200 units each, less than half New York’s volume. Houston and Phoenix permitted close to 12,000 units for the year, while the remaining top 10 markets were in the 8,700 to 10,000 units range. In addition to New York, other markets with significant year-over-year increases in annual multifamily permitting in January were Fort Worth (+2,897 units), Chicago (+2,243 units), Milwaukee (+1,379 units), Atlanta (+1,332 units) and Newark (+1,127 units). Markets with significant declines in multifamily permitting outside of the top 10 markets include Jacksonville (-5,300 units), Minneapolis/S...

Unemployment Rates Vary Widely Among U.S. States

2025-03-12T02:00:04-05:00

Unemployment rates among the nation’s 50 states varied widely, with a span of 380 basis points (bps) between the best and the worst as of December 2024. Twenty-nine states had jobless rate increases from a year earlier, 11 states had decreases and 10 states had little (less than 10 bps) or no change. Although unemployment for the nation overall has risen recently, rates have improved dramatically since reaching a peak during the COVID-19 pandemic of 14.8% in April 2020, which was the worst reading since the Great Depression. Most recently, the U.S. average unemployment rate rose 30 basis points year-over-year to 4.1% in December, according to seasonally adjusted data from the Bureau of Labor Statistics. Among U.S. states, the largest surge in unemployment from December 2023 to December 2024 was in South Carolina with the rate jumping 170 bps, while the deepest decline of 120 bps was in Connecticut. Sixteen states had December unemployment rates that exceeded the U.S. average by more than 10 bps, with Nevada and California posting the highest rates in December, at 5.7% and 5.5%, respectively. Thirty states had rates below the national norm. South Dakota recorded the lowest unemployment rate in December at 1.9%, with the second-lowest rate of 2.4% in Vermont. Four states, Massachusetts (4.1%), Oregon (4.1%), Texas (4.2%) and West Virginia (4.2%) matched or were within 10 bps of the U.S. average.

Apartment Rents in Pittsburgh Trail U.S. Average

2025-03-14T08:24:21-05:00

Pittsburgh is the only major apartment market in the Northeast region with asking rents below the U.S. average. As of January, effective asking prices in Pittsburgh were $1,555, about 14.5% below the U.S. average of $1,818, according to data from RealPage Market Analytics. This is not a new development, as Pittsburgh tends to command rental rates behind the U.S norm. In the past decade, Pittsburgh rents have been, on average, about 16% below national rates. The other four large Northeast apartment markets ranked ahead of national norms for rents in January, with most – New York, Boston and Newark – placing among the top 10 for prices. Philadelphia rents ran approximately in line with the national norm as of January, as is typical. Meanwhile, Pitsburgh rents came in closer to prices in South region markets like Atlanta and Charlotte. To be fair, Pittsburgh is the smallest of the major Northeast markets, with just over 150,000 units of existing apartment stock. That’s quite a bit smaller than in Philadelphia (422,800 units) and Boston (432,200 units), which are the next-biggest markets. For more information on the state of markets in the Northeast region, including forecasts, watch the webcast: Market Intelligence: Q1 2025 Northeast Region.

Strong Job Gains Meets High Apartment Supply Across Florida

2026-03-04T06:52:59-06:00

Job growth has been significant across the state of Florida in the current cycle, which would typically lead to solid apartment occupancy and rent growth. But apartment performance in the Sunshine State has been subdued by staggering new supply volumes. Florida added 950,000 jobs in the 2020–2024-time frame, according to data from the Bureau of Labor Statistics. That was a standout performance, second only to Texas. In addition to total jobs gained, however, Florida also impressed in percentage growth. Only a few states have seen a higher percentage growth rate than Texas and Florida, including much smaller Utah and Idaho. @include('site.elements.media.image', ['fileId' => 31150, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Still, even stellar job growth cannot prevent performance challenges brought on by high apartment supply in Florida. Roughly 285,000 new market-rate apartments have been delivered in Florida over the past four years, while Texas saw nearly 395,000 units complete, according to data from RealPage Market Analytics. In a distant third place was California, which added 170,000 units during that period. However, California's population (40 million) is nearly double that of Florida (23 million), which points to the significance of the local apartment supply volume. @include('site.elements.media.image', ['fileId' => 31144, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) The Florida market that saw the most new apartment supply deliver in the past four years was Orlando, with over 50,200 units. Other markets with deliveries around the 40,000-unit mark include Miami and Tampa, while Jacksonville saw completions of just under 30,000 units in the 2020-2024 time frame. Notably, Jacksonville is a much smaller market than most of these, with an existing unit count of just over 148,000 units. That means that 20% of the market’s total volume of existing product was delivered just in the past four years...

Texas Apartment Supply to Drop Notably in 2025

2026-03-04T06:52:59-06:00

After dominating for new apartment supply volumes in 2024, Texas is now past its peak and delivery volumes are dropping off. Nearly 120,000 new apartments delivered across the Lone Star State in calendar 2024, according to data from RealPage Market Analytics. In fact, nearly five out of every 100 existing apartment units in the state delivered in 2024. But delivery volumes for 2025 are set to drop by about half, with 70,000 units scheduled to complete in the coming year. By 2026 and 2027, scheduled supply drops off even more, with roughly 45,000 to 50,000 units expected to complete each year. Those volumes anticipated for 2026 and 2027 will be the smallest annual totals Texas has seen since 2013, which was the last time calendar-year deliveries fell below 50,000 units statewide. @include('site.elements.media.image', ['fileId' => 31125, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) A precursor of supply, multifamily starts also declined notably in recent years in Texas. In calendar 2022, over 114,000 units got off the ground in Texas, a peak volume for the state. After that historic peak, starts dropped to 68,000 units in 2023 and declined even further to about 38,800 units in 2024. At least some of those starts delivered in 2024 and the remaining will most likely come online in 2025. @include('site.elements.media.image', ['fileId' => 30957, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Major Texas apartment markets that have seen the most severe slowdowns in starts include Houston, Austin and Dallas. Only about 6,000 units started in calendar 2024 in Houston, less than half the 14,600 or so units that got off the ground in calendar 2023. In fact, Houston saw fewer units start in 2024 than in any calendar year since 2010. Austin saw about 7,500 units start in 2024, also roughly half the 15,700 units that broke ground in 2023. Like in Houston, the volume of units that started in Austin in the past year was...

Operators Defaulting to Longer Lease Terms Amid Record Supply Levels

2025-03-07T02:00:03-06:00

As the apartment industry continues to labor under a wave of new supply, operators have had to find ways to navigate the largest volume of completions in more than 50 years. One of those ways has been to offer longer term lengths for both new and renewal leases. Longer term leases help reduce the number of simultaneously vacant units during a period when renters now have more options than ever to choose from, while also potentially timing future unit availability with lower supply volumes. In the five years prior to 2020, the average term length for a signed new lease was roughly 12 months while renewals averaged 11.5 months, according to data from RealPage Market Analytics. But as new unit deliveries began to increase sharply in 2023, operators pivoted to offering longer lease terms. In turn, average lease term lengths now sit at their highest levels in the past decade. New lease terms have seen the largest change from their pre-COVID norm, increasing 7% to an average length of nearly 13 months as of January. Renewals have seen a slightly smaller increase from historic levels of 5%, with an average term length of 12 months.

Price Cuts in Denver Drop Rental Rates Blow U.S. Norm in January

2025-03-07T02:00:03-06:00

For the first time in 10 years, price cuts in conventional apartments across Denver dropped rents behind the U.S. average in January. Effective asking rents in Denver typically register above the national average, but recent price cuts dropped the rate to $1,801 in January, according to data from RealPage Market Analytics. The U.S. norm was a bit higher at $1,818, making the first time since March 2014 that monthly rents in Denver ran behind the national average. Over the past decade, prices in Denver have held an average premium of just over 6% over the U.S. norm. The peak of this premium was at about 10%, recorded in August 2015 and again in July 2017. In the past decade, prices climbed at about the same clip in Denver as in the U.S. But in recent months, after peaking in July 2024 at $1,925, prices started coming down notably in the second half of 2024. Denver remains a desirable destination for a young demographic of renters, but in recent years, occupancy has come down in this apartment market and has slightly trailed U.S. norms. Contributing to waning occupancy and price cuts, Denver has been a hotbed of construction activity. The existing unit base in Denver climbed by an average of 7% annually over the course of the past 10 years, well ahead of U.S. average annual growth of 4%.

Record Demand in Atlanta Largely Offset by High Supply

2026-03-04T06:52:59-06:00

The Atlanta apartment market checks off many boxes that both investors and renters love. The market is the most populated MSA in the Southeast (about 6.2 million residents, according to the latest Census data) and offers a stable and well diversified economy. Atlanta is home to 16 Fortune 500 companies such as Home Depot, UPS, Delta Airlines and Coca-Cola. Total employment in the market hovered around 3.1 million at the end of 2024, with an annual growth rate of 0.9%. @include('site.elements.media.image', ['fileId' => 30989, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '323']]) These economic drivers translate to a need for a considerable amount of housing supply. Atlanta’s multifamily investment volume reflects that the market is a popular destination to deploy capital. Rewinding the clock back to 2014, Atlanta only trailed New York and Los Angeles for apartment sales volume. Today, the market remains relatively liquid with $4.5 billion worth of product exchanging hands and keeping Atlanta on the top 10 leaderboard, according to Real Capital Analytics. Affordable housing is a big draw for renters as well. Monthly effective rents averaged $1,577 as of 4th quarter 2024, registering modestly below the national average ($1,831), according to data from RealPage Market Analytics. Across Atlanta’s 36 submarkets, rents surpassed $1,900 a month in the urban core neighborhoods of Midtown Atlanta and Buckhead. On the flip side, a number of submarkets posted monthly rents less than $1,250 as of 4th quarter 2024, including South Atlanta, Clayton County, South Fulton County and Stone Mountain.In the 4th quarter 2024, Atlanta registered demand for 7,632 units, the highest 4th quarter reading since RealPage started tracking the market in 1993. Local apartment demand has increased 9 out of the last 10 quarters, with the 2024 reading totaling 24,580 units. That ranks Atlanta as the 5th highest in the nation, joining the likes of other Sun Belt demand heavy weig...

RealPage Economy Express Episode 42

2025-03-06T02:00:03-06:00

Episode 42: While the U.S. economy is showing resilience, there are underlying challenges. Unemployment claims edged up to 219,000 last week, a 5,000-claim increase, reports the U.S. Department of Labor. Builder confidence dropped to 42, the lowest in five months, due to tariffs, mortgage rates and rising costs, according to the National Association of Home Builders. Building permits inched up 0.1% in January but remain 1.7% lower than a year ago, reports the U.S. Census Bureau. Housing starts fell 9.8% from December and 0.7% year-over-year. Mortgage activity is cooling. Applications fell 6.6% last week, even though 30-year fixed rates slipped to 6.9%, per the Mortgage Bankers Association report. Refinance applications dropped 7% but remain higher than the year-earlier rate. Inflation remains a real concern. Consumer prices rose 0.5% in January, bringing the annual inflation rate to 3%. Shelter costs drove much of the increase, while energy prices climbed 1.1%. The Conference Board’s Leading Economic Index fell 0.3% in January, reversing recent gains. GDP growth for 2025 is projected at 2.3%, with stronger momentum in the first half. Federal Reserve Chair Jerome Powell indicated interest rate cuts are on pause until inflation shows progress. New tariffs are on the horizon, making it difficult to reduce inflation moving ahead. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

U.S. Residential Starts Decline in January

2026-03-04T06:52:59-06:00

Annualized residential starts declined in all categories in January. Multifamily starts fell to 355,000 units in January, down 11% from December’s seasonally adjusted annual rates (SAAR), according to the latest report from the U.S. Census Bureau and the Department of Housing and Urban Development. Meanwhile, single-family starts dipped 8.4% to 993,000 units. The small plex or 2-4-unit category saw their SAAR fall by almost 44% from last month to 18,000 units, bringing total residential starts down 9.8% from December to 1.366 million units. Compared to one year ago, the SAAR for multifamily starts was up slightly (2.3%), while single-family dipped 1.8% and plexes were unchanged. Residential permitting is more forward looking, and the trends indicate a continuing decline in multifamily construction and a level to upward trend in single-family development. January’s 12-month total (not seasonally adjusted) for multifamily permits declined 17.4% to 431,400 units, while annual single-family permits through January totaled 977,200 units, up 3.7% from last year. Annualized multifamily permitting was virtually unchanged from last year at 427,000 units but was down 1.4% from 2024’s total. Single-family permitting was down 3.4% from last January and unchanged from December at 996,000 units. The SAAR for completions was up from last January by 8.9% for single-family homes (to 982,000 units) and up 11.8% for multifamily (to 652,000 units). Both were up 7% to 10% month-to-month. There were 22.5% fewer multifamily units under construction than one year ago (751,000 units) and single-family units under construction were down 6.3% at 641,000 units. @include('site.elements.media.image', ['fileId' => 31002, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '406']]) Compared to one year ago, the annual rate for multifamily permitting increased sharply in the South region (up 22.2% to 219,000 units) and fell about as much in the West region (down 23.6% to 72,000...

Apartment Permitting in Southeast Drops from Recent Highs

2025-03-06T02:00:03-06:00

Apartment completions in the Southeast region of the U.S. hit a record high in 2024, but multifamily permit totals suggest fewer additions moving forward. In 2024, a record high of around 50,000 new apartments delivered in the Southeast, which was a 22% jump from 2023’s completion tally, which was also a record at the time. These peak deliveries weren’t just located in major apartment markets across the region, such as Atlanta and Nashville, but also filtered into smaller markets like Huntsville and Memphis. However, peak supply may be a thing of the past, as evidenced by permit volumes. Multifamily permits act as a forerunner to apartment deliveries, as developers filing applications today will typically break ground within a few months. It’s important to note, then, that permit volumes in Southeast markets have been declining since the peak in 2023. In calendar 2024, just over 24,000 multifamily permits were issued, translating to a 25% drop from the 2023 volume and a 15% decline from 2022 levels. To be fair, calendar 2024 permit volumes were still ahead of historical norms for the Southeast, but the steady decline is a clear indication that the peak supply from 2024 is not scheduled to repeat in 2025. For more information on the state of the Southeast region apartment markets, including forecasts, watch the webcast Market Intelligence: Q1 Southeast Update & 2025 Outlook.

Reno Apartment Demand Hits 23-Year High

2025-02-28T02:00:03-06:00

Annual demand in Reno reached a 23-year high in 2024. Demand for 2,451 units nearly kept pace with new supply (2,597 units) over the 12-month period, according to data from RealPage Market Analytics. Since 2020, the existing unit count in Reno has climbed nearly 20% to about 53,000 units. In turn, renters in this small Nevada market have shown an appetite for new units. In the five-years prior to COVID, annual demand averaged just 914 units per year. In contrast, annual demand averaged around 1,400 units per year over the last five years. To support demand, population in Reno grew 9.1% from 2018 to 2023 to roughly 495,900 people. As of 2023, young adults made up 21.3% of Reno’s total population, according to the U.S. Census Bureau. That rate was above the national norm of 20.2%. Additionally, job growth averaged 1.9% over the past five years but slowed in 2024 to roughly 0.8% as of December 2024. Reno sits within a fifty-mile radius of Lake Tahoe and the largest concentration of ski facilities in the world along the Nevada-California border.

Five West Region Markets with Rents Below U.S. Norm

2026-03-04T06:52:59-06:00

Out of the 14 major markets in the West region of the U.S., only five have rents below the U.S. average. In January, effective asking rents across the nation averaged at $1,818 monthly, according to data from RealPage Market Analytics. While markets with more affordable prices than that are mostly in the South and Midwest regions of the country, a few West region markets are also included, as is one in the Northeast (Pittsburgh). West region markets commanded monthly rents at an average of $2,209 in January. Markets that heavily skew the region with big price tags include San Francisco and San Jose, where average rents stand north of the $3,000-mark. But on the other hand, five markets brought down the West region average, with prices at or below $1,800. @include('site.elements.media.image', ['fileId' => 30919, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Las Vegas logged the lowest apartment rents in the West region, with prices at $1,439 in January. This was similar to monthly rates in South region markets Jacksonville ($1,436) and Austin ($1,460). It’s typical for Las Vegas to trail U.S. norms. Over the course of the past decade, Las Vegas rents have come in roughly $328 below U.S. rate, on average. It should be noted, however, that prices in Las Vegas as of January 20205 are still well ahead of where they were a decade ago. The effective rate from January 2015 ($789) was a little more than half of January 2025's price. @include('site.elements.media.image', ['fileId' => 30918, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Phoenix prices also typically rank behind the U.S. norm. However, in 2021 and 2022, price hikes in Phoenix pushed rates very close to the U.S. average. More recently, rent cuts have pulled prices back down in Phoenix, landing at $1,504 in January. Still, that’s well ahead of prices of $814 from January 2015. Inspiring recent rent cuts, occupancy in Phoenix has also come down in recen...

Cost to Own Skyrockets Above Average Rent

2026-03-04T06:52:59-06:00

For decades, the American dream revolved around doing what you loved and owning a home. While millions of Americans achieved this vision, the latter part of the dream remained out of reach for many others. The Great Financial Crisis exacerbated the divide, and the recent pandemic further deepened these disparities. An analysis of historical data reveals that although rents have risen in recent years, they remain far below the skyrocketing costs of purchasing and maintaining a home. Average hourly earnings in the U.S. grew at an average annual rate of 3.1% between 2010 and 2024, according to the Bureau of Labor Statistics. However, during the same time period, the median price of an existing single-family home rose much faster at an average annual rate of 6.7%, according to the National Association of Realtors, more than double the pace of wage growth. By the end of 2024, the median home price had reached approximately $418,000, nearly doubling from $212,000 in 2014. Over the same period, average hourly earnings rose by about 45%, which, while significant, still lagged the sharp rise in home prices. Notably, since the start of the pandemic in early 2020, median home prices have surged by nearly 47%, outpacing total wage growth over the same timeframe. The widening gap between home prices and wages is reflected in the median home price-to-income ratio, a key measure of housing affordability that compares the median home price to median household income. To calculate this ratio, we divided the median sales price of houses (as reported by the Department of Housing and Urban Development) by the median household income (from the Census Bureau). In 2019, the ratio was 4.7, but it surged to 5.8 in 2022 before easing to 5.3 in 2023. Even with this decline, the 2023 ratio remained nearly 14% higher than pre-pandemic levels, indicating that home prices have continued to rise faster than incomes. @include('site.elements.media.image', ['fileId' => 30911, 'attributes' => ['bor...

Average Vacant Days Climbs Above Pre-Pandemic Level

2025-02-21T02:00:03-06:00

With the delivery of more than one million new market-rate multifamily units over the last two years, renters now have more options to choose from than ever before. That has softened occupancy rates and resulted in units sitting vacant for longer. The average number of days a stabilized unit sits vacant before a new tenant moves in is nearly five days longer than it was on average in the five years prior to 2020, according to RealPage Market Analytics. In other words, it is taking significantly longer to lease an available unit than it did pre-COVID, despite record levels of apartment demand. Nationwide, average vacant days hovered at 34.4 at the end of 2024, compared to about 30 in early 2020.The variance to historic levels may seem miniscule, but extended vacancy works out to an additional $275 per unit in expenses and turnover costs (based on current average. U.S. effective rent of $1,818 as of January 2025). With more than half a million stabilized units unoccupied, the additional impact to property operations quickly adds up.

Five Apartment Communities Sell for Roughly $250 Million or More in 2024

2026-03-04T06:52:59-06:00

Following record-setting sales in 2021 and 2022, investments in U.S. apartments plummeted in 2023 amid the rising cost of debt and economic uncertainty. However, sales picked back up in 2024. During the year, five apartment communities changed hands for roughly $250 million or more. @include('site.elements.media.image', ['fileId' => 30652, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) A total of 5,700 apartment properties changed hands across the U.S. at a value of nearly $146 billion during 2024, according to data from MSCI Real Capital Analytics. The overall sales volume in 2024 was up 22% year-over-year, but well below the record-setting sales that averaged $332 billion per year in 2021 and 2022, when a total of about 25,000 properties changed hands as the result of pent-up demand following the onset of the pandemic. @include('site.elements.media.image', ['fileId' => 30685, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Recent activity was also below the $169 billion annual average logged during the five years leading up to the pandemic (2015-2019). The average price per unit was up 3.8% year-over-year, registering at $211,474 in 2024. While that was one of the lowest levels since 2020, it was well above the per unit pricing from 2015 to 2019 which averaged $151,000. Meanwhile, cap rates for apartment transactions in 2024 were up 24 basis points (bps) year-over-year, averaging 5.57%. That was the highest cap rate in eight years. Still, apartment cap rates during 2024 remained the lowest among major property types, keeping the asset class an attractive commercial real estate investment. The five largest single-asset market-rate apartment transactions during 2024 sold for roughly $250 million or more, with all of these occurring along the East and West coasts. @include('site.elements.media.image', ['fileId' => 30664, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) 20 Exchange Pl...

How Elections Impact Lease Renewals in Washington, DC

2025-02-20T02:00:03-06:00

Election season in Washington, DC doesn't just shape the nation's future – it influences the market's rental housing in subtle yet significant ways. Analyzing monthly data from RealPage Market Analytics between 2010 and 2024 reveals that tenant behavior shifts around election times, offering valuable insights for apartment investors and property managers. During presidential election years, the percentage of renters renewing their leases tends to fluctuate. Notably, there's often a slight dip in renewal rates leading up to elections, likely due to resident uncertainty or an anticipation of administration change. This was observed leading up to election day in 2016 and 2024, when fewer residents elected to stay in place at lease expiration. Conversely, post-election months typically see an uptick in renewals. After the 2016 election, renewal rates increased by roughly 2% from November to January. This pattern suggests that tenants favor stability once the political landscape becomes clearer. Understanding these trends allows property managers and investors to strategize effectively. Offering flexible lease terms or renewal incentives during these periods can align with tenant preferences to optimize performance.

Job Growth No Longer Chief Predictor of Apartment Rent Growth

2026-03-04T06:52:59-06:00

Job growth is generally seen as the primary driver of apartment fundamentals, particularly rent growth and demand. While that has been the case in the past, job gains are no longer the gold standard for predicting apartment rent growth. Throughout the 2010s-decade, cumulative job growth (as a ratio of gains) positively correlated with cumulative rent growth. In other words, the more jobs a market added, the more apartment rents subsequently grew in that market. @include('site.elements.media.image', ['fileId' => 30637, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Fast forward to the 2020s decade and that correlation is less strong. Job gains now have a less direct relationship with apartment rent growth, compared to previous cycles. Since 2020, job growth as a predictor of rent growth has been far less effective. There’s a bit of positive trendline that indicates job growth translates to some rent growth, but the slope of that line is far less steep. And equally important, the relationship between the two variables isn’t much more than random. @include('site.elements.media.image', ['fileId' => 30644, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) In a post-pandemic world where employees – especially highly educated, high earning employees – are more likely to work remotely, a given market’s job gains might be irrelevant to where those employees choose to live. Additionally, job gains have been more heavily concentrated in lower and middle earning sectors, such as Education and Health Services, Government and Leisure and Hospitality (the lowest wage sectors, as tracked by the Bureau of Labor Statistics). @include('site.elements.media.image', ['fileId' => 30639, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Sectors such as Education and Government tend to be lower risk and more recession-proof, but also lack the earning power seen in other white-collar sectors such as Information...

U.S. Begins 2025 With a Slowdown in Hiring

2025-02-21T02:00:03-06:00

U.S. employers eased up on hiring recently. Employers added roughly 143,000 workers to payrolls in January 2025, according to a survey of businesses by the Bureau of Labor Statistics. Those additions were well below the upwardly revised 307,000 jobs added in December and under the 170,000 job additions expected by economists for January. Still, the U.S. economy has added jobs for 49 consecutive months, the second-longest period of job base expansion on record dating back to 1939. Job growth in January was concentrated in Education/Health Servies (+61,000 jobs), Trade/Transportation/Utilities (+38,000 jobs) and Government (+32,000 jobs), while Professional/Business Services (-11,000 jobs), Mining/Logging (-7,000 jobs) and Leisure/Hospitality Services (-3,000 jobs) were the only major industries to lose jobs during the month. For the year-ending January 2025, employers added roughly 2 million jobs or an average 168,000 jobs a month. Meanwhile, the unemployment rate (U3 or headline unemployment rate, which is seasonally adjusted, and is a survey of households) has fallen for two consecutive months, registering at an eight-month low of 4% in January. This post is part of a series analyzing employment data from the Bureau of Labor Statistics. For more on this data, read previous posts on Job Growth.

January Rent Growth Nears Normal, But Not There Yet

2026-03-04T06:52:59-06:00

Apartment rents grew at a near-normal rate in January, following seasonally typical rent cuts in the final months of 2024. January’s rate of rent growth still fell below long-term norms, however, but the marginal growth that was achieved further bolstered the thesis that the most severe rent cuts have already come to pass. Apartment rents in market rate units grew 0.16% in January, according to data from RealPage Market Analytics. That rate fell slightly below the long-term norm for January rent growth of 0.24% from 2015 to 2024. Still, that 8-basis point delta is within a rounding difference, suggesting that rent change will continue to look more regular by historical standards as we move throughout 2025. @include('site.elements.media.image', ['fileId' => 30713, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Notably, two regions of the U.S. logged January rent growth above their long-term norms. In the lower-supplied Midwest and Northeast regions, January 2025 rent growth of 0.31% and 0.24%, respectively, ran less than 10 bps above their 10-year averages. In the West region, January 2025 rent growth of 0.11% registered below the long-term norm of 0.28%. The supply-heavy South region posted January 2025 rent growth of 0.12%, about half the long-term average of 0.24%. On an annual basis, rents in professionally managed market-rate apartments grew 0.6% in the year-ending January 2025. This rate still stood well below long-term norms. Regionally, only the South continued to cut rents on an annual basis (-0.8%), while near negligible growth was recorded in the West region (0.2%). The Midwest (2.9%) and the Northeast (2.7%) posted the highest rent growth in the nation. @include('site.elements.media.image', ['fileId' => 30720, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '1233']]) Across the U.S., annual rent change varied widely. Rents continued to grow at the fastest clip in lower-supplied, mostly Midwest markets. Det...

Small Market Rent Growth Outperforms Larger Metros

2025-12-04T08:09:00-06:00

For the past year and a half, smaller apartment markets have garnered stronger rent growth than their large market counterparts. At the end of 2024, the annual change in effective asking rents among the nation’s largest 50 apartment markets (except New York, which would throw off the weighted average if included) registered essentially flat at just 0.1%. Among smaller markets with an apartment base of about 24,000 units (which includes the likes of Fort Collins, CO and Salinas, CA) to just over 100,000 units (as in Providence, RI and Oklahoma City, OK), rent growth was considerably stronger at 1.4%. This trend has been consistent since about mid-2023. While stronger rent growth among smaller markets can be inspired by lower inventory growth rates, the more likely scenario is that these markets are less likely to see drastic fluctuations in performance. Smaller markets display more resilience during hard times, missing the declines seen in bigger markets. At the same time, smaller locales don’t benefit from the same upside as larger markets during good times, either.

Highest Earning, Educated Workers Most Likely to Work Remote

2025-02-05T02:00:04-06:00

The more income a person makes and the higher educated they are, the more likely they are to work from home, according to 2023 data from the Bureau of Labor Statistics and U.S. Census Bureau. The highest educated workers – those with a bachelor’s degree or higher – reported both the highest incomes and the highest likelihood to work from home. In 2023, this cohort of employed people earned just shy of $90,000 per year, on average, and over 50% reported they worked remotely. Those with some college earned on average about $57,000 per year in 2023 and about 27% of this cohort worked remotely. Employed people with a high school degree, but no college had median earnings of nearly $49,000 per year in 2023 and only a 22% likelihood to work from home. Those with no high school diploma had median earnings of $37,000 per year in 2023 and only an 11% likelihood to work from home.

Our Chief Economist’s Takeaways from NMHC’s Annual Meeting

2025-02-17T02:00:03-06:00

National Multifamily Housing Council’s annual conference was held the final week of January in Las Vegas. Conference sessions ranged from the macro, including a macroeconomic outlook with Justin Wolfers, Professor of Public Policy and Economics at the University of Michigan and a fireside chat with Henry Paulson, former Secretary of the Treasury, to the micro with lots of focus on artificial intelligence and real estate technology. Summarizing a three-day agenda across such a breadth of topics with just a few hundred words can only achieve so much, but here is our attempt to recap the multifamily industry’s Super Bowl conference. Key Theme #1: Risk is out there, and it comes in all shapes and sizes. I talked to many people between sessions this year and risk seemed the biggest undercurrent of the conference. Risk of loan maturities in 2025, risk of policy and legislative shifts, risk of interest rates holding above last cycle norms, and more. And certainly not omitted from the discussion was the risks (or perhaps more accurately, the unknowns related to scale and impact) of President Trump’s campaign promises surrounding tariffs and immigration reform, in particular. But one thing that stood out to me is that all of these discussed risks – plus many more – weren’t necessarily offered from a pessimistic perspective. Rather, it was a very grounded perspective that acknowledged the risks in the market while also not deterring optimism for the sector’s long-term investment theses… which ties into key theme #2. Key Theme #2: The multifamily investment thesis remains strong, but don’t expect the floodgates to open in 2025. Compared to 2023 and 2024, this year’s NMHC conference was arguably the most optimistic. Many of the unknowns a la 2023 and 2024 are now in the rearview. For instance, 2023’s conference came off the heels of a four-decade peak in inflation. Further, the industry had just recorded it...

South Region Logs Nearly 370,000 More Occupied Apartment Units in 2024

2025-02-07T02:00:03-06:00

The South region of the U.S. absorbed an incredible volume of apartment units in calendar 2024, translating to an additional 369,533 units occupied regionwide. Occupied units marks a slight deviation from absorption as it accounts for both vacancy and any units removed from stock. In January 2024, the South region – anchored by markets including Houston, Dallas and Atlanta – had approximately 8.1 million apartment units. Of those, 93.1% were occupied. By December, massive volumes of new supply delivering across the region buoyed existing inventory to 8.4 million units, according to data from RealPage Market Analytics. Roughly 5,000 apartment units were removed from stock across the South in 2024. Additionally, South region occupancy ticked up to stand at 94% by December. That translated to the largest increase in occupied units among U.S. regions, far outpacing the West region’s 159,000 additionally occupied units. Meanwhile, the Midwest logged an additional 76,000 occupied units and the Northeast (which is also the smallest region nationally) added 58,000 occupied units in 2024.

Three Effects of Peak Supply on the U.S. Apartment Market

2026-03-04T06:52:59-06:00

The U.S. hit peak apartment supply volumes in calendar 2024 when a record 588,900 units were delivered. While supply is scheduled to taper off in the near term, deliveries won’t get back to historically normal levels until at least mid-2026 – notwithstanding disruptions or delays in the near term. @include('site.elements.media.image', ['fileId' => 30525, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) With so much new apartment supply hitting the market, the effects have been noticeable. Let’s explore three key impacts on the U.S. apartment market as a result of peak supply volumes. 1. It’s taking longer for properties in lease-up to reach stabilization. As of the end of 2024, conventional properties going through initial lease-up were taking about 16 months to reach stabilization, which RealPage Market Analytics defines as reaching 85% occupancy or higher. Just a few years ago, in 2019, properties in the initial lease-up phase were taking an average of 12 months to stabilize. That can significantly impact the bottom line for owners and operators. It’s also not a surprising impact, given the sheer volume of competition coming online in recent years. @include('site.elements.media.image', ['fileId' => 30524, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) 2. Turnover has decreased as operators have focused on holding onto residents. One winning strategy operators have seized on is focusing on occupancy preservation for existing residents. In other words, operators are renewing leases – at varied rates – in order to keep residents from moving to a competing property. At the end of 2024, the 12-month moving average renewal rates were at 54.5%. This was well ahead of the long-term average from the decade leading up to the COVID-19 pandemic (2010-2019) and well ahead of U.S. retention rates from the end of 2023 (53%). @include('site.elements.media.image', ['fileId' => 30529, 'attributes' => ['border' => '0', 'wid...

December Jobs: Annual Gains Continue Slowing for Top Metros

2026-03-04T06:52:59-06:00

Employment gains at the metro level appear to be leveling out based on the latest data from the Bureau of Labor Statistics. The combined total for jobs gained in 2024 among the top 10 of RealPage’s top 150 markets decreased by 40,600 jobs from 2023 (totaling 470,600 as of December 2024). However, December’s total was 20,500 jobs greater than their combined 12-month total from November, indicating some seasonal gain in the not seasonally adjusted data. New York’s dominance nationally for employment gains continued in December with 104,700 jobs added to local payrolls in 2024. @include('site.elements.media.image', ['fileId' => 30523, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '685']]) The first eight of December’s top 10 list returned from November but a few changed places. Houston retained the #2 spot while Dallas and Los Angeles traded places at #3 and #4. Phoenix fell from #5 in November to #8 this month, allowing Philadelphia, Washington, DC and Charlotte to move up one spot each on December’s top 10 list. Salt Lake City and Atlanta joined the top 10 this month with Atlanta jumping from #30 in November to #10 with strong employment improvement in several industries, particularly in trade, transportation and warehousing and information. The next 10 markets (#11-#20) of RealPage’s top job gain markets saw their total gains increase 4.9% to total 229,100 new jobs, less than half the total for the top 10 markets. Like last month, only New York exceeded 100,000 jobs gained for the year and only one gained between 50,000 and 99,999 jobs (Houston). Thirteen of our top 150 markets reported annual job losses for the year, one more than last month. Major markets reporting annual job losses include Columbus, OH, San Francisco, Minneapolis-St. Paul, Milwaukee, Chicago and Memphis. Job Growth Unlike the top job gain markets, which tend to be large in population and employment, smaller markets usually dominate the top markets for annual percentage...

Construction Activity is Lacking in These 10 Apartment Markets

2025-01-29T13:55:01-06:00

While apartment deliveries across the U.S. have been soaring, apartment construction activity has trended downward for nearly two years. Even so, the roughly 654,000 units under construction at the end of 2024 was nearly double the long-term average. But there were 10 markets out of the nation’s 150 largest that had no conventional properties with five or more units underway at the end of the year, according to data from RealPage Market Analytics. Four of those markets were in the South region: Columbus, GA-AL, Jackson, MS and West Texas markets Lubbock and Midland/Odessa. Three Midwest markets had no conventional stock underway at the end of 2024: Champaign-Urbana, IL, Lansing-East Lansing, MI and Youngstown-Warren-Boardman, OH-PA. Wrapping up the list were West region markets Fresno, CA and Urban Honolulu, HI and Northeast market Springfield, MA. The lack of construction activity is notable because many markets across the country saw deliveries peak in 2024, while some are expected to reach peak levels in 2025. Out of the 10 markets without construction underway, four also didn’t see any new deliveries in calendar 2024: Lansing, Midland/Odessa, Urban Honolulu and Youngstown. In fact, during the nation’s supply wave that began in early 2023, Urban Honolulu and Youngstown haven’t seen any new apartments deliver. Only three other markets haven’t delivered supply during the latest supply wave, including Bakersfield, CA, Flint, MI and Shreveport-Bossier City, LA. But those three markets have at least some product currently underway.

New York’s Multifamily Permitting Surged in 2024

2026-03-04T06:52:59-06:00

While most markets nationwide saw declines in multifamily permit volumes in calendar 2024, New York logged a big jump. New York tends to rank as the market leader for nationwide permitting, but this recent surge pushed the market notably ahead of other locales. Annual multifamily permits in the New York-White Plains metro division shot up by 77% in 2024 to 37,406 units for an increase of 16,268 units, according to the latest data from the U.S. Census Bureau. Meanwhile, the majority of RealPage’s top 150 markets had annual declines in their multifamily permit totals compared to 2023. Ninety-one of the top 150 metro markets had decreases ranging from a negligible 0.3% in Seattle to declines of 50% to 60% in such markets as Indianapolis, San Jose, Salt Lake City and Riverside. Additionally, only six markets permitted 10,000 or more multifamily units in 2024 compared to 13 markets in 2023. Nine of the top 10 markets from November’s list returned in December with six markets remaining in order. @include('site.elements.media.image', ['fileId' => 30448, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '685']]) After New York, Austin continues to be a leader for multifamily construction, but their momentum is slowing with a decrease of almost 30% from December 2023. Dallas moved up from #5 last month to #3 in December with a month-over-month increase of 1,658 units, but their 2024 total of 14,257 units is down almost 3,100 units from 2023. Atlanta was almost unchanged from last year and remained in the #4 spot again, while Phoenix dropped to #5 and had the second-deepest decrease in units permitted from last year among the top 10 after Austin. Houston, Washington, DC, Los Angeles and Fort Worth remained in their previous spots from November’s top 10 list, and each had 20% to 30% decreases in annual permitting, with the exception of Fort Worth, which jumped 81% from last year to 8,665 units. Seattle moved up from #13 to #10 on December’s top 10 list...

Apartment Supply in Central Nashville Nearly Triples

2025-02-07T02:00:03-06:00

In a time when U.S. apartment supply volumes have been booming, Nashville has shined as a leader for completions. And driving big apartment inventory growth in Nashville has been the Central Nashville submarket. In fact, Central Nashville has spent the past decade becoming the market hub for new apartment supply. Back at the end of 2014, Central Nashville had nearly 12,900 existing units, ranking behind Murfreesboro/Smyrna, North Nashville and South Nashville for total apartment stock. Five years later, by the end of 2019, Central Nashville had nearly doubled that base, ranking as the market’s second-largest submarket, behind only Murfreesboro/Smyrna. In the last five years, between 2019 and 2024, Central Nashville outpaced all other submarkets for new supply and is now nearly 20% bigger than any other submarket in Music City, with 34,614 units of conventional apartment stock, according to data from RealPage Market Analytics. That’s about 21,700 units more than the submarket had 10 years ago, translating to an increase of 168.5% in the decade. Nationwide, only four other submarkets have seen more growth. Dallas’ Frisco and Rockwall/Rowlett/Wylie submarkets grew by more than 230% in the past 10 years, while Boise’s Nampa/Meridian/Caldwell neighborhood increased 211% and Washington, DC’s Navy Yard/Capitol South submarket grew 193%.

Apartment Occupancy Returns to Historically Normal Levels at End of 2024

2026-03-04T06:52:59-06:00

Despite suffering a dip recently, apartment occupancy ended 2024 closer to historically normal levels. The U.S. apartment market delivered a record volume of apartment supply in 2024. This influx of deliveries pushed occupancy down to a recent low of 94.1% in early 2024. However, demand also rebounded significantly during the year, and caught up to record supply by the end of 2024, helping occupancy bounce back up to end the year at 94.8%. This rate was in line with the U.S. apartment market’s long-term norm from the 2010’s decade (94.8%) and the more recent average from 2015 through 2019 (95.2%), according to data from RealPage Market Analytics. @include('site.elements.media.image', ['fileId' => 30400, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Driving much of the occupancy rebound in conventional apartment stock in 2024 was the performance in Class B stock. As of the end of 2024, Class B stock – the largest product class – overtook Class C units to become the tightest asset class. Historically, in the 2010s and through the early pandemic period, it was normal for Class C units to be the most occupied product class. But occupancy in Class C stock ended 2024 at 95%, ahead of Class C (94.8%) and Class A (94.5%) units. @include('site.elements.media.image', ['fileId' => 30399, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) While all three asset classes are registered occupancy behind their averages from the five years leading up to the pandemic, improvement in the past year specifically was notable across the board. Again, Class B units led the charge with a meaningful occupancy increase of 80 basis points (bps) in calendar 2024, while Class A and C units logged growth of 50 bps each in the year. Roughly half the existing apartment base nationwide is comprised of Class B units, compared to roughly a quarter each in Class A and Class C stock. So, it’s clear why improvement in Class B stock would boost over...

Five Wild Card Markets for 2025

2025-02-03T02:00:03-06:00

Not all markets fit into a neat category of market profiles. Some markets could exhibit a wider range of possible performance outcomes in 2025. Consider five such markets. Columbus Within the historically quiet Midwest, Columbus is a growing investor hotspot. But a recent surge of investment has brought with it spike in new supply as the market grows its existing supply base by nearly 4% in 2025, or some 8,200 units, according to data from RealPage Market Analytics. Though that’s not a huge ratio relative to some Sun Belt markets, it will be enough to test the depth of demand in the near term. Further, Columbus’s peak supply (in late 2025) is among the nation’s latest peak periods. It may be worth monitoring rent growth in the next few months here relative to supply levels. Denver Denver enters 2025 recording annual rent cuts of roughly 3.5%, seventh-deepest cuts among top 50 U.S. markets. Denver is also a few months out from its supply peak, which will see the addition of some 6.5% of existing inventory. The unknown here, however, is whether demand may finally be improving as the market recorded its strongest annual job growth reading (nearly 1% in December 2024) since October 2023. Jacksonville Jacksonville saw rent cuts approach 6% on a year-over-year basis in summer 2024, flirting with the nation’s weakest reading at that point in time. Recently, the market has shown signs of stabilization though, and with peak trailing 12-month supply in the rearview mirror, Jacksonville could begin to work its way up from the bottom of the list in 2025. Stubbornly low occupancy (remaining below 94%) will work against the market in 2025, though 2025 inventory growth (about 3%) comes in well below peak inventory growth seen in 3rd quarter 2024 of 6.5%. Nashville Massive supply would seemingly put Nashville’s in the same bucket as Austin, Charlotte, Phoenix, etc. But Nashville market supply effectively peaked at the end of 2024 with jus...

U.S. Logs Seven Quarters of Record Apartment Supply Volumes

2026-03-04T06:52:59-06:00

The U.S. apartment market has now logged seven consecutive quarters of record supply, with the last three quarters of 2024 seeing especially significant deliveries. Quarterly completion volumes broke past the 100,000-unit mark in 2nd quarter 2023 for the first time since RealPage Market Analytics began tracking the market in the early 1990s. Since then, delivery totals have increased nearly every quarter. In 2024’s 3rd quarter, the U.S. logged completion of over 160,400 units, the biggest quarterly volume on record. Another 155,400 units wrapped up in the final three months of the year. The completion volumes from these last two quarters of 2024 nearly doubled the 10-year quarterly supply average of about 89,700 units. And this decade has been a significant one for apartment construction activity. In the decade before this one (2004-2014), quarterly completions averaged just 36,200 units. @include('site.elements.media.image', ['fileId' => 30193, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) New apartment supply volumes have been especially significant in the South region of the U.S. Over 89,100 units completed in the South during the final three months of 2024. The West has also seen an upturn in supply, with over 36,100 units delivered in 4th quarter. In both regions, 4th quarter supply was just a shade below record-high showings from 2024’s 3rd quarter. More mild deliveries were seen in the Midwest (15,500 units) and Northeast (14,600 units) in 4th quarter 2024. Still, that was a record showing for the Northeast region. The Midwest pace, however, was a bit behind the region’s highest quarterly tally from 4th quarter 2023. Across the U.S., every quarter in 2024 saw record volumes compared to recent years. As a result, U.S. supply hit a 50-year high in the calendar year. @include('site.elements.media.image', ['fileId' => 30194, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Markets seeing the most new de...

Huntsville Apartment Supply Rivals Much Bigger Markets

2025-01-31T02:00:03-06:00

A small Alabama market is growing fast, ranking among the nation’s largest apartment markets for total new supply additions in the past year. Apartment deliveries in Huntsville totaled 7,097 units in calendar 2024, which was well ahead of historical norms for this market and swelled the existing unit base by 17.4% – easily the biggest increase nationwide. But what’s even more telling is that this market ranked 24th among the nation’s largest 150 apartment markets for completions in the past year. That’s a ranking usually reserved for one of the nation’s top 50 markets. And the two markets next to Huntsville on that list – Boston at #23 and Los Angeles at #25 – are obviously much bigger. For perspective, Huntsville had about 47,800 market-rate apartment units at the end of 2024. Boston is about nine times bigger than that, while Los Angeles is roughly 24 times the size of Huntsville. Driving the demand for new housing in Huntsville is a unique economy based in the Government and Professional/Business Services sectors, as the market is home to the U.S. Army’s Redstone Arsenal and NASA’s Marshall Space Flight Center. Taking a longer time horizon, Huntsville’s apartment supply has been climbing at one of the fastest rates nationwide since about 2022.

Front Half of Student Housing Pre-Lease Season Shines, While Back Half Slumps

2026-03-04T06:52:59-06:00

Reflecting on the Fall 2024 in student housing data shows a stark contrast between the front half of the pre-lease season compared to the back half. From September to February, roughly half of the pre-lease season, student housing beds were being leased at essentially the fastest pace on record. From March to August, on the other hand, pre-leasing slumped to basically the slowest pace on record, according to data from RealPage Market Analytics. @include('site.elements.media.image', ['fileId' => 30160, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) In February 2024, RealPage was reporting a leasing schedule that was on pace with the fastest velocity on record. At that time, pre-lease velocity was easily ahead of the long-term average. But a strong first half of the season means there are fewer beds to be leased in the back half, and that’s exactly what happened. Indeed, Fall 2024 saw the slowest final six-month window on record, even including the 2020 pandemic year. In short, moderation began quite rapidly in the back half of Fall 2024. At the same time, conventional housing occupancy began to bottom out, suggesting that students had more conventional and student competitive (also called shadow market) options to shop as well. Looking ahead, the pace of deceleration we saw in the second half of 2024 will likely be far less drastic in Fall 2025. Yesterday’s moderation is tomorrow’s stabilization.

Multifamily Starts Appear to Jump in December

2026-03-04T06:52:59-06:00

Compared to November, the seasonally adjusted annual rate (SAAR) for multifamily starts surged 58.9% in December to 418,000 units, according to the latest report from the U.S. Census Bureau and the Department of Housing and Urban Development. However, looking at the starts data that is not seasonally adjusted, 2024’s total for multifamily starts of 336,600 units is down very slightly from the 12-month total in November (-0.8%). Comparing annual changes, seasonally adjusted starts are down 11.3% from 2023, while the unadjusted total is 26.6% less than 2023 starts. When viewed together, the annualized seasonally adjusted total and the 12-month moving not seasonally adjusted annual total for multifamily starts show the wild volatility of the seasonally adjusted figures. We made this comparison last month for multifamily permitting volatility as well, however, December’s SAAR for multifamily permitting of 437,000 units (down 5.8% for the month and 5.4% for the year) is very close to the 2024 total for unadjusted permits of 435,600 units. December’s SAAR for single-family starts of 1.05 million homes was up 3.3% from November but down 2.6% for the year. Similarly, permitting increased 1.6% from last month to 992,000 homes, down 2.5% from 2023. The SAARs for both experienced the same volatility as is seen on the multifamily side. The SAAR for completions was down from last December by 7.4% for single-family homes (to 948,000 units) but up 9.4% for multifamily (to 570,000 units). Continuing to reflect the apparent slowing in residential construction, there were 21.5% fewer multifamily units under construction than one year ago (773,000 units) and single-family units under construction were down 5.3% at 641,000 units. @include('site.elements.media.image', ['fileId' => 30156, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '407']]) Compared to one year ago, the annual rate for multifamily permitting increased moderately in the Northeast region (up 11...

Apartment Rent Growth Expectations at the Market Level for 2025

2026-03-04T06:52:59-06:00

While apartment rent growth is expected to pick up in the coming year – while still trailing previous decade norms under the weight of new supply – market-level expectations vary based on many factors. Generally speaking, rent growth expectations in 2025 at a market-level can be split into a few categories. @include('site.elements.media.image', ['fileId' => 30130, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) @include('site.elements.media.image', ['fileId' => 30123, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '466']]) Markets Expected to Outpace the U.S. Average in 2025 1. Markets with Minimal-to-Modest Supply Pressure and Stable Demand Chicago, Cincinnati, Indianapolis, Kansas City, Pittsburgh, Richmond and Virginia Beach Markets that fit within this bucket can largely be classified as slow-and-steady. This overlaps with markets spanning across the Midwest and Northeast/Mid-Atlantic regions. These metro areas are generally expected to see little (if any) supply pressure going into 2025 while their local economies churn out a slow (yet steady) stream of apartment demand. Markets within this tranche will likely see rent growth hold around otherwise historically normal levels, ranging between 3% to 4%. 2. Gateway/Gateway-Adjacent Markets Where Occupancy Supports Historically Normal Rent Growth Boston, Inland Empire (Riverside), Newark (Jersey City), Orange County (Anaheim), San Francisco/San Jose, Seattle and Washington, DC After a tumultuous few years characterized by outbound migration and sluggish urban core leasing activity, most coastal Gateway markets appear to be back on level footing, nearing their previous decade occupancy norms. Many of these markets are near (if not slightly past) their local supply peaks as well, which suggests that demand should soon begin to outpace supply. As such, these markets should begin to see locally tight occupancy readings to support rent growth in-line with previous deca...

San Jose Apartment Supply Picks Up Ahead of San Francisco and Oakland

2025-01-29T02:00:03-06:00

Apartment inventory growth slowed down in calendar 2024 in Oakland. Oakland added 2,751 new apartment units in calendar 2024, according to data from RealPage Market Analytics. These completions grew the Oakland inventory base by a modest 0.9%. Inventory growth was similar in San Francisco (0.9%), which typically runs notably below inventory growth in Oakland. San Jose, on the other hand, saw a more significant bump of 1.7% in calendar 2024. Meanwhile, the U.S. average inventory growth in the past year was more aggressive than all three Bay Area markets at 3%. Not surprisingly, Oakland supply volumes were greatest in the past year in the Oakland/Berkeley submarket, which is the closest to San Francisco, supporting commuters looking for a more economical option. Looking further back, in the past ten years, apartment inventory has grown about 19.5% in San Jose over the last decade, roughly matching the U.S. norm of 21%. Oakland’s total apartment inventory has grown 12.6% in the last decade, compared to San Francisco’s 10.3% inventory growth. In 2025, San Jose it set to add nearly 4,000 apartment units, accounting for a 2.2% increase to total apartment inventory. San Francisco and Oakland will grow more modestly, adding about 1,300 and 1,200 units, respectively, in 2025.

2025 Expectations for the U.S. Apartment Market

2026-03-04T06:52:59-06:00

Demand for apartments in 2025 is expected to remain solid – if not excellent – based on 2024 readings. Continued job growth, strong wage growth, improving affordability, improved consumer sentiment, near-record resident retention and fewer move-outs to the single-family for-purchase market colored the 2024 market landscape. These things appear likely to persist well into 2025. Supply is also forecast to remain well above historically normal levels as well, though the 2025 forecast suggests that supply should quickly taper off towards the back half of the year. This can already be seen at a more localized metro level, for example, whereby several markets hit peak supply in late 2024. Still, the calendar 2025 should see the addition of another 500,000-plus market-rate multifamily units, according to RealPage Market Analytics. That will influence near-term market expectations. @include('site.elements.media.image', ['fileId' => 30056, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Occupancy improved throughout 2024 despite immense supply pressure – yet another testament to the depth of demand for market-rate multifamily rentals. An expectation of continued, strong demand while the pace of new deliveries finally leveling off (if not altogether decelerating in some markets) suggests that occupancy should soon begin to re-approach more historically-normal levels (in the low-to-mid-95% range) in 2025. Rent growth for the nation in 2025 is expected to trail previous decade norms as supply remains a key force on the market for at least an additional 12 months. Expectations at the metro level, however, may exhibit considerable differences. For more rent growth expectations in 2025 at the market level, stay tuned for Friday’s post from Carl Whitaker.

Major Apartment Markets Show Occupancy Improvement in 2024

2025-01-13T08:28:56-06:00

Year-end 2024 data suggests that many markets are beginning to see occupancy improve from their local low point. Among the nation's 50 largest metro areas, 25 saw occupancy increases between 30 basis points (bps) and up to 100 bps in 2024, according to data from RealPage Market Analytics. Those markets were generally within reach of the national average improvement (60 bps in 2024). Outside of those 25 metro areas with moderate improvement were a few distinct groups of markets. Half a dozen markets saw occupancy improve only slightly up to 20 bps versus the prior year. Those six markets were exclusively coastal areas (including New York, Boston and Orange County). Elsewhere, there were 15 markets where occupancy improved by at least 100 bps in 2024. Most noteworthy was the 200-bps occupancy increase in Las Vegas. Among those most-improved markets were Greensboro, Indianapolis and Jacksonville, all of which saw at least 150 bps occupancy improvement. Though the pace of rent growth continued to decelerate in some high supply markets such as Austin, Dallas, Phoenix and Raleigh/Durham, improvement in occupancy ranged between 30 bps and 100 bps for those areas. While rent growth may remain sluggish in those markets during 2025, the improved occupancy rate suggests these markets may be turning a corner. Finally, just four of the nation's key apartment markets saw occupancy backtrack in calendar 2024. Those markets were Fort Worth, Memphis, Milwaukee and Minneapolis. Still, even those markets saw very limited occupancy contraction with no market losing more than 20 bps in the past 12 months.

Increased Rent Growth Forecasted in 2025, After Supply Wave Crests

2026-03-04T06:52:59-06:00

Demand Drivers Leading into 2025 In the first 11 months of 2024, U.S. employment grew 1.6%, adding nearly 2 million jobs. This was about 27% fewer new jobs compared to the same period in 2023. The slowdown in employment was in part due to several devastating hurricanes and tornadoes, as well as numerous employee strikes at various ports and factories across the country. Despite these challenges, the country's Gross Domestic Product (GDP) grew at a steady pace throughout the year, while annual inflation registered at 2.7% in November. Real average hourly earnings in November grew 1.3% year-over-year. RealPage initial employment forecasts indicate that the U.S. economy will generate roughly 1.4 million jobs in 2025, while inflation will continue to inch closer to the Fed's target rate of 2%. Last year was remarkable not only for advancements in artificial intelligence but also for the multifamily industry, despite facing numerous challenges, including financial and political hurdles. Lower inflation, solid employment rates, higher wages and a more accommodating Federal Reserve all boosted the confidence of thousands of households, leading to increased demand for housing. In 2024 alone, nearly 667,000 apartment units were absorbed, a level that seemed impossible at the beginning of the year. However, slower employment growth coupled with fiscal and monetary policy uncertainties are expected to slow down the demand for new apartments. Our RealPage forecast indicates that demand for new apartments will drop by over 25% in 2025, though it will still represent a decent absorption level. Subsiding Supply’s Impact to Rents While less robust than demand, the supply of new apartments had a standout year, with over 588,000 units coming online, and nearly 25% of this supply was delivered in just five metros: Dallas (+35,000 units), Austin (+31,000 units), Phoenix (+26,000 units), Houston (+25,000 units) and Atlanta (+24,000 units). Recent reports on new permits and starts su...

U.S. Labor Market Ends 2024 With a Robust Performance

2025-01-24T02:00:03-06:00

U.S. job growth surged in December, surpassing expectations. Employers added roughly 256,000 workers to payrolls in December 2024, according to a survey of businesses by the Bureau of Labor Statistics. Those additions were the biggest monthly gain in nine months and also came in above the roughly 155,000 to 165,000 jobs expected by economists. The U.S. economy has now added jobs for 48 consecutive months, tying with a stretch from mid-1986 to mid-1990 as the second-longest period of job base expansion on record dating back to 1939. The Education/Health Services sector (+80,000 jobs) added the most jobs in December, while Manufacturing (-13,000 jobs) and Mining/Logging (-3,000 jobs) were the only industries to lose jobs. For all of 2024, employers added more than 2.2 million jobs or an average 186,000 jobs a month. Although that was down from the slightly more than 3 million jobs added in 2023, it was still a strong showing and marked a return to pre-pandemic norms. Meanwhile, the unemployment rate (U3 or headline unemployment rate, which is seasonally adjusted, and is a survey of households) fell from 4.2% in November to 4.1% in December. This post is part of a series analyzing employment data from the Bureau of Labor Statistics. For more on this data, read previous posts on Job Growth.

Potential Headwinds for the U.S. Apartment Market in 2025

2026-03-04T06:52:59-06:00

Although 2025 is poised to be another strong year for apartment demand, the outlook isn’t absent risk. Some in-place and potentially emergent headwinds may result in downside pressure this year. 1. Continued Supply Pressure There are many markets where supply (trailing 12-month deliveries) has either peaked or is expected to peak in the first few months of 2025. Still, this isn’t true for all markets, and there are some markets where the duration of supply pressure may persist longer, both in terms of peak timing and sheer volume. Markets that exhibit a longer duration of supply pressure (whether in terms of timing, volume, or both) are expected to underperform the broader market though 2025. By 2026, there may be a reprieve in supply pressure however as new starts and total construction volumes are down roughly 30% to 60% in most markets, according to RealPage Market Analytics. @include('site.elements.media.image', ['fileId' => 29883, 'attributes' => ['border' => '0']]) [Related: Read our coverage of multifamily permits and starts data here.] 2. More Frequent Concession Utilization While concession utilization remains below early 2010s standards, the nation has seen the number of units offering a concession increase in recent quarters. This isn’t currently a large influence for existing assets (roughly 14% of units offering a discount). Should concessions increase that would serve as a potential headwind in the coming months. Concession utilization runs higher, however, in lease-up assets. Nearly three-in-four units in lease-up today are offering at least one month free. By comparison, just half of lease-up units offered at least one month free as of 2019. Further, nearly 20% of lease-up units were offering about two months free at the end of 2024 – a threefold increase to 2019 levels. 3. Risk of Increased Turnover Due to Concessions and Rent Roll Inversion An increase in concessions could spur an uptick in renter turnover as renters seek discounted apart...

Why is 2025 Likely to Have Strong Apartment Demand if Job Growth Has Slowed?

2026-03-04T06:52:59-06:00

Demand surprised to the upside in 2024, with a calendar year figure totaling nearly 667,000 units absorbed. The expectation is that this should carry forward into 2025, even if the pace of absorption diminishes slightly due to the likelihood of slowing new deliveries.Moderating job growth is a potential demand concern going into 2025. Indeed, job growth slowed throughout the year, and job growth is often seen as the most important driver of housing demand. Yet, 2024 defied these expectations – as shown by the remarkable absorption total. Still, both quantitative (e.g. exogenous variables in the forecast model) and qualitative (influences not directly captured by regression models, but real world influences that affect demand) factors are worth considering. [Related: Read our coverage of employment data here.] Demand Driver #1: Slowing (Though Still Positive) Job Growth U.S. annual job growth in 2025 is forecast to total slightly more than 1 million additional jobs, or 1% growth, according to RealPage. While this is slightly below prior year outcomes, positive job growth remains a driver in demand (and therefore rent growth) expectations. Further, there is potential upside in economic growth should some sectors (e.g. Information; Professional/Business Services; and Financial Activities) being to see rebounding job growth as the cycle of interest rate cuts has now begun. Demand Driver #2: Improving Affordability Helps Spur Household Formation RealPage Market Analytics data shows rent-to-income ratios continued to trend down in 2024, reapproaching pre-COVID levels of roughly 22% last seen in early 2020. As a result, this may allow for the release of pent-up demand. This is also proven out by the drop in average number of residents per new lease agreement, which decreased to 1.42 residents per agreement in 2024 compared to 1.46 residents in 2023. This trend has been driven by two influences: continued wage growth and modest rent growth. Wage growth (still s...

Markets Delivering the Most New Apartments in 2024

2025-01-22T03:13:49-06:00

In 2024, nearly 588,900 apartment units delivered across the nation, reaching the highest level since 1974. Markets in the South region captured the lion’s share of new supply in 2024, accounting for 58% of completions, according to data from RealPage Market Analytics. Ten markets across the country delivered more than 15,000 units during the year, led by just over 35,400 units in Dallas. Two other apartment markets in Texas – Austin and Houston – each received around 25,000 to 31,000 units in 2024. Several other South region markets, including Atlanta (24,134 units), Charlotte (17,175 units) and Raleigh/Durham (15,616 units) were among the nation’s top 10 supply leaders in 2024. Two West region markets (Phoenix with 26,216 units and Denver with 19,937 units) and two Northeast region markets (New York with 18,776 units and Newark with 15,566 units) also landed among the nation’s top 10 supply leaders in 2024. Of these top 10 markets for new supply in 2024, all but New York and Newark registered record supply levels during the year. No Midwest markets made the top 10 list. The Midwest leader – Minneapolis – added roughly 9,200 apartments in 2024, ranking #19 nationally.

Resounding Appetite for Apartments Overtakes Oversupply Fears in 4th Quarter 2024

2026-03-04T06:52:58-06:00

U.S. apartment demand hit its highest level in nearly three years in 2024’s 4th quarter and easily outpaced concurrent new supply, which reached decades-long highs in 2024. “The U.S. apartment market has responded to the fears of oversupply with resounding appetite,” RealPage Chief Economist Carl Whitaker said. In the October to December quarter, the U.S. absorbed 230,819 market rate apartment units, buoying annual demand to 666,699 units – the highest annual recording since 1st quarter 2022. At the same time, 155,408 new units were delivered in 4th quarter, propelling annual supply to 588,883 units, according to data from RealPage Market Analytics. @include('site.elements.media.image', ['fileId' => 29767, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '1233']]) As such, the imbalance between supply and demand has reversed, allowing for the first true absorption surplus of apartment demand since mid-2022. @include('site.elements.media.image', ['fileId' => 29756, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) With demand outpacing supply, the U.S. posted a meaningful annual occupancy bump to stand at 94.8% in December. Meanwhile, rent change remained flat under the weight of near-historic new supply volumes. U.S. apartment rents were cut on a monthly basis in each of the final three months of 2024, but those cuts were slightly less deep than the year-earlier rent cuts, appearing to marginally boost rent growth to a still-muted 0.5% growth in calendar 2024. @include('site.elements.media.image', ['fileId' => 29757, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Texas Markets Post Strongest Demand in Nation Dallas posted the most apartment demand in the U.S. during calendar 2024, absorbing a remarkable 36,724 units. Neighboring Fort Worth absorbed another 7,681 units. Houston claimed the second highest absorption tally in the nation in 2024 (31,925 units), followed by Austin in the no. 3 sp...

Multifamily Permits Surge in November as Starts Plunge

2026-03-04T06:52:58-06:00

The annualized rate for multifamily permits issued jumped 22.1% in November from October’s annual rate to 481,000 units, according to the latest report from the U.S. Census Bureau and the Department of Housing and Urban Development. Compared to last November, multifamily permitting was up 4.8%. However, the latest reported annual rate for multifamily permits is a seasonally adjusted monthly rate that is then annualized. This allows easy month to month comparisons, but it is not the sum of monthly totals from permit issuing places that is not seasonally adjusted. This chart shows both the annualized seasonally adjusted total and the 12-month moving not seasonally adjusted annual total for multifamily permits and the inherent volatility of the seasonally adjusted figures is very apparent. @include('site.elements.media.image', ['fileId' => 29667, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Looking at the moving 12-month not seasonally adjusted figures, the percent change in November from October was almost negligible at 431,800 units, and compared to one year ago, multifamily permitting is down almost 22%. This comports more closely with “on the ground” observations. Likewise, the seasonally adjusted annual rate (SAAR) for multifamily starts exhibits the same volatility with a decrease of 24.1% from October’s rate to 264,000 units, down 28.8% for the year. However, not seasonally adjusted multifamily starts were down almost 31% from October’s 12-month total to 336,100 units, down 26.5% from last November. On the single-family side, November’s SAAR of 972,000 units was almost unchanged from October and down 2.7% from last year. Annualized single-family starts were up 6.4% to 1.011 million units, but down 10.2% for the year. The SAAR for completions was up from last November by 7% for single-family homes (to 1.038 million units) and 13.6% for multifamily (to 544,000 units). Reflecting the apparent slowing in residential construction,...

Consumer Confidence in the Economy Picks Up in December

2025-01-22T03:13:48-06:00

U.S. consumer sentiment increased for a fifth consecutive month in December. Driven by consumers’ perception of current economic conditions, the University of Michigan’s Consumer Sentiment index increased to 74 in December 2024, up 3.1% from November and 6.2% ahead of December 2023. This marked the highest consumer sentiment index reading since April 2024. In 2022, consumer sentiment hit near 30-year lows as inflation climbed to a 40-year high and the Federal Reserve started hiking interest rates to combat that increase. More recently, with inflation under control, the Fed has been cutting interest rates, with December marking the third cut of the year. Improved consumer sentiment is good news for the U.S. apartment market, as consumer confidence in the economy tends to stimulate apartment demand.

Drivers of the Build-to-Rent Sector

2026-03-04T06:52:58-06:00

Build-to-rent (BTR), an expanding sector of the rental market, continues to snag a growing share of the single-family landscape. Spurred by single-family affordability challenges, demographic shifts and lifestyle changes for renters entering the home buying stage, an increasing number of institutional capital sources have entered the market along with developers evaluating the impact of BTR on their multifamily portfolio. Outside of conventional multifamily, renters have several options. While conventional multifamily accounts for about half of the rental universe, about 21 million units fall under the single-family rental umbrella. Single-family rentals include the traditional single-family rental (“for rent by owner”), townhomes and BTR – as defined by the Census Bureau. @include('site.elements.media.image', ['fileId' => 29633, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Single-family rentals have distinct characteristics. The traditional single-family rental (SFR) is typically a new or existing single-family home built for homeownership. Conversely, BTR units are purpose-built communities designed for rental. Another difference between traditional SFR and BTR is location. BTR units are developed as master-planned communities in high-growth suburban neighborhoods. Whereas SFR homes are on scattered sites in established neighborhoods. SFR is traditionally managed by individuals or small investors, however, there is growing interest among institutional sources of capital. Meanwhile, institutional investors with property management companies providing on-site support lead the BTR space. Specifically, BTR is distinguished from SFR by ample amenities and a smaller unit size (less than 1,500 square feet) appealing to renters seeking things like attached garages, front and back yards, extra storage space, pet-friendliness and increased privacy. Developers also deliver amenities like the gym and pool commonly found in conventional propert...

Top RealPage Analytics Blogs of 2024

2026-03-04T06:52:58-06:00

When a once-in-a-generation supply wave meets strong demand amid mixed economic signs, it makes for a challenging multifamily environment. Our RealPage Analytics blog – powered by data from RealPage Market Analytics and other sources such as the Bureau of Labor Statistics, Census Bureau and MSCI/Real Capital Analytics – helped make sense of it all with some facts, figures and analysis from our team of economists, analysts and writers. Here are the most-read stories on the RealPage Analytics blog in 2024. @include('site.elements.media.image', ['fileId' => 29570, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '132']]) Readers were hungry for information explaining the 50-year high in multifamily deliveries. In January 2024, we said the U.S. expected about 670,000 units in calendar 2024. Due to supply delays, that number appeared to be shaping up to more like 600,000 units as of December, but the storyline remains: apartment supply was prolific in 2024. @include('site.elements.media.image', ['fileId' => 29571, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '132']]) Some 390,000 apartment units were absorbed across the U.S. in the year-ending 2nd quarter 2024, the eighth-largest figure on record. Still, that ultra-strong rate fell below concurrent new supply, though the delta between the two continued to close. Demand persisted in 3rd quarter as an additional 193,000 units were absorbed in the July to September time frame. @include('site.elements.media.image', ['fileId' => 29572, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '132']]) Our annual analysis of which markets have the most Fortune 500 headquarters shifts a bit from year to year. In 2024, New York again reigned as the city with the most Fortune 500 headquarters at 47, followed by Chicago (30) and Houston (23). @include('site.elements.media.image', ['fileId' => 29573, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '132']]) Our 2nd...

RealPage Economy Express Episode 41

2025-01-22T03:13:48-06:00

Episode 41: The U.S. economy showed mixed but promising signs, with modest inflation, steady personal income growth, a robust housing market and cautious monetary policy adjustments by the Federal Reserve. The Consumer Price Index rose 0.3% in November, bringing the annual climb to 2.7%. The energy index edged up 0.2% in November after remaining unchanged in October. The Fed's preferred measure of inflation, the PCE (Personal Consumption Expenditures) price index, ticked up 0.1% in November from the previous month and showed a year-over-year increase of 2.4%. Building permits in November increased 6.1% from October, despite a slight year-over-year dip. Existing-home sales rose 4.8% in November, reaching a seasonally adjusted annual rate (SAAR) of 4.15 million and representing the strongest year-over-year increase since June 2021. Mortgage applications decreased 0.7% from the previous week, according to the latest MBA survey for the week ending December 13. This dip reflects the nuanced effects of incrementally rising mortgage rates, which currently average around 6.75% for 30-year fixed loans. Initial unemployment claims dipped to 220,000 in the week ending December 14, a decrease of 22,000 from the previous week, suggesting a labor market that's finding its footing. The Conference Board's Leading Economic Index increased 0.3% in November, a sign of potential economic durability, supported by gains in building permits and a rebound in stock markets. Finally, the Fed updated its outlook for 2025, now indicating that it plans to make just two rate cuts next year, rather than the four previously anticipated. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

Youngstown Logs Nation’s Deepest Net Move-Outs

2025-04-21T16:01:57-05:00

A small town on the Ohio/Pennsylvania border lost more demand in the past year than any of the nation’s largest 150 apartment markets. The net move-outs from nearly 560 units in Youngstown in the year-ending 3rd quarter was also the market’s worst showing in nearly a decade. This recent performance made Youngstown one of only nine apartment markets among the nation’s top 150 to see net move-outs in the past year, according to data from RealPage Market Analytics. New apartment supply has been absent in Youngstown since 2019 and not long ago, Youngstown was the nation’s occupancy leader. While occupancy here is still tight and well ahead of national norms, the rate has come down a bit since the 2022 peak. Inspiring the weak demand, Youngstown recorded one of the nation’s worst job loss rates in the past year. The market lost 700 jobs in the year-ending October, translating to a 0.3% job base contraction, according to the Bureau of Labor Statistics. This market also lost some population according to the latest Census Bureau data, with the resident base contracting 0.2% between 2022 and 2023.

Annual Job Gains Slow in Top Markets Except for New York and Los Angeles

2026-03-04T06:52:58-06:00

Compared to one year ago, two-thirds of RealPage’s top 150 markets had fewer jobs gained in the past 12 months than they did for the previous 12-month period. However, the metro divisions of New York and Los Angeles saw significant improvement in their annual job gain totals in November 2024. Bucking that trend, the New York-White Plains metro division gained 107,300 jobs for the year-ending November to lead the nation once again, according to the Bureau of Labor Statistics’ monthly report. That was an increase of 32,000 jobs from last November’s total. Likewise, the Los Angeles-Long Beach-Glendale division topped their total from last year by 64,700 jobs to total 46,200 jobs gained through November and land at #3 on our top 10 list. @include('site.elements.media.image', ['fileId' => 29547, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '613']]) Altogether, the top 10 markets for annual job gains totaled 464,100 new jobs, down 11,400 jobs from last year for the same 10 markets despite the increases in New York and LA. Nine of last month’s top 10 rejoined the list in November as last month’s #9 Atlanta tumbled to #33 this month, replaced by Riverside. Houston, Dallas, Phoenix and Philadelphia remained in the top six on the list but each saw their annual employment gains fall by from 17,500 to 32,800 fewer jobs gained than the year before. Washington, DC, Charlotte and Indianapolis were almost unchanged from their reported employment levels last November. The next 10 markets (#11-#20) of RealPage’s top job gain markets saw their total gains increase slightly (1.9%) to total 224,100 new jobs, less than half the total for the top 10 markets. Twelve of our top 150 markets reported annual job losses for the year, one less than last month. Major markets reporting annual job losses include Minneapolis-St. Paul, Chicago and Milwaukee. The settlement at Boeing returned Seattle to positive job gains. Job Growth Unlike the top job gain markets, which...

2025 Apartment Industry Predictions

2025-01-22T03:13:48-06:00

As the new year starts, here's a few quick predictions for the apartment market in 2025: Supply is the key theme for 2025. Initially, abundant supply is expected to lessen through the year as economic headwinds challenge developers. Easing supply will likely give way to an environment where housing shortages challenge some metro areas beyond 2025. Renters in high-supply markets will see concessions as supply remains a heavy force on the market. As a result, retention will be a priority for operators looking to mitigate rising turnover and marketing costs. Demand will continue to catch up with the wave of new supply delivery throughout the Sun Belt, where rental rate growth is likely to be modest. Meanwhile, based on supply-demand factors, rents in lower-supply metro areas are expected to grow at a pace similar to the 2010s decade.

Class A Price Premium Smallest in High Supply Submarkets

2026-03-04T06:52:58-06:00

As supply levels nationwide have surpassed the largest volumes seen in more than 50 years, apartment fundamentals in market-rate multifamily assets have softened. Nearly 1 million new units have delivered since the start of 2023, putting downward pressure across all product segments, not just those units at the top of the pricing spectrum as has been typically seen historically. Submarkets in the nation’s 150 largest apartment markets with the largest inventory growth in the year-ending 3rd quarter 2024 registered the narrowest median pricing premiums between asset classes. In submarkets with less than 1% inventory growth year-over-year, Class A units recorded the largest median premium of 22% in 2024’s 3rd quarter. Meanwhile, submarkets with more than 10% growth annually saw the smallest Class A premiums of under 15%, according to data from RealPage Market Analytics. In other words, it is 7% more expensive for a Class B renter in a low-supply submarket to move into a luxury Class A unit today compared to one in a high-supply submarket. @include('site.elements.media.image', ['fileId' => 29500, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Of the roughly 700 submarkets in the nation’s 50 largest apartment markets, nearly two-thirds registered minimal inventory growth (1% or less year-over-year). On the opposite end of the spectrum, 21% of top 50 submarkets have expanded their apartment inventory greater than 5% over the last year. Among low supply submarkets, Detroit’s Royal Oak/Oak Park submarket registered the largest Class A premium in 3rd quarter 2024. With a meager 0.7% inventory growth annually, Royal Oak/Oak Park’s Class A units registered an average rent 66% greater than Class B prices. Pittsburgh’s Westmoreland/Fayette Counties – which completed no new supply in the last 12 months – was a close no. 2 nationally with Class A rents sitting nearly 61% above Class B prices. Comparing Class B to Class C, the largest deltas in pr...

2024 Apartment Industry Takeaways

2025-01-22T03:13:48-06:00

Before the year wraps up, here's just a few quick takeaways on the apartment market in 2024: Robust U.S. apartment supply — more than any year since 1974 — has matched the strongest renter demand in three decades besides 2021. The national occupancy rate held slightly below a "historically normal" level, averaging around 94.3%. Resident retention surged with lease renewals reaching a rarely seen 55%, while U.S. annual rent growth remained flat overall (less than 1%). Elevated apartment development saw 60% more units under construction than the 2010s-decade norm, but the pipeline began to slow with the fewest number of starts since early 2013.

2025 Supply Increases Notable in New York and Los Angeles

2026-03-04T06:52:58-06:00

The nation’s largest apartment markets – New York and Los Angeles – are set to see big jumps in apartment delivery volumes in 2025. In the U.S. overall, supply has been a key storyline, hitting at some of the highest volumes in recent history. The delivery schedule indicates over 599,000 units will be completed across the U.S. in calendar year 2024, according to data from RealPage Market Analytics. In 2025, another 508,000 or so units are set to come online nationwide. Individual apartment markets, however, are set to reach construction peaks at different time frames. In the case of nation’s two largest apartment markets – New York and Los Angeles – apartment supply is not expected to peak until 2025. And the peaks expected in calendar 2025 are significantly ahead of 2024 completions. @include('site.elements.media.image', ['fileId' => 29450, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '608']]) Among the other large markets set to see big increases in delivery volumes in 2025, none come close to the jumps scheduled for New York and Los Angeles. New York In New York, a market that is no stranger to big apartment supply, over 34,800 units are slated to come online in calendar 2025. If that planned activity were to wrap up during calendar 2025, it would be the highest level of deliveries RealPage has ever recorded in the New York market. By comparison, nearly 18,900 units are slated to complete in calendar 2024, making calendar 2025 completions 84.5% higher. @include('site.elements.media.image', ['fileId' => 29448, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) This influx of new supply could help alleviate a critical shortfall of housing in New York. Even the product delivering at a high price point could help, as new supply helps free up units at lower price points. Demand drivers in New York include demographic attraction for a renter-based population and a steady job market ripe with global finance jobs. New Y...

Apartment Markets with the Highest Share of Mid-Rise Assets

2025-01-22T03:13:48-06:00

While just under 20% of the nation’s apartment stock is defined as mid-rise product, this asset type is a powerful option for increasing density in locations where high- or low-rise buildings might be less desirable. RealPage defines mid-rise properties as having between four and six stories. Factors such as geography, land parcel size, population density, cost and local zoning codes are all important considerations in planning building size. Further, many neighborhoods prefer mid-rise over high-rise buildings as they are seen to foster a greater sense of social cohesion and community building. Boston is a great example of building height restrictions due to proximity to Boston Logan International Airport, among many other reasons. As a result, Boston leads the nation for proportional share of mid-rise assets with nearly half of existing housing inventory defined as mid-rise. Seattle, Newark, Washington, DC and San Francisco followed, each with mid-rises comprising approximately one-third of existing stock. Alternatively, markets with the lowest proportional share of mid-rise buildings tend to be away from coastal, gateway markets. More interior, smaller metros with more room to build tend to have fewer mid-rise properties, including the lowest concentrations in Greensboro, Las Vegas, Detroit, Sacramento and Riverside. Each of those markets claimed less than 10% of their respective housing stock as mid-rise. To see which markets have the highest and lowest share of high-rise properties, see here.

Rents in Small Carolina Markets Fall Under Weight of New Supply

2025-01-22T03:13:48-06:00

Three small apartment markets in the Carolinas are cutting rents under elevated supply volumes. From October to November, effective asking rents were cut roughly 1% to 3% in Charleston (-1.0%), Myrtle Beach (-2.7%) and Wilmington (-1.8%), according to data from RealPage Market Analytics. Those cuts were steeper than the national month-over-month average rate cut of 0.4%. On an annual basis, rents fell around 2% to 2.5% in Mrytle Beach (-2.2%) and Wilmington (-2.6%), while a mild year-over year decline was seen in Charleston (-0.1%). Nationally, rents rose an average of 0.4% year-over-year. All three of those Carolina markets have been witnessing an onslaught of new apartments, and supply has yet to peak. Myrtle Beach saw its inventory grow 10% in the year-ending 3rd quarter 2024, taking its existing unit count to roughly 53,300 units. Supply in that market is expected to peak in 4th quarter 2024, with the addition of 5,731 units expanding inventory 12.2% in calendar 2024. Charleston, with nearly 76,700 existing units, grew its inventory 4.8% in the year-ending 3rd quarter 2024. Supply in Charleston will likely peak in the year-ending 1st quarter 2025 with the addition of 6,024 units for an expansion rate of 8.3%. Wilmington, the smallest among those Carolina markets with around 30,400 existing units, added 2,704 units in the year-ending 3rd quarter 2024 for an expansion rate of 7.4%. New supply there is expected to peak in 3rd quarter 2025 with the addition of 2,441 units, growing existing stock 8.2%. That’s close to the market’s 7.4% expansion rate seen in 3rd quarter 2024.

Charlotte Neighborhoods with Sizable Apartment Additions

2026-03-04T06:52:58-06:00

Apartment supply volumes in Charlotte have been notably high and – according to the schedule of deliveries – will continue to be in the near term as well. In the past five years, the apartment stock in Charlotte grew by a sizable 49,159 units, according to RealPage Market Analytics. That volume increased the existing unit count by 26.1%, which was one of the top showings among the nation’s largest 50 apartment markets. The only two markets to see a bigger increase in the past five years were Austin (30.7%) and Nashville (27.5%). Within the submarket lines in Charlotte, growth was even more intense in a few key neighborhoods. In fact, three of Charlotte’s biggest submarkets saw their existing unit counts grow by around 50%, an even more remarkable feat given their relative size. These three submarkets are clumped together just northwest of the market’s urban core. While they are relatively small in geographic size, with more than 20,000 units each, these are some of the largest existing unit counts in the market. Southwest Charlotte has added nearly 9,600 units to its existing stock since 3rd quarter 2019, increasing its base by 54% during that time. This was a rare feat, as only five other submarkets nationwide with more than 27,000 units saw inventories grow by 54% or more in the past five years. Others on that list include Phoenix’s Avondale/Goodyear/West Glendale, Austin’s Round Rock/Georgetown and East Austin, Dallas’ Frisco and Northeast Denver. Southwest Charlotte’s neighbor – North Charlotte – saw the completion of nearly 7,000 units, for a growth rate of 50.5%, in the past five years. And over 7,800 units wrapped up in neighboring UNC Charlotte, increasing that existing base by 46.4% since 3rd quarter 2019. @include('site.elements.media.image', ['fileId' => 29222, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '805']]) Notably, five years ago, Charlotte’s urban core of Uptown/South End claimed Charlotte’s biggest existing unit count....

Apartment Demand Falters in These Nine Small Markets

2025-01-22T03:13:48-06:00

Despite solid demand defining the U.S. apartment market recently, there were a handful of smaller markets that suffered net move-outs in the past year. Among the nation’s largest 150 apartment markets, only nine saw apartment demand backtrack in the past year. Of those nine, all were smaller markets with existing unit counts averaging at about 42,700 units. Only two markets on this list – Madison and Rochester – had existing stock totals bigger than 60,000 units. Of these nine markets to report net move-outs in the year-ending 3rd quarter, four were in the Midwest, where the slow-and-steady nature of region led to notably tight occupancy rates of late. Youngstown logged the deepest loss nationwide with demand falling by nearly 560 units in the past year, according to data from RealPage Market Analytics. The other three Midwest markets with demand setbacks in the past 12 months were Madison, Toledo and Flint, and those performances were a bit less drastic at about 60 to 200 units.

Roughly 90,000 Build-to-Rent Units Underway Across U.S.

2026-03-04T06:52:58-06:00

Build-to-Rent product (BTR) remains a practical option for renters not ready or not able to achieve homeownership. Factors challenging home ownership include a tight housing inventory, both for rent and for sale, coupled with volatility in mortgage rates. Persistent housing demand remains a proving ground for BTR with a resilient U.S. economy, real gross domestic product (GDP) at an annual rate of 2.8% as of 3rd quarter 2024 partnered with a still solid – though slowing – job market and consumer spending. In the BTR space, the Sun Belt leads the nation for construction with nearly 57,000 BTR units underway as of November, according to RealPage Market Analytics. That total more than doubles the next closest region, the West, with about 23,100 BTR units under construction. @include('site.elements.media.image', ['fileId' => 29232, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) BTR, as defined by RealPage, includes single-family housing that is fully detached, semi-detached (semi-attached, side-by-side), row houses, duplexes, quadruplexes and townhouses built for rental. To make a distinction, BTR typically differs from traditional single-family rentals in that developers build this product type on land for the primary intent of renting out the housing units. Conversely, traditional single-family rentals start as homes designed for homeownership. That said, nationwide, developers have roughly 90,000 BTR units under construction (including properties in lease-up where construction is ongoing). Construction is heavily concentrated in the South and West across states like Texas, Arizona, Florida, Georgia and North Carolina. The concentration of BTR development in these states speaks to the need for lots of space to build out single-family style homes with a plethora of community amenities, naturally lending itself to this region of the U.S. No surprise, the South tops the nation with 56,992 BTR units expected to complete through 2nd quarter...

The U.S. Has Entered its Third-Longest Period of Job Base Expansion on Record

2026-03-04T06:52:58-06:00

U.S. job growth rebounded as expected in November, following work disruptions in October caused by severe weather and labor strikes. However, the unemployment rate ticked up slightly. @include('site.elements.media.image', ['fileId' => 29134, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Employers added roughly 227,000 workers to payrolls in November 2024, according to a survey of businesses by the Bureau of Labor Statistics. Those additions came in well above the 36,000 jobs gained in October which were impacted by work disruptions caused by severe weather in the Southeast and a major labor strike at Boeing. November’s job gains also came in above the 200,000 to 220,000 jobs expected by economists. The U.S. economy has now added jobs for 47 consecutive months, the third-longest period of job base expansion on record dating back to 1939. Of note, the job counts for both September and October were revised up. Upward revisions to September 2024 data showed 32,000 more jobs were added than previously reported, up to 255,000 positions. The October 2024 job growth number was revised up by 24,000 jobs to a total of 36,000 positions. With these revisions, employment gains in September and October combined were 56,000 jobs higher than previously reported. @include('site.elements.media.image', ['fileId' => 29135, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Job gains in November were higher than the monthly average of around 185,800 jobs added over the previous 12 months and came in well above pre-pandemic norms. From 2015 to 2019, the U.S. economy added an average of roughly 190,000 jobs each month. On an annual basis, the nation gained roughly 2.27 million jobs as of November 2024. That was the second-weakest annual gain since March 2021 and registered below the pre-pandemic average of around 2.4 million jobs added annually from 2015 to 2019. The U.S. economy has recovered all the net jobs lost during the COVID...

RealPage Economy Express Episode 40

2025-01-22T03:13:48-06:00

Episode 40: Consumer confidence is up and the construction and housing sectors are showing sustained growth. Construction spending in October showed a modest monthly increase, leading to 5% year-over-year growth. Private and public investments in construction are gradually improving, with residential construction rising 1.5%. Existing-home sales rose 3.4% in October, marking the first year-over-year gain since July 2021. Pending home sales increased, continuing a three-month upward trend. The S&P CoreLogic Case-Shiller Index indicated a 3.9% annual increase in U.S. home prices in September. The labor market added 227,000 jobs in November, rebounding from disruptions caused by severe weather and labor strikes. The Federal Reserve’s preferred inflation gauge (the personal consumption expenditures price index) rose to 2.3% annually in October. Consumer confidence increased again in November, driven by improved perceptions of the labor market and economic conditions. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

Record Apartment Supply Compresses Pricing Across Asset Classes

2026-03-04T06:52:58-06:00

Unprecedented levels of apartment supply completing in the last two years has softened occupancy and increased vacancy nationwide. As such, rent performance has all but stalled across the nation in market-rate, multifamily assets. But it’s not just the most high-end, Class A units – which have historically been the most sensitive to new supply – feeling downward pressure from the more than 557,000 units that have delivered across the country in the last 12 months. Instead, the record number of units in lease up has impacted all three product segments, resulting in a reduced pricing premium between asset classes. This is seen not only in Class A and Class B product, but also between Class B and the more affordable Class C segment. Between 2010 and 2019, the delta in effective asking rents among product classes fluctuated very little. Luxury Class A rents averaged 32.2% higher than Class B units during that time, according to data from RealPage Market Analytics. Class A renters, in other words, paid one-third more rent than Class B renters, on average. Rents in the more affordable Class C units, meanwhile, averaged 21.3% less than Class B counterparts. Over the past few years, those deltas have compressed. As of 3rd quarter 2024, Class A effective asking rents ($2,316) averaged just 24.8% above that of a Class B unit – a significant compression from the over 32% delta seen previously. Meanwhile, Class C effective asking rents ($1,485) now run just 19.5% below that of Class B rents ($1,805) as of 3rd quarter. @include('site.elements.media.image', ['fileId' => 29002, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) The reduced rent premium has largely been driven by a record number of new apartment units delivering to the market. With so many more options for potential renters to choose from, new units in lease up have had to get more competitive with their pricing, attracting new tenants through more substantial concessions. As a result...

Another Rent Cut in November as Supply Subdues Apartment Fundamentals

2026-03-04T06:52:58-06:00

Much like in October, effective asking rents for professionally managed apartments ticked down on a monthly basis in November. Rents were cut 0.4% from October to November, according to data from RealPage Market Analytics. As such, effective asking rents inched up just 0.4% in the year-ending November 2024, with change measured on a same-store basis. November’s monthly rent cut appeared normal by historical standards as rents generally soften in the winter months, likely due to operators prioritizing occupancy during slower leasing seasons. November’s average rent cut has hovered around 0.3% dating back to 2010. November 2024’s cut of 0.4% registered just 10 basis points (bps) deeper than the long-term norm. By comparison, October and December average rent cuts of 0.2% and 0.1%, respectively. (Most rent growth is achieved during prime leasing season in the spring and summer months.) U.S. apartment occupancy remained unchanged month-over-month in November, after ticking up at the end of prime leasing season due to strong demand, both for new and renewal leases. As of November, occupancy reached 94.8%, roughly in line with the long-term norm. Regionally, the highest supply area of the country, the South region, again claimed the lowest apartment occupancy at 93.9% in November. As usual, the Northeast claimed a characteristically high occupancy rate of 96.3% in November. In the Midwest and West, occupancy stood at 95.3% and 95.2%, respectively. @include('site.elements.media.image', ['fileId' => 29036, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '1233']]) Detroit again claimed the highest annual effective rent growth in the nation among major markets. Rents in the Michigan city grew 4.0% in the year-ending November 2024. Midwest peers Kansas City, Chicago, Columbus and Milwaukee also posted annual effective rent growth among the top in the nation. Markets with generally lower inventory growth tended to rank among the top in the nation for rent g...

Top and Bottom Markets for Proportional Share of High-Rises

2025-01-22T03:13:48-06:00

Apartment performance in high-rise properties was deeply affected by lockdowns and government restrictions during the COVID-19 pandemic, with rent change and occupancy experiencing the deepest declines among product types throughout 2020 and 2021. As work from home and hybrid workplace situations continue to evolve, high-rise apartment performance continued to face headwinds alongside the office sector, particularly in Central Business Districts or urban core areas lacking significant work and play infrastructure. Still, high-rise living remains attractive to renters in many markets nationwide, especially in areas with vibrant social amenities or scenic views. High-rise properties, defined as seven stories or greater, are most concentrated in New York. Some 74% of the market’s housing sample set qualifies as high-rise buildings, according to data from RealPage Market Analytics. This volume is nearly double the amount seen in the next highest market, Miami, where about 40% of existing stock qualifies as high-rise. In Miami, the outsized share of high-rise assets is heavily clustered in the urban core, as well as along the scenic coastal side of the metro. Washington, DC, Chicago and Cleveland round out the top five markets with the highest share of high-rise assets due to their large local and more established urban core neighborhoods. The markets with the lowest share of high-rise properties are generally affordable, less dense metros with comparatively smaller populations. High-rise properties in Sacramento, Greensboro and San Antonio make up 1.2% of their respective market's total. Las Vegas follows closely with high-rises comprising 1% of its apartment market. Meanwhile, apartment stock in Fort Worth is less than 0.5% high-rise assets. To see which markets have the highest and lowest share of high-rise properties, see here.

Scheduled Apartment Supply Peaks by Market

2026-03-04T06:52:58-06:00

We on the data provision side of things talk (and hear) a lot about the national supply peak, but the local figures are what really matters for those on the practitioner's side of the business. That isn't to discount the national narrative, but ultimately what's happening in your city is going to tell you more about the near-term than the nation at large. Macro and micro go hand in hand, after all. So, when is the expected supply peak by market? As you'd expect, there's a pretty big range of results. Here are some general themes that stand out at first glance. There are a dozen major U.S. metros that have already hit peak supply, and some of those markets may be surprising. While there isn't as consistent of a geographic theme here, some markets that have gone through quite remarkable local peaks are on their respective downwards slope. Salt Lake City is a great example of a market where peak construction activity accounted for more than 10% of all existing inventory, according to data from RealPage Market Analytics. @include('site.elements.media.image', ['fileId' => 28792, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Chicago gets overlooked at times, but the urban supply wave delivering here is subsiding rather quickly. Peak supply in the urban core (4,100 units in 1st quarter 2024) falls to 2,800 units by that same time the following year. Chicagoland's suburbs meanwhile peaked in 2023 (though supply through at least 2025 should be more or less consistent with that 2023 figure). There are more than a handful of markets quickly approaching peak supply. A particularly noteworthy cluster in the Southeast (generously grouping Central Florida in with Atlanta and Tennessee). South Florida and the Carolinas, however, have a few more quarters before peak supply arrives. Jacksonville and Nashville are worth mentioning as those two markets have had some of the most aggressive development pipelines on a percentage growth basis since the star...

Apartments Remain the Favorite Asset Class Among Real Estate Investors

2025-01-22T03:13:48-06:00

Apartments remain an attractive real estate investment compared to other asset types, accounting for 37% of all commercial real estate sales in 2024’s 3rd quarter. While apartment sales volumes are below the pandemic-era peak, 3rd quarter 2024 results were in line with pre-pandemic standards. Apartment sales during the quarter totaled $35.8 billion, a 9% year-over-year increase, according to data from MSCI Real Assets. That marked the second consecutive quarter of year-over-year growth following seven quarters of declines. Sales over the past two quarters averaged $38.3 billion, aligning with the pre-pandemic norm from 2015 through 2019. Sales volumes increased for both portfolios and single assets in 3rd quarter 2024. Transactions for individual apartment properties totaled $29.2 billion, up 5% year-over-year. Portfolio deals increased 33% to $6.6 billion in 3rd quarter. Mid- and high-rise apartment transactions increased 26% year-over-year to $15.9 billion in 3rd quarter. Sales of garden properties fell 1% year-over-year to $19.9 billion.

Multifamily Completions Far Outpace Starts in October

2026-03-04T06:52:58-06:00

It is no secret that annualized multifamily starts have been declining rapidly as the current cresting wave of new supply subsides. But, in fact, the seasonally adjusted annual rate (SAAR) for multifamily completions in October (615,000 units) was nearly twice that of the annual rate for multifamily starts (326,000 units). According to the latest report from the U.S. Census Bureau and the Department of Housing and Urban Development, annualized multifamily starts peaked for this cycle in late 2022, and with a roughly two-year construction timeline for most projects, completions should be hitting their peak period at around this time. Multifamily starts actually increased 9.8% from September’s annual rate but were down 12.6% from last October. @include('site.elements.media.image', ['fileId' => 28838, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Feeding this decline is starts is a shrinking number of multifamily units permitted for construction. October’s SAAR for units in structures with five units or more (393,000 units) dipped 3% from last month and was 20.9% less than the annual rate from one year ago. Meanwhile, single-family starts declined 6.9% from September and 0.5% from last October to 970,000 units. Together with the small two-to-four-unit category, total starts declined 3.1% from September to 1.311 million units and were down 4% year-over-year. Single-family permitting was virtually unchanged from last month (+0.5% to 968,000 units) and down 1.8% from last year. Total residential permitting slipped 0.6% from September to 1.416 million units, down 7.7% from last October. Multifamily completions dipped 9% from September to 615,000 units but are up more than 61% from last year. Single-family completions were down 1.4% for the month but unchanged for the year at 986,000 units. The SAAR for multifamily units under construction fell 3.5% for the month and 19.2% for the year to 804,000 units. The number of single-family units und...

2025 Apartment Supply Leaders, Ranked by Market

2026-03-04T06:52:58-06:00

In calendar 2025, more than 500,000 apartment units are expected to deliver across the U.S. While supply delays might curb that figure somewhat, it’s safe to say it will be another year of high supply in most major markets nationwide. Fourteen markets nationwide will receive over 10,000 new apartment units in 2025, led by nearly 35,000 units expected in New York. That marks the highest delivery load on record in the RealPage data set, going back to 2008, although for a market as large as New York, that represents a comparatively mild growth rate of 1.8%. Phoenix, by slight contrast, will receive fewer units – a still-high 29,600 – which represents a larger growth rate of nearly 7%, according to data from RealPage Market Analytics. The three largest apartment markets in Texas – Dallas, Austin and Houston – will each receive between 14,000 and 27,000 units in calendar 2025. Several other Sun Belt markets, including Charlotte, Raleigh, Atlanta and Orlando will be supply leaders in 2025, alongside a couple West region markets such as Seattle and Denver. Los Angeles, much like New York, will receive the most new supply on record in 2025, specifically peaking in 3rd quarter 2025 with an expected 19,400 units. Still, that record delivery load represents a 1.6% growth rate during calendar 2025 in Los Angeles. (New York and Los Angeles are the nation’s two largest apartment markets.) @include('site.elements.media.image', ['fileId' => 28718, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '721']]) Several smaller markets are expected to grow total inventory by more prolific ratios in 2025. The small North Carolina market of Asheville will grow by 13.3% in 2025 – the highest rate in the nation – with the addition of over 3,500 units. Huntsville, AL, Wilmington, NC, Cape Coral-Fort Myers, FL, Savannah, GA and Myrtle Beach, SC are all expected to grow total inventory by 7% or greater in 2025. All but one of the nation’s 150 largest apartment markets are set...

Supply/Demand Delta Smallest in the Desert/Mountains Region

2025-01-22T03:13:48-06:00

The Desert/Mountains region – which includes major apartment markets like Phoenix, Denver, Las Vegas and Salt Lake City – has seen notable improvement compared to last year. The demand shock of 2022 occurring just before the supply wave of 2023 and 2024 dampened apartment market performances across the region. More recently, the Desert/Mountains region has seen momentum shift faster than some other supply-heavy areas. This region absorbed more than 72,000 units in the past year, which was one of the best showings nationwide, behind only Texas. That volume translated to 4.7% of all existing stock, the most among the major U.S. regions. Annual demand in the Desert/Mountains region was behind the 76,100 or so units delivered concurrently, but not terribly. In fact, the 5% delta between those two figures was the smallest nationwide. In comparison, demand in Texas was 19% behind supply volumes. Looking at the region with the most similar delivery tally in the past year, Florida demand was 13% behind supply volumes. For more information on the state of apartment market across the Desert/Mountains region, including forecasts, watch the webcast Market Intelligence: Q4 Desert/Mountain Region Update.

Apartment Retention Rates Surge

2026-03-04T06:52:58-06:00

The ratio of U.S. apartment renters renewing their leases has climbed in the last year. Just over 54% of renters in market-rate apartments renewed their leases in the year-ending October 2024, which was a 120 basis point (bps) climb over last year, according to RealPage Market Analytics. Operators have pivoted to focus on retention in the last 24 months as supply levels continue to reach record levels across much of the nation, resulting in above average retention rates. Keeping existing residents in place by renewing leases is what some refer to as keeping the “back door” closed, which allows all new leases signed (or “front door” traffic) to act as net absorption of units occupied. Renewal rates are calculated on a trailing 12-month basis to eliminate seasonality as renewals typically go up during the summer when a higher proportion of leases (new and renewal) are signed. @include('site.elements.media.image', ['fileId' => 28669, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Even outside of the last year or two, renewals are up in the long term. In the decade before the pandemic (2010-2019), renewals averaged 50.7% nationally. That rate ticked up throughout the decade to stand at 52.8% in early 2020. When COVID-era lockdowns caused many residents to resign their leases by default, retention hit the highest rates on record, topping out around 57% in mid-2022. This trend is uniform in most major markets. Virtually all the nation’s 50 largest apartment markets have seen renewal rates climb over the last year. In six of those top 50 markets, renewals were up over 300 bps over last October. @include('site.elements.media.image', ['fileId' => 28661, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '423']]) Two Midwest markets – Minneapolis and Detroit – claimed the biggest retention increases with rates climbing over 400 bps in the year-ending October. Seattle, San Francisco, Las Vegas and Richmond all saw retention rates...

Apartment Inventory Growth to Top 8% in Charleston

2025-01-22T03:13:48-06:00

The Charleston-North Charleston, SC apartment market is approaching a peak in its record apartment supply wave. More than 6,000 new units are scheduled to deliver in the year-ending 1st quarter 2025, which will mark an all-time high in the RealPage dataset that began 24 years ago in Charleston. That surge of deliveries will push inventory up a record 8.3%, according to RealPage Market Analytics. That inventory increase is roughly 75% above the five-year average annual inventory expansion rate (4.7%). Once annual completion levels crest, deliveries are projected to fall below the five-year average in late 2025 before hovering around 2% inventory growth through 2027. For historical perspective, the existing unit base in Charleston saw its existing unit base accelerate from 47,637 units to 75,572 units from 3rd quarter 2014 to 3rd quarter 2024 – climbing 57% in a decade. Just over the last five years, inventory climbed more than 26%. Strong job growth and demographics across this Sun Belt metro supports housing demand. The Charleston metro ranked in the top 10 markets for job growth in the year-ending September 2024 with a 4.2% increase over the 12-month period. Meanwhile, population grew 8.0% from 2017 to 2022, based on U.S. Census data.

Southern Metros Dominate Top Job Gain List

2026-03-04T06:52:58-06:00

The Census Bureau’s South region took five spots on the top 10 job gain list in October. According to the Bureau of Labor Statistics’ monthly report, Washington, DC and Charlotte jumped on to this month’s top 10 list, joining returning Houston, Dallas and Atlanta. New York and Philadelphia in the Northeast region and Los Angeles and Phoenix in the West returned as well. The Midwest’s Indianapolis metro returned but St. Louis and Riverside both dropped from the top 10. @include('site.elements.media.image', ['fileId' => 28705, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '613']]) Generally, employment gains are continuing to slow, with the sum of the top 10 metros’ gains down 12% from last month (460,900 jobs in October compared to 523,800 jobs in September). The New York-White Plains metro division continues to be the top job creation market with 101,000 new jobs in the year-ending October. This was still the only metro with 100,000 plus jobs added. Texas’ major metros of Houston (60,200 jobs gained) and Dallas (53,800 jobs gained) returned at #2 and #3, while Los Angeles (45,900 jobs gained) followed at #4. Phoenix nearly tied Los Angeles with a gain of 45,100 jobs through October and remained in the top five, while Philadelphia moved up a spot to #6 with 37,000 jobs created. Newcomers Washington, DC and Charlotte had solid job gains of 32,900 and 29,300, respectively, as Atlanta (28,700 jobs gained) and Indianapolis (27,000 jobs gained) saw their annual employment gains slow by more than 6,000 jobs each. As further evidence of a cooling jobs market, the next 10 markets (#11 through #20) of RealPage’s top job gain markets saw total gains drop 13.3% from their annual sum from September. Only New York exceeded 100,000 jobs gained for the year and only two gained between 50,000 and 99,999 jobs, one less than last month. Thirteen of our top 150 markets reported annual job losses or no gain for the year, which was two more than last month. Maj...

Apartment Demand Catching Up to Supply in Southeast

2025-12-04T08:09:20-06:00

Apartment demand has been significant in the Southeast and is catching up to record supply levels. The Southeast region of the country, which covers markets across Florida, Georgia, Alabama, South Carolina and North Carolina, has seen sizable supply volumes recently. Roughly 111,200 units delivered in this region in the year-ending 3rd quarter 2024. Atlanta was the region leader with over 25,000 units coming online in the past year. Meanwhile, apartment demand across the Southeast has been catching up as the region absorbed more than 93,600 units in that same time frame. Again, Atlanta was the region’s leader for demand, with 20,100 units absorbed in the past year. While demand is still about 17% behind concurrent supply volumes in the Southeast, that marked a significant improvement from the 80% delta from one year earlier. In the near term outlook, demand is expected to get even closer to supply, closing the gap even further.

Analyzing Apartment Performance in Phoenix’s Highest Supply Neighborhoods

2026-03-04T06:52:58-06:00

The Phoenix apartment market has been growing at one of the fastest paces in the nation, adding an incredible 22,800 units over the past year alone. And it’s not just the last year that supply has been elevated. Apartment inventory in Phoenix has grown by 18.8% in the last five years, according to data from RealPage Market Analytics. A handful of submarkets within Phoenix, however, stand head and shoulders above that growth rate. Of the 23 submarkets in Phoenix, seven have grown total inventory above the market average during that time period. @include('site.elements.media.image', ['fileId' => 28604, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '805']]) Topping this list is the Avondale/Goodyear/West Glendale submarket, where inventory has nearly doubled in the last five years, growing almost 94% since 3rd quarter 2019. And what’s more – this submarket will grow by another 35% in the coming year. Avondale/Goodyear/West Glendale is the largest submarket in Phoenix with nearly 40,000 existing units, primarily of Class B stock. Rents here are in line with the market average of $1,551 as of 3rd quarter 2024. Under pressure from so much new supply, occupancy here was lower than usual in 3rd quarter at 92.1%, and effective asking rent cuts were deeper than the market average of 4.2%. As such, concession usage – both as a percentage of asking rent and as a percent of units offering concessions – ran higher than the Phoenix market average. Central Phoenix, which encompasses the market’s urban core, is predominantly Class A stock and, as such, has one of the higher effective asking rents in the market. Monthly rents here average $1,783, the third highest in the market after North and South Scottsdale. Occupancy in Central Phoenix during 3rrd quarter registered at one of the lower rates in the market at 92%. Concession usage – both average days free and ratio of units offering a concession – ran higher than the Phoenix average. Gilbert, Peoria/Sun Cit...

RealPage Economy Express Episode 39

2025-01-22T03:13:48-06:00

Episode 39: The Fed lowered its benchmark rate, fueling an increase in mortgage applications. Labor strikes and Hurricanes Helene and Milton hindered employment growth, and the U.S. job market showed little movement in October. The Bureau of Labor Statistics reported just 12,000 jobs were added to payrolls, holding the unemployment rate steady at 4.1%. After easing for six months, inflation inched up slightly in October. The Consumer Price Index for All Urban Consumers measured by the Bureau of Labor Statistics rose 0.2% in October and 2.6% in the past year, driven by shelter costs. The Federal Reserve lowered its benchmark rate by a quarter point, providing potential relief in mortgage rates, auto loans and credit card interest rates. Mortgage applications increased by 0.5% for the week-ending November 8. Mortgage rates reached 6.86% for a 30-year fixed-rate mortgage. Construction spending reached $2.15 trillion in September, up slightly from August. Residential construction edged up 0.2%, while nonresidential construction saw a small decline. Public construction spending increased, especially in educational and highway projects. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

Indianapolis Apartment Construction Starts Plunge

2026-03-04T06:52:58-06:00

After several years of elevated construction activity, apartment construction starts in Indianapolis fell notably in 2024. Only about 1,300 or so units started construction in Indianapolis in the year-ending 3rd quarter, according to data from RealPage Market Analytics. That was the smallest volume of apartments to get off the ground in a single year since 1st quarter 2020. @include('site.elements.media.image', ['fileId' => 28556, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Annual starts in Indianapolis started to increase in 2021, getting as high as 6,000 units in 2022 and 2023. But in fact, starts have been elevated in much of the past ten years or so, averaging at about 3,090 units annually. In the decade before that (2004 to 2014), annual starts were milder, averaging closer to the 1,600-unit mark. Thus, starts of 1,300 units in the past year seems to be a return to more historical trends. Out of 13 Indianapolis submarkets, only two saw apartment stock get off the ground in the year-ending 3rd quarter. Roughly 976 units started in the large northern submarket of Carmel/Hamilton County, while starts totaled 325 units in the small Downtown Indianapolis submarket. In contrast, just a year ago, starts were much more spread out, with eight submarkets getting underway on at least some units. With its low cost of living and high quality of life, Indianapolis has seen solid population and employment growth in recent years. Demand for apartments has also been strong, despite competition from a relatively affordable single-family housing market. It’s not surprising, then, that supply has been elevated in Indianapolis. Nor is it surprising that demand is catching up quickly to those record volumes. New supply in Indianapolis totaled about 5,760 units in the year-ending 3rd quarter. That was the highest level since RealPage Market Analytics began tracking the market nearly 25 years ago. @include('site.elements.media.image', ['fileId' =>...

Inflation Ticks Up After Easing for Six Consecutive Months

2025-01-22T03:13:48-06:00

The annual rate of inflation in October registered higher than in September when the Federal Reserve began cutting interest rates amid signs of cooling prices. The price of goods and services paid by U.S. consumers rose 2.6% in the year-ending October, according to the Consumer Price Index (CPI) for All Urban Consumers measured by the Bureau of Labor Statistics. While that was in line with economist’s expectations, it was up from the 2.4% annual inflation rate the previous month which was the smallest 12-month increase since March 2021 (2.6%). The recent upturn followed six months of easing after inflation clocked in at 3.5% in March 2024. Still, inflation has cooled considerably since reaching a 40-year high of 9.1% in June 2022. For comparison, the inflation rate averaged 1.6% annually in the five years leading up to the COVID-19 pandemic (2015-2019). The Fed’s current target rate for inflation is 2%. Core inflation, which strips out volatile costs of food and energy, was up 3.3% year-over-year in October, matching the rate the previous month and marginally above the 3.2% annual increase in both July and August which were the lowest rates since April 2021. The cost of shelter, which is keeping the overall inflation rate elevated, rose 4.9% from a year ago. Still, that was one of the slowest increases in more than two years. However, the shelter index has a well-documented lag effect. Excluding the cost of shelter, consumer prices were up just 1.3% year-over-year in October.

Small Markets Scheduled to Get All-Time High Apartment Supply in 2025

2025-01-22T03:13:48-06:00

A handful of apartment markets are set to receive their highest supply volumes on record in calendar 2025, and most of those are smaller markets. Asheville is scheduled to see 3,549 units deliver in calendar 2025, which marks the highest delivery load in the RealPage Market Analytics data set and translates to the highest annual inventory increase in the nation at 13.3%. It’s no surprise to see Asheville top this list, as this market has grown at one of the fastest clips nationwide in the past 10 years. Still, even in a decade of elevated supply, the small North Carolina market’s annual delivery volume has averaged below 1,000 units. Boulder is expected to see its apartment base climb by 1,158 units in 2025, which would increase its existing base by 3.6%. Fort Wayne, IN is scheduled to gain 804 units, with an increase of 2.8%. On the West Coast, Oxnard, CA is scheduled for a 2025 delivery volume of 1,285 units, for 2.9% growth. And on the East Coast, the apartment base in Trenton, NJ is expected to grow by 4.9% with the addition of 1,490 units. In addition to these smaller markets, major markets set to see peak supply in 2025 include Columbus, Greensboro/Winston-Salem and New York.

Demographics Favor Apartment Demand in Small Utah Market of Provo-Orem

2026-03-04T06:52:58-06:00

Provo-Orem has been one of the nation’s fastest growing apartment markets recently. And all that new stock has taken its toll on market fundamentals. Yet, demand for apartments – buoyed by a rapidly growing population and steady job increases – reached a five-year high recently. Provo-Orem, situated in the Utah Valley, borders Salt Lake City/Ogden/Clearfield to the north. Downtown Salt Lake City is a 45-minute drive from downtown Provo and a 40-minute drive from downtown Orem. The Provo-Orem apartment market, with roughly 28,500 apartment units, is about one-fifth the size of Salt Lake City/Ogden/Clearfield. @include('site.elements.media.image', ['fileId' => 28464, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Provo-Orem is home to several large universities supplying a healthy dose of young adults in the renter pool and providing lots of jobs. Utah Valley University is the largest public university in the state of Utah with an enrollment of nearly 50,000 students. Brigham Young University (BYU), a private university operated by the Church of Jesus Christ of Latter-day Saints (LDS Church), has an enrollment of more than 35,000 students. Both those universities employ thousands of people in Provo-Orem. Utah Valley Hospital is another major employer in the area, with roughly 400 beds and employing more than 800 people. Other hospitals in the area include American Fork Hospital, Mountain View Hospital, Spanish Fork Hospital and Timpanogos Regional Hospital. With major universities and health care establishments, it’s no surprise that Education/Health Services is the largest employment sector in Provo-Orem, accounting for 22% of the metro’s jobs. That’s a much larger share than the national average of 17%, based on data from the Bureau of Labor Statistics. @include('site.elements.media.image', ['fileId' => 28529, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Other major industries in Provo that have a larger...

Florida Apartment Demand Rebounds in 2024, Catching Up to Supply

2026-03-04T06:52:58-06:00

Across the state of Florida, apartment demand volumes are catching up to elevated supply. Florida was a state that benefitted heavily from the work-from-home trend seen during the pandemic. Since then, migration into the state has continued, with even the smaller markets gaining notable ground. Apartment demand volumes peaked in 2021 and then slowed significantly in 2023 before picking back up again. Meanwhile, Florida has been among the nation’s fastest growing states for apartment supply in recent years. While completion volumes continue to grow, demand is rapidly catching up. @include('site.elements.media.image', ['fileId' => 28400, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Roughly 77,600 units came online in Florida in the year-ending 3rd quarter, according to data from RealPage Market Analytics. That was the biggest annual completion tally in Florida since RealPage has been tracking apartment markets in the state. In comparison, Florida’s five-year average for annual deliveries clocked in at just over 48,700 units. Meanwhile, after its annual peak in 2021, apartment demand in Florida has gone through some peaks and valleys. More recently, demand is headed once again for a peak. In the year-ending 3rd quarter, Florida demand reached nearly 68,000 units, very close to record supply volumes. A handful of Floria apartment markets have seen incredible inventory growth recently. In fact, since 2020, nine of the nation’s 30 fastest growing apartment markets were in Florida. Lakeland saw its inventory increase by 39% over the past four years, ranking #2 nationwide behind only Huntsville, AL. Other Florida markets ranking within the nation’s top quintile for inventory growth since 2020 were Cape Coral (28%), Sarasota, Jacksonville, Palm Bay, Port St. Lucie, Deltona, Orlando and Pensacola (all around 20%). @include('site.elements.media.image', ['fileId' => 28490, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '717'...

Rent Cuts Found in Nation’s Highest Supply Submarkets

2026-03-04T06:52:58-06:00

As rent growth is a byproduct of supply and demand, the apartment markets adding the most new supply are also the ones most likely to be cutting rents. That relationship has been on display throughout the current supply wave, and it becomes even more apparent when drilling down to the neighborhood level. Among the nation’s 50 largest apartment markets, RealPage Market Analytics tracks 706 individual submarkets. Of those 706 submarkets, 16 have seen total apartment inventory grow by at least half since the onset of the pandemic in 1st quarter 2020. Unsurprisingly, these fast-growing submarkets are overwhelmingly located in the Sun Belt where demographic tailwinds from the past few years favor housing demand of all types. @include('site.elements.media.image', ['fileId' => 28411, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '717']]) Those same submarkets were more likely to be cutting rents, compared to marginal rent growth nationally of 0.3% in the year-ending October. In fact, of the 16 submarkets where inventory has grown by half or more since the pandemic, all but one reported rent cuts on an annual basis as of October. The lone exception was Washington, DC’s Navy Yard/Capitol South where rents were growing 2.3% annually as of October. Still, that falls well below the market average of 3.3% in DC. @include('site.elements.media.image', ['fileId' => 28373, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '717']]) In Austin’s Cedar Park, rents have been cut 11.2% in the year-ending October 2024, which underperformed marketwide rent cuts of 8.1% in Austin during that same period. Cedar Park has added over 8,200 apartment units since early 2020, translating to a nearly 58% increase. Similarly in Jacksonville, rents were cut 4.1% in the year-ending October, but in the fast-growing St. Augustine submarket, rent cuts reached 6.4% as total inventory in that submarket has grown by over 58% in less than four years. Meanwhile, in all 1...

Some Perspective on the 50-Year Peak in Apartment Supply Volumes

2025-01-22T03:13:48-06:00

We’ve been talking a lot about apartment supply volumes hitting a 50-year peak recently. But to really appreciate what we mean by that, let’s look at what was happening in the world last time apartment supply volumes were this high. In the year-ending 3rd quarter 2024, over 557,800 units were delivered across the U.S., according to data from RealPage Market Analytics. The last time this many new apartments came online in a single year was 1974. Back then, most of us on the editorial staff were not yet born. Not to brag. President Nixon resigned after the Watergate scandal. Hank Aaron broke Babe Ruth's career home run record. West Germany won the World Cup in soccer. East Germany was also in the running for the title. The sitcom Happy Days premiered. Disco was becoming popular in the U.S. Blazing Saddles and Godfather II debuted at the box office (one later won the Oscar for Best Picture), and Stephen King published his first novel. While annual apartment supply volumes came close in 1986 – the year the Chernobyl disaster took place – deliveries faded to more reasonable levels after that, until climbing notably in more recent years.

Seasonally Normal Rent Cut Appears in October

2026-03-04T06:52:58-06:00

Effective asking rents for professionally managed apartments inched up just 0.3% in the year-ending October 2024, with change measured on a same-store basis. Annual rent growth in the U.S. apartment market has remained mild – at no more than 0.4% – for the past 14 consecutive months, according to data from RealPage Market Analytics. Effective rents declined 0.4% on a monthly basis, which is very similar to the monthly rent cut of 0.6% seen one year ago in October 2023. As we near the end of the calendar year, it’s common for rents to be cut in the colder months as fewer renters move and operators focus more on preserving occupancy and keeping units full. Year-to-date rent change – which removes seasonally normal rent cuts from late 2023 – indicates rents have grown 1.3% nationally in the first 10 months of 2024. At the same time, median rent-to-income ratios continue to tick down as wage growth outpaces inflation. The national median rent-to-income ratio for professionally managed apartments hovered at 22.5% in October, calculated on a trailing 12-month basis. That rate has been consistently ticking down over the last two-plus years as wage growth has begun to outpace inflation. Renewal conversion continued to trend up. Just over 54% of expiring leases were renewed nationally as of October, calculated on a trailing 12-month basis. @include('site.elements.media.image', ['fileId' => 28296, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '1233']]) Apartment occupancy remained stable month-over-month, after ticking up at the end of prime leasing season to stand closer to historically normal levels. As of October, U.S. apartment occupancy stood at 94.8%. Regionally, the highest supply area of the country, the South region, again claimed the lowest apartment occupancy at 93.9% in October. As usual, the Northeast claimed a characteristically high occupancy rate of 96.2% in October. Occupancy stood at 95.4% and 95.2% in the Midwest and West, respectiv...

Denver Apartment Construction Starts Plunge

2025-01-22T03:13:48-06:00

New apartment construction starts have dropped significantly in Denver. Only 3,169 units started construction across the Denver apartment market in the year-ending 3rd quarter, according to data from the U.S. Census Bureau. That volume was down 70% year-over-year and was 82% behind the recent peak of 17,781 units started in the year-ending 3rd quarter 2022. The 3,169 units started in the past year represent only about 1% of all existing stock. Since the Great Financial Crisis of 2007 and 2008, Denver has stated at least 4% of existing supply annually, but peaked above 10% in 2022. While starts are falling off, however, ongoing construction is still significant in this market. As of 3rd quarter 2024, just over 17,600 units were under construction in Denver, according to RealPage Market Analytics. Those units are expected to increase the existing apartment base by 5.1% in the near future. Denver just missed a top 10 ranking for scheduled inventory increases. Leading the nation as of 3rd quarter were Charlotte and Phoenix, with inventory expected to grow 10% to 13% in those markets.

Hurricanes and Labor Strike Disrupt U.S. Job Market in October

2026-03-04T06:52:58-06:00

U.S. employers kept their payrolls essentially unchanged in October and the unemployment rate held steady. The data, which is based on statistics from two monthly surveys taken in September and October, was impacted by two hurricanes and a labor strike at Boeing. However, the effects from those disruptions should be temporary. @include('site.elements.media.image', ['fileId' => 28202, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Employers added roughly 12,000 workers to payrolls in October 2024, according to a survey of businesses by the Bureau of Labor Statistics. Those additions came in well below the 223,000 jobs gained in September (which was revised down) and were well below what economists were forecasting (+100,000 jobs to +110,000 jobs). Still, the U.S. economy has now added jobs for 46 consecutive months, the fourth-longest period of job base expansion on record dating back to 1939. Of note, the job counts for both September and October were revised down. Downward revisions to August 2024 data showed 81,000 fewer jobs were added than previously reported, down to 78,000 positions. The September 2024 job growth number was revised down by 31,000 jobs to a total of 223,000 positions. With these revisions, employment gains in August and September combined were 112,000 jobs lower than previously reported. @include('site.elements.media.image', ['fileId' => 28201, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Job gains in October were lower than the monthly average of around 194,000 jobs added over the previous 12 months and came in well below pre-pandemic norms. From 2015 to 2019, the U.S. economy added an average of roughly 190,000 jobs each month. On an annual basis, the nation gained roughly 2.17 million jobs as of October 2024. That was the weakest annual gain since March 2021 and registered below the pre-pandemic average of around 2.4 million jobs added annually from 2015 to 2019. The U.S. economy...

RealPage Economy Express Episode 38

2025-01-22T03:13:48-06:00

Episode 38: Positive data points to a steady market. Will the Fed hold or cut rates again in November? The U.S. added 233,000 new private sector jobs in October, and annual pay was up 4.6%, according to the ADP National Employment Report. Also indicating a strong labor market, initial unemployment claims for the week-ending October 26th dropped by 12,000 claims. The Conference Board’s Consumer Confidence Index saw an increase, rising to 108.7 in October from 99.2 in September. This was the most notable monthly gain since March 2021. September building permits were down 2.9% from the previous month. While existing home sales were down by 1% from August, pending home sales rose by 7.4% in September. Single-family home prices were up 4.2% in August, according to the S&P CoreLogic Case-Shiller Index. Real GDP rose at a solid 2.8% annual rate in 3rd quarter. This strength was fueled by consumer spending and federal government investments. Inflation remained near the Fed’s target at 2.1%. A rate cut could be coming again in November, but recent data may cause the Fed to hold steady. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

Apartment Supply Peaks in Houston

2026-03-04T06:52:57-06:00

After a decade of elevated apartment construction volumes, supply has peaked in Houston and deliveries are scheduled to fade to more normal levels in the coming years. In the year-ending 2nd quarter 2024, over 25,000 apartment units delivered in Houston, according to data from RealPage Market Analytics. This was the market’s highest annual completion total since the 1980s. In 3rd quarter 2024, annual deliveries faded to – a still significant – 24,900 units. Looking forward, completion volumes are scheduled to fade even further. @include('site.elements.media.image', ['fileId' => 27949, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) This slight decline in Houston’s annual supply volumes comes after a decade of elevated construction activity. Annual delivery totals have averaged over 16,700 units in the past 10 years (2014-2024), hitting big waves above the 20,000-unit mark in 2017 and again in 2021. In the decade before that (2004-2014), annual supply in Houston averaged closer to 9,200 units. In the coming three years, annual supply volumes in Houston are expected to average at 13,400 units, with annual deliveries falling below the 10,000-unit mark by late 2026. This will put the market back on track with more historical norms. Across the entire state of Texas, apartment starts plummeted in 3rd quarter 2024, indicating that supply will be subdued for the coming couple of years statewide. Houston Submarkets with Big Supply Submarket across Texas have seen sizable completion volumes recently. Among Houston’s 35 submarkets, all but seven had at least some new apartment deliveries in the year-ending 3rd quarter. Katy was the market leader, with over 3,000 units completed in the past year. This single submarket delivered more units in the last 12 months than 13 of the nation’s largest 50 apartment markets. In fact, annual completions in Katy doubled the stock delivered in Greensboro, Pittsburgh and Memphis in the last year. Houston submar...

Worcester Apartment Supply Hits Record High

2025-01-22T03:13:48-06:00

The small Massachusetts market of Worcester delivered its highest-ever volume of apartment supply in the past year. In the year-ending 3rd quarter, more than 1,160 units were delivered in Worcester, marking a 2.2% increase in total apartment inventory, according to data from RealPage Market Analytics. That was the highest volume on record in the RealPage data set, which goes back to 2000. Worcester, which has a total inventory of about 55,000 apartment units, is about an hour southeast of Boston. The market, which encompasses approximately the middle third of Massachusetts and some parts of north central Connecticut, has a population just under 800,000 residents. Additionally, Worcester boasts decent job growth, with a 1.7% increase to total employment in the year-ending 3rd quarter 2024. Still, based on the latest U.S. Census data, the population here shrank nearly 12% from 2021 to 2022.

Slowing Multifamily Hinders Total Residential Starts

2026-03-04T06:52:58-06:00

Annualized multifamily starts peaked in 2022, and the current wave of apartment development has begun to slow. Multifamily starts have seen double-digit annual decreases in 13 of the past 16 months. According to the latest report from the U.S. Census Bureau and the Department of Housing and Urban Development, annualized multifamily starts of 317,000 units were down 4.5% from August’s annual figure and down 15.7% from last September. Despite recent increases in the 30-year mortgage rate, annualized single-family starts were up 2.7% for the month and 5.5% for the year at 1.027 million homes. However, the falling starts rate for multifamily units resulted in a 0.5% decrease in total residential starts from last month and a similar 0.7% decrease for the year to a rate of 1.354 million units. @include('site.elements.media.image', ['fileId' => 27994, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Meanwhile, multifamily permitting fell 10.8% in September from August to 398,000 units, down 17.4% for the year. Single-family permitting ticked up 0.3% from last month to 970,000 units, but that was still down 1.2% from last September. Together with the small two-to-four-unit category, total permitting declined 2.9% from August to 1.428 million units and were down 5.7% year-over-year. Multifamily completions dipped 8.7% from August to 671,000 units but are up almost 42% from last year. Single-family completions were down 2.7% for the month but up 1.6% for the year to one million units. The rate for multifamily units under construction fell 3.5% for the month and 16.8% for the year to 825,000 units. The number of single-family units under construction increased a slight 0.3% from August to 642,000 units but were down 4.5% from one year ago. @include('site.elements.media.image', ['fileId' => 27993, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '407']]) Compared to one year ago, the annual rate for multifamily permitting decrease...

Top Performing Student Housing Campuses Since the Pandemic

2026-03-04T06:52:57-06:00

This student housing performance cycle, which began in 2020, has already recorded some extreme variations in performance from highest of highs to lowest of lows. Since Fall 2020, several schools have consistently outperformed the national norm for purpose-built student housing pre-leasing and rent growth. Unsurprisingly, these outperforming schools were generally located in states with fast-growing populations, and tended to be state flagship universities with large enrollments – though not exclusively. @include('site.elements.media.image', ['fileId' => 27938, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '721']]) From Fall 2020 to Fall 2024, these 14 schools have outperformed the national average for pre-leasing, usually to stand at or slightly below 100% leased as of August. Additionally, these 14 schools have grown rents at a higher rate than the national average over the last five years among the core 175 universities tracked by RealPage. @include('site.elements.media.image', ['fileId' => 27941, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '531']]) Several of these top performing schools are located in quintessential college towns. From Norman, OK and Chapel Hill, NC to West Lafayette, IN and Blacksburg, VA, these are the types of locales that tend to have more limited shadow market (also called student competitive) supply, strengthening demand in the purpose-build student housing sector. Further, these are the types of schools that have large and growing enrollment bases, despite some softness in enrollment nationally.

Midwest Markets Among Top Job Gain List in September

2026-03-04T06:52:57-06:00

Two Midwest region markets were among the nation’s leaders for annual job gains in September. According to the Bureau of Labor Statistics’ monthly report, Indianapolis and St. Louis gained enough employment to be among the leaders for this month’s list. These two Midwest markets join two from the Northeast region, three from the South and three from the West. @include('site.elements.media.image', ['fileId' => 27872, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '613']]) Eight of August’s top 10 job gain markets returned to September’s list with only four remaining in the same order, but the sum of jobs gained for the top 10 was down 13.7% from last month as the employment market continues to slow. Of course, the New York-White Plains metro division once again led the nation in employment gains. New York’s annual total through September of 106,700 new jobs was about 49,000 fewer than August’s 12-month total gain. Houston returned at #2 with a gain of 75,100 jobs through September, down 7,700 jobs from August’s total, and down 28,000 jobs from last year. Dallas jumped back up the top 10 list to land at #3 in September with an annual gain of 60,400 jobs, an improvement of almost 19,000 jobs from August. Los Angeles followed Dallas at #4, gaining 60,300 jobs for the year, close to Dallas’ figure but a decrease of 16,000 jobs from last month’s annual gain. Phoenix remained in the #5 spot with 43,500 jobs gained, down almost 10,000 jobs from last month and 17,900 jobs less than last September. Atlanta returned to its #6 spot with 43,000 new jobs, close to the same gain figure from last month and last year. Philadelphia dropped to the #7 spot with an employment gain of 41,800 jobs, down more than 20,000 jobs from August’s total. Indianapolis jumped onto this month’s top 10 list at #8 with 35,900 jobs gained, almost 4,000 more than last month and 7,700 more jobs gained than a year ago. Riverside was also a newcomer to the September top 10 list at...

Half of the Submarkets in Texas Growing Faster Than U.S. Average

2025-01-22T03:13:47-06:00

Half the submarkets across the state of Texas are growing local apartment inventories faster than the U.S. norm. In the year-ending 3rd quarter, nearly 560,000 units wrapped up construction in the U.S. overall, translating to an annual inventory growth rate of 2.8%, according to data from RealPage Market Analytics. The four major apartment markets in Texas – Houston, Dallas/Fort Worth, Austin and San Antonio – all saw inventories grow faster in the past year. Austin was the national leader in inventory growth at a stunning 8.9%. San Antonio saw growth of 4.8%, while the Dallas/Fort Worth metroplex saw its combined inventory climb 4.4%. Houston was nearest the national norm with inventory growth of 3.3%. Meanwhile, smaller Texas apartment markets outside of the largest metros logged an average inventory growth rate closer to 1.5%. Among the 130 or submarkets across the state of Texas, 50% logged inventory growth of more than the national average of 2.8%. The biggest inventory growth rates were seen in Ellis County in Dallas/Fort Worth, at 24%, while Austin’s Round Rock/Georgetown logged the second biggest upturn in Texas with a boost of 19%.

Texas Apartment Starts Hit 14-Year Low in 3rd Quarter

2026-03-04T06:52:57-06:00

The number of apartments that got underway in Texas in 3rd quarter registered significantly below what the state has seen historically. In fact, quarterly starts hit a 14-year low. A staggeringly few 4,200 units started across the state of Texas in 3rd quarter 2024, according to data from the U.S. Census Bureau, aggregated by RealPage. The last time the quarterly volume of starts was this low was back in 4th quarter 2010. @include('site.elements.media.image', ['fileId' => 27492, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) At first glance, just 4,200 units starting construction across the entire 268,000 or so square miles of Texas seems like a typo, since starts have averaged closer to 20,600 units per quarter in the past three years. In fact, just two years ago, the Austin market on its own saw starts get close to 7,000 units in 3rd quarter 2022. Fast forward to 3rd quarter 2024 and starts across the entire state were about a third of that volume. Most recently, quarterly construction starts peaked at over 32,000 units in 2nd quarter 2022 in the state of Texas. In the past 12 months overall, a total of just 42,000 total market-rate units have started across the Lone Star State. That was a 12-year low, as it was the lowest volume of annual starts dating back to 2012 in the Lone Star State. The most recent peak in annual starts volumes was in 4th quarter 2022, when more than 115,000 units got off the ground in Texas. Since then, the state’s volume of annual construction starts have been steadily falling by an average of 7,000 units per quarter. This slowdown in starts comes as the state of Texas is experiencing the nation’s most prolific supply wave in the past year. For more information on the state of apartment markets in Texas, including forecasts, watch the webcast Market Intelligence: Q4 Texas Update.

Nashville Apartment Demand Peaks as Job Growth Slows

2025-01-22T03:13:47-06:00

Nashville was one of a handful of major apartment markets nationwide to see apartment demand hit an all-time high in the year-ending 3rd quarter. However, unlike most of the other markets on that list, Nashville has seen muted employment growth recently. Apartment demand peaked at 11,408 units in the past year, the highest the market has ever seen, according to data from RealPage Market Analytics. Nashville job growth, meanwhile, climbed by just 0.8% in the past year, according to the Bureau of Labor Statistics. Job growth in Nashville has slowed notably since peaking above 11% in the year-ending 2nd quarter 2022. In fact, in the past year specifically, Nashville saw one of the most significant slowdowns in job growth nationwide. Only 9,100 jobs were gained in Nashville in the year-ending August 2024, which was 13,800 fewer jobs than the market gained in the year-ending August 2023. Demand and supply are still running side-by-side, however. Roughly 12,700 units were delivered here in the past year, which is a slowdown from what the market has completed in recent years.

RealPage Economy Express Episode 37

2025-01-22T03:13:47-06:00

Episode 37: Consumer spending is holding strong, inflation is easing, and the labor market remains robust. Mortgage applications for new home purchases increased 10.8% from September 2023 to September 2024, according to the Mortgage Bankers Association’s Builder Application Survey. Retail sales rose 0.4% in September, surpassing expectations and up from August’s 0.1% gain. The Consumer Price Index for All Urban Consumers increased 0.2% in September, mirroring the gains in August and July. The Producer Price Index for final demand remained unchanged in September after a 0.2% increase in August. Initial unemployment claims for the week-ending October 12 decreased by 19,000 claims to stand at 241,000, beating expectations. The four-week moving average edged up by 4,750 to 236,250. Despite recent hurricanes, claims in both Florida and North Carolina declined after a spike the previous week. As consumers remain frustrated with high prices, The University of Michigan’s Consumer Sentiment Index for October slipped to 68.9 from September’s 70.1. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

Universities Receiving the Most New Student Housing Supply in 2025

2026-03-04T06:52:57-06:00

Eight universities are expected to receive over 1,000 new student housing beds in Fall 2025, led by an astounding 2,565 beds expected at the University of Tennessee. In total, approximately 26,000 beds are expected to come online across the core 175 universities tracked by in Fall 2025. That compares to about 35,000 beds delivered in Fall 2024. Since Fall 2021, supply in the student housing world has averaged about 33,000 beds annually, compared to roughly 50,000 beds annually during the 2010s cycle. @include('site.elements.media.image', ['fileId' => 27849, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '829']]) That means that the University of Tennessee alone will receive about 10% of the nation’s expected student housing stock in Fall 2025. Other supply leaders, including the University of Minnesota, North Carolina State, University of Michigan and the University of Texas at Austin, tend to be state flagship schools with massive – and growing – enrollments. UT Austin was also a supply leader in 2024. In fact, by the start of Fall 2025, UT Austin will lead the nation in deliveries this cycle. From 2020 to 2025, some 10,000 beds will be delivered there. Additionally, most Fall 2025 supply leaders have also gotten a fair bit of new student housing supply earlier in this cycle. Only a few supply leaders for this coming year are places where no new supply has delivered over the last decade or so, including schools such as Texas Woman’s University, University of Connecticut, Arizona State University’s downtown campus and the University of Alabama in Huntsville. Huntsville’s conventional apartment market, meanwhile, has also been experiencing massive volumes of new supply lately.

Markets with Apartment Demand at All-Time Highs

2026-03-04T06:52:57-06:00

The U.S. apartment market absorbed 488,773 units in the year-ending 3rd quarter 2024, buoyed by an incredible 192,649 units of demand in the July to September time period. Fueling strong national demand, several of the nation’s 50 largest apartment markets recorded their biggest demand volumes on record in 3rd quarter, including many fast-growing Sun Belt markets. Markets that claimed all-time high apartment demand in the year-ending 3rd quarter 2024 were Phoenix, Charlotte, Raleigh/Durham, Nashville, Jacksonville, Las Vegas and Salt Lake City, according to data from RealPage Market Analytics. @include('site.elements.media.image', ['fileId' => 27381, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '571']]) These seven markets have several tailwinds aiding their record demand performances. For one thing, they’re all experiencing favorable demographics to support housing demand. Populations in these seven markets have all grown at rates at least double (and in some cases, triple) the national norm since 2017, according to the U.S. Census Bureau. Raleigh, Nashville and Jacksonville have all grown total populations over 10% in the five-year period ending in 2022, which is the latest Census data available. Nationwide, population growth during that time was 3.1%. Job growth tends to run higher and unemployment tends to run lower than national averages in these markets, further supporting housing demand. These markets have also experienced a recent apartment supply boom. All these markets grew total apartment inventory at a rate above the national norm of 2.8% in the year-ending 3rd quarter 2024 – except Las Vegas, which grew total inventory a bit behind the average at 2.4%. Among top 50 markets, those that grew apartment inventory most in the last year were Austin (8.9%), Raleigh (7.8%), Nashville and Jacksonville (both 7%), Salt Lake City (6.5%) and Phoenix (5.6%). Additionally, five major markets recorded all-time high apartment demand in the Jul...

Apartment Supply Surges in Portland in 2024

2025-01-22T03:13:47-06:00

Apartment deliveries increased significantly in the small Maine town of Portland in 2024. Over 1,080 units delivered here in the year-ending 3rd quarter. While that might be minor compared to deliveries in some larger markets nationwide, Portland has a total existing unit base of a little less than 30,000 units. And in the past ten years, completions in Portland have averaged less than 400 units annually. This recent supply increase registered at more than double that long-term average. In fact, in the more than two decades RealPage Market Analytics has been tracking the market, Portland has never delivered over 1,000 units on an annual basis, until 2024. With a population of about 552,900 people, Portland is the most populous city in the state of Maine, according to the most recent data from the U.S. Census Bureau. That population increased by a sizable 5.2% between 2017 and 2022. Portland has a rich maritime and military heritage and is heavy in Education and Health Services jobs.

Increased Shadow Market Availability Gives Students More Options

2026-03-04T06:52:57-06:00

Student housing renters have more housing options close to campus these days. Student competitive supply, which RealPage defines as any conventional apartment unit within three miles of a college campus, finally has enough vacancy to give student renters more options for their living situations. Many operators also refer to this supply as the shadow market. As of August 2024, about 350,000 student competitive beds sat vacant across the U.S., marking a meaningful increase from extremely low vacancy in 2021 and 2022. @include('site.elements.media.image', ['fileId' => 27048, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) This comes on the heels of record low availability of about 3% of student competitive beds in summer 2021. Students were finally back on campus at that time, after the COVID-19 pandemic, and demand for student housing at that time ran alongside unprecedented apartment demand in the conventional market. That altogether fueled an insatiable demand wave for student competitive assets. Demand began to normalize throughout the next 12 months, leading to about 92,000 additional unoccupied student competitive beds nearby college campuses by August 2022. But considering when most student leases are signed, there was still exceptionally limited availability of student competitive beds until about May 2022. In 2023, signs of normalization emerged. Boosted demand across campuses appeared to slow as the class of Fall 2020 entered their senior year of undergrad. Meanwhile, more like 325,000 total student competitive beds were available in August 2023, a 27% increase from the year before. Competitive vacancy has leveled off, ending the Fall 2024 leasing season with just 25,000 additional vacant beds than the start of the year, translating to about 8% more available beds over last year. All that availability means student demand could be spread throughout the competitive space, in addition to the purpose-built student space.

Updated RealPage Forecast Indicates Strong Demand, More Mild Rent Growth

2026-03-04T06:52:57-06:00

Editor's note: This article was updated on October 16 to reflect more accurate data calculations by RealPage. After starting the quarter below its long-term average, employment ended September on a high note, with an increase of nearly 254,000 jobs. This brings the total number of jobs created in the first nine months of the year to 1.8 million, which is 24% below the level seen during the same period last year. As inflation has been on a downward trajectory for some time now, average hourly earnings have been gaining lately, increasing 4% on an annual basis in September, indicating that real wages are moving up too. @include('site.elements.media.image', ['fileId' => 27462, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) These recent developments have reflected positively on demand for apartments, as absorption during 3rd quarter topped 192,000 units, bringing the total number of units absorbed so far in 2024 to over 488,000. We believe that strong demand will continue well into 2025, rising about 5% above the 2024 level, according to RealPage. Supply, on the other hand, is expected to remain high in the next 12 months. As of 3rd quarter 2024, our pipeline indicated that just under 600,000 units were expected to be delivered in 2024. Though it is too early to see the immediate effects, the interest rate cut already delivered by the Fed, and those that will occur in the immediate future, will be reflected on the supply side as we move into 2025. Robust supply has caused rent cuts in many metros. As a result, 68% of the top 50 markets saw their rent forecasts downgraded in 2024, while only 18% of markets saw their forecasts upgraded. For 2025, 30% of the markets will see upgraded rent forecasts, while 42% will see downgraded forecasts. For 28% of the top markets, the 2025 forecast did not change. Due to changes in the business and economic environment, our updated forecast shows that 36% of the top 50 markets will experience annual rent c...

Texas Leads the Nation for Apartment Supply in 3rd Quarter

2025-01-22T03:13:47-06:00

Of the more than 160,000 apartments delivered across the U.S. in 2024’s 3rd quarter, roughly 15% completed in Texas markets. Austin was the nation’s apartment supply leader, with over 9,800 units wrapping up in the July to September time frame, according to data from RealPage Market Analytics. Dallas delivered the second highest total deliveries, with about 8,500 units completing in the quarter. Houston supply was a bit more muted – comparatively – at 5,750 units, but that was still one of the top deliveries nationwide. Three other South region markets made the top 10, including Atlanta, Charlotte and Raliegh/Durham. That brought total deliveries in the South to over 40,900 units in 3rd quarter. That’s nearly three times more than the totals in the West (14,300 units) and Northeast (11,185 units) regions. No Midwest markets made the top 10 list. In fact, even the Midwest leader – Minneapolis – added moderate supply of a little over 2,000 apartments in 3rd quarter.

Strong Apartment Demand Persists in 3rd Quarter as Supply Hits 50-Year High

2026-03-04T06:52:57-06:00

Apartment demand again looked quite remarkable in 2024’s 3rd quarter, even as a record number of deliveries hit the market. In turn, rent growth remained quite muted nationwide, as has been the case for several months. The U.S. apartment market absorbed 192,649 market rate apartment units in the July to September time frame. Concurrently, the U.S. delivered 162,595 apartment units. On an annual basis, supply reached 557,842 units, a rate unseen since 1974. While robust demand still fell below concurrent rates of new supply, the delta between the two was at the lowest point in two years. As of 3rd quarter 2024, the difference in annual supply and annual demand (488,773 units) registered just above 69,000 units. @include('site.elements.media.image', ['fileId' => 27180, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Nationwide, occupancy in market-rate apartments stood at 94.4% in 3rd quarter, a rate that was down a mere 10 basis points (bps) from the year-ago figure. Monthly rent in market-rate apartments averaged $1,838 as of September 2024. @include('site.elements.media.image', ['fileId' => 27181, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '1233']]) Midwest Markets Continue to Post Rent Growth Above National Norm Most major apartment markets in the Midwest continued to post rent growth above the U.S. average in 3rd quarter. Congruently, Midwest markets have generally delivered more limited supply recently. The Midwest markets that have delivered the most new supply lately – Madison and Sioux Falls – have unsurprisingly seen rent growth slow considerably from one year ago. Kansas City led the nation in annual apartment rent growth for major markets in the year-ending September 2024. Other Midwest markets, including Detroit, Milwaukee, Cleveland, Chicago, Columbus, Indianapolis and Cincinnati also ranked within the top 10 large markets nationally for annual rent growth. @include('site.elements.media.image', ['fi...

RealPage Economy Express Episode 36

2025-01-22T03:13:47-06:00

Episode 36: Home prices continue to rise, the U.S. keeps adding jobs and the Fed is likely to cut rates again by the end of the year. Home prices continue to rise, hitting another all-time high in July, according to the S&P CoreLogic Case-Shiller Index. Prices rose 5% year-over-year as of July, which was slower than June’s 5.5%. The National Association of Realtors pending home sales report for August showed a 0.6% month-over-month increase. Still, year-over-year, pending home sales were down 3%. The third estimate of GDP for 2nd quarter showed 3% annualized growth, marking an acceleration from the 1.6% from 1st quarter. This growth was inspired by consumer spending, private inventory investment and federal government spending. The Personal Consumption Expenditures Price Index – a measure of prices paid for goods and services – increased by 0.1% in August, with year-over-year inflation at 2.2%. The U.S. job market swelled by 254,000 jobs in September, driven by gains in food services, healthcare and construction. Federal Reserve Chair Jerome Powell indicated further rate cuts were likely this year, though in smaller doses. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

U.S. Labor Market Widely Surpasses Expectations in September

2026-03-04T06:52:57-06:00

U.S. employers picked up the pace of hiring in September, while the unemployment rate dropped for a second straight month. Hiring among U.S. employers was much stronger than expected and upward job revisions were made for July and August. The surge in hiring came amid the Federal Reserve’s interest rate cut of half a percentage point in September, the first rate cut in four years. @include('site.elements.media.image', ['fileId' => 27129, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Employers added roughly 254,000 workers to payrolls in September 2024, according to a survey of businesses by the Bureau of Labor Statistics. Those additions came in higher than the 159,000 jobs gained in August (which was revised up) and were well above what economists were forecasting (+140,000 jobs to +150,000 jobs). The U.S. economy has now added jobs for 45 consecutive months, the fifth-longest period of job base expansion on record dating back to 1939. Of note, the job counts for July and August were revised up. Upward revisions to July 2024 data showed 55,000 more jobs were added than previously reported, up to 144,000 positions. The August 2024 job growth number was revised up by 17,000 jobs to a total of 159,000 positions. With these revisions, employment gains in July and August combined were 72,000 jobs higher than previously reported. @include('site.elements.media.image', ['fileId' => 27130, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Job gains in September were higher than the monthly average of around 203,000 jobs added over the previous 12 months and came in well above pre-pandemic norms. From 2015 to 2019, the U.S. economy added an average of roughly 190,000 jobs each month. On an annual basis, the nation gained roughly 2.44 million jobs as of September 2024. That was second-weakest annual gain since April 2021 but registered slightly above the pre-pandemic average of around 2.4 million jobs added annually fr...

Nation-Leading Job Growth Expected in These Markets

2025-01-22T03:13:47-06:00

Among the markets set to see the nation’s most significant job growth in the coming year, West and South region markets dominate the list. Provo is slated to see the most job growth nationwide in the year-ending 3rd quarter 2025, with a 2% increase in its job base, according to RealPage Market Analytics. Among the South region markets on the job growth leaders list, most are in Florida. Job growth is forecasted to hit 1.9% in Myrtle Beach in the coming year, while Cape Coral should see 1.7% growth, and Orlando and Naples are likely to grow by 1.6%. The market on this list with the biggest job gain numbers slated for the coming year is Phoenix, with 39,257 new jobs slated to increase the existing job base by 1.6%. Of note, all these markets are forecasted to see job growth nearly double the national average of 0.9%.

U.S. Demographics Support Continued Housing Demand

2026-03-04T06:52:57-06:00

Demographics of U.S. apartment renters demonstrate continued support for housing demand, based on several layers of data analyzed by RealPage. First, the total amount of people in the U.S. per age is tracked by the U.S. Census Bureau. From there, it’s helpful to put the U.S. population into context of generations. Millennials were born between 1981 and 1996, according to Pew Research Center. Also according to Pew, the Silent Generation was born between 1928 and 1945, followed by Baby Boomers, born between 1946 and 1964. Generation X was born between 1964 and 1980, followed by Millennials. Generation Z was born between 1997 and 2012, followed by Generation Alpha, which was born from 2013 and on. @include('site.elements.media.image', ['fileId' => 26925, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Baby Boomers peaked at a total population of about 78 million, or 13.5 million more than Gen X. Conversely, Millennials peaked at 73 million, or about 5 million more than Gen Z. The median age of apartment renters in the U.S. is 32, according to RealPage. The median age for first-time home buyers in the U.S. is 35, according to National Association of Realtors. While Gen Alpha might look comparatively smaller, keep in mind that immigration usually happens later in life. The population of Gen Alpha will likely expand more than the birth rate would suggest as that cohort ages into adulthood.

Virginia Beach Outperforms Most Large Apartment Markets

2026-03-04T06:52:57-06:00

Apartment market performance in Virginia Beach-Norfolk-Newport News ranks among the top in the nation, caused by a period of manageable apartment supply volumes. Virginia Beach, also known as Hampton Roads and Coastal Virginia, is the 42nd-most populated apartment market in the U.S. with a population of nearly 1.8 million residents and a workforce of roughly 830,000. Virginia Beach is located on the southeastern coast of Virginia along the Atlantic Ocean at the mouth of Chesapeake Bay and borders the Richmond market to the west. In addition to southeast Virginia, the market also covers a small portion of northeastern North Carolina and the Tidewater Region. @include('site.elements.media.image', ['fileId' => 26724, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Deliveries in Virginia Beach have remained moderate recently, as a total of 2,328 units came online during the year-ending 2nd quarter 2024, growing inventory a modest 1.5%, according to data from RealPage Market Analytics. Those additions took the market’s existing stock to nearly 146,000 units. While Virginia Beach has the seventh smallest unit count among the nation’s 50 largest markets, the past year’s inventory growth was the 15th smallest expansion rate and registered well below the U.S. average of 2.7%. During the past year, Portsmouth/Suffolk and Southern Norfolk received more than half of Virginia Beach’s new supply. Demand in the Virginia Beach-Norfolk-Newport News apartment market has been rebounding since mid-2023. In the year-ending 2nd quarter 2024, the market absorbed 1,636 units – a bit behind historical performance but a significant improvement from the more than 2,100 annual net move-outs recorded a year earlier. @include('site.elements.media.image', ['fileId' => 26725, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Five of Virginia Beach’s nine submarkets posted positive annual absorption in 2nd quarter, led by Portsmouth/Suffolk wi...

Home Prices Still Rising, But Pace Is Decelerating

2025-01-22T03:13:47-06:00

U.S. home price increases continued to slow in July, but prices remain at all-time highs. Overall, U.S. home prices were up 0.1% from June to July, according to the seasonally unadjusted S&P CoreLogic Case-Shiller U.S. National Home Price Index, which measures average home prices across the nation. On an annual basis, home prices were up 5% as of July 2024, down from an annual gain of 5.5% in the previous month and well below the historic peaks of around 20% from June 2021 through June 2022. Looking at more granular results, the S&P CoreLogic Case-Shiller 20-City Composite Index, which tracks prices in the 20 largest metros, was essentially unchanged month-over-month but was up 5.9% year-over-year. As of July, 12 of the 20 cities in the index reported month-over-month price gains, with the largest monthly increases in Cleveland (1.1%) and Las Vegas (0.9%). On an annual basis, all 20 metro areas recorded higher prices, with the biggest hikes in New York (8.8%) and Las Vegas (8.2%). Portland posted the smallest year-over-year gain of 0.8%.

Multifamily Completions Reach 50-Year High

2026-03-04T06:52:57-06:00

More apartments have been completed in the last year than at any point in the last 50. Annualized multifamily completions totaled 740,000 units for the first time since April 1974. That was a 36.5% increase from July’s seasonally adjusted total of 542,000 units and 79.2% above last August's total, according to the latest report from the U.S. Census Bureau and the Department of Housing and Urban Development. Multifamily starts fell more than 6% for the month and year to 333,000 units, while units under construction also were down from July and last August at 850,000 units. Annualized multifamily permitting jumped 8.4% from July to 451,000 units, but that was down almost 17% from last year. Delays due to permitting backlogs, financing issues and labor and material costs have kept multifamily construction elevated, but the peaks for permits and starts are definitely in the rearview. @include('site.elements.media.image', ['fileId' => 26850, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Meanwhile, single-family starts were up 15.8% from last month and 5.2% for the year to 992,000 units, reversing the recent downward trend. Single-family starts are expected to increase further throughout the remainder of 2024 as interest and mortgage rates decline. The annualized rate for single-family permitting also increased slightly for the month (2.8%) but was virtually unchanged from last August at 967,000 units. Single-family completions were down 5.6% for the month but up 8.4% for the year to 1.029 million units. The number of single-family units under construction declined a slight 0.3% from July to 642,000 units and were down 5.2% from one year ago. Single-family units authorized, but not started totaled 148,000 units, up 2.8% for the month and 5.7% for the year. Together with the small two-to-four unit figures, total residential permitting increased 4.9% from last month but were down 6.5% for the year to 1.475 million units. With August’s in...

Job Revisions Indicate Softer Economy as Metro Job Gains Slow

2026-03-04T06:52:57-06:00

The U.S. economy did not add nearly as many jobs as originally reported over recent months, indicating that the economy might be softer than previously thought. The Bureau of Labor Statistics revised its national seasonally adjusted employment figures downward, indicating that employment levels were lower than originally estimated. Moderate revisions to metro-level unadjusted employment data also showed the pace of employment growth slowing. While the New York-White Plains metro division once again led the nation in employment gains, its annual total through August of 139,000 new jobs was about 20,000 fewer positions than July’s 12-month total gain. Nine of July’s top 10 job gain markets returned to August’s list with the first eight remaining in order, but the sum of jobs gained for the top 10 was down -2.3% from last month. @include('site.elements.media.image', ['fileId' => 26744, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '613']]) Houston returned at #2 with a gain of 80,500 jobs through August, up 13,700 jobs from July’s revised total, but down almost 19,000 jobs from last year’s gain. Los Angeles again followed Houston at #3, gaining 78,100 jobs for the year, close to July’s figure but a change of +107,400 jobs after last August’s job losses. Philadelphia remained at #4 with a 60,700-job gain, down, 6,800 jobs from last month, while Phoenix (at #5) gained 54,600 jobs in the year-ending August, down 4,400 jobs from July. Tied at #6, Atlanta and Las Vegas gained 41,100 jobs for the year each. Atlanta’s total was down 5,600 jobs from July while Las Vegas was down only 200 jobs. Dallas returned to the #8 spot with 37,300 jobs gained for the year, half of its year-ago total but up 2,300 jobs from July’s downwardly revised total. St. Louis moved up onto the top job gain market list at #9 with 36,600 jobs gained, up 2,700 jobs from last month and 17,500 more jobs than last August. Miami moved down one spot to #10, gaining 35,800 jobs for th...

West Region Apartment Occupancy Forecasted to Increase

2025-12-04T08:12:24-06:00

The base case RealPage outlook suggests that apartment occupancy in the West region has bottomed out and is likely to increase over the next couple years. West region apartment occupancy hit a decade low at 94.9% in early 2024. That was the first time since 2013 that West region apartment occupancy hit below the 95% mark. Moving forward, RealPage forecasts a return to consistent occupancy ahead of that essentially full mark. Some headwinds will continue for Class A properties, especially in higher supply markets and submarkets across the West. But for the region overall, look for occupancy to increase by about 50 to 100 basis points between now and 2026.

Salinas Leads Nation in Apartment Occupancy

2025-01-22T03:13:47-06:00

Salinas, CA posted the tightest occupancy in the nation among the 150 largest apartment markets. Salinas’s August reading of 97.5% registered 290 basis points (bps) higher than the West region average and 340 bps above the U.S. norm, according to data from RealPage Market Analytics. In fact, Salinas has consistently registered high occupancy over the past decade, averaging 97.6% since 2014. By comparison, both the West region (95.7%) and the U.S. (95.3%) saw occupancy rates average closer to the effectively full mark over the past 10 years. Located about an hour south of San Jose, the small Salinas market has about 25,000 existing units. It is the seat of government for Monterey County and serves as an important business, governmental and transportation hub for the region. With its proximity to the ocean and temperate climate, Salinas is also a rich and diverse agricultural area with a thriving tourist industry.

Midwest Markets Report Notably Tight Apartment Occupancy

2026-03-04T06:52:57-06:00

Most major apartment markets across the Midwest are logging occupancy ahead of national norms. Among the nation’s 50 largest apartment markets, Milwaukee was a top performer in August with an occupancy rate of 95.8%. In fact, only three other major markets across the U.S. had a stronger showing as of August. New York, Newark and Anaheim – all markets where occupancy generally registers above average – posted rates between 95.9% and 96.9% in August. Most of the rest of the major Midwest apartment markets saw occupancy rates tightly clustered between 94% and 95%, according to data from RealPage Market Analytics. @include('site.elements.media.image', ['fileId' => 26555, 'attributes' => ['border' => '0', 'width' => '1455', 'height' => '903']]) The only Midwest markets reporting August occupancy behind the U.S. average of 94.1% were St. Louis and Indianapolis, where rates were just shy of that mark at 93.7% and 93.6%, respectively. Detroit was the only Midwest market where occupancy increased over the past year. Occupancy climbed 50 basis points (bps) between August 2023 and August 2024, marking one of the highest upticks nationwide. Detroit was one of only five major apartment markets across the U.S. with occupancy growth of 50 bps or more in the past year. Three of those were in the West (Las Vegas, Riverside and Sacramento), while one was in the South (Richmond). The rest of the major Midwest markets suffered occupancy decline in the past year, with the deepest declines happening in Cincinnati, Milwaukee and St. Louis.

Apartment Supply Set to Triple in Desert/Mountains Region in 2025

2025-12-04T08:06:08-06:00

The Desert/Mountains region is still a favored spot for apartment investors, and, increasingly, developers too as supply here is set to triple pre-pandemic tallies. In the year-ending 2nd quarter, roughly 60,000 new apartments were delivered in the Desert/Mountains region, including nearly 20,000 units from Phoenix alone. That was well ahead of the standard supply volumes this region saw in the years leading up to the pandemic, when roughly 20,000 to 30,000 units were competed annually. New supply scheduled to deliver in the year-ending 2nd quarter 2025 is even higher, with roughly 85,000 units slated to come online in the Desert/Mountains region. Even though demand has been sizable, it hasn’t kept pace with historically high supply, and that should be the case in the coming year as well.

Student Housing Pre-Lease Season Ends Below Year-Ago Record

2026-03-04T06:52:57-06:00

U.S. student housing pre-leasing momentum jumped in August, wrapping up the Fall 2024 pre-lease season with a last-minute push. As of August, roughly 92.8% of beds at the core 175 universities tracked by RealPage were leased for the Fall 2024 semester. While momentum picked up in the final month of the pre-lease season, the most recent showing was notably behind the August pre-lease rates from Fall 2023 (94.4%) and Fall 2022 (95.6%). Still, August pre-lease rates remain markedly ahead of pre-COVID norms. @include('site.elements.media.image', ['fileId' => 26347, 'attributes' => ['border' => '0']]) Typically, momentum slows in August as the leasing season wraps up, when there are fewer beds available to lease, but the most recent showing was a significant improvement over July’s pace as well as typical August rates. A notable 4.4% of student housing beds were leased between July and August for the Fall 2024 leasing season. In comparison, the July-to-August jump in previous hears hovered below 4%. Occupancy rates were tightly clustered across distances from campus. Properties within a half mile to one mile of campus reported the tightest pre-lease occupancy as of August at 92.9%. Properties furthest from campus were 92.8% occupied, matching the RealPage 175 average. Those within a half mile of campus saw the lowest (but still historically strong) pre-lease occupancy of 92.7% as of August. @include('site.elements.media.image', ['fileId' => 26406, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '671']]) Across the RealPage 175, annual effective rent growth softened to 3.6% in August, which was the lowest rate seen so far this pre-lease season. Properties more than one mile from campus continued to report the strongest rent growth at 5.6% as of August, followed by slightly softer readings at properties closer to campus. As of August, 22 schools with sufficient sample within the RealPage 175 reported essentially full occupancy. Among these schools w...

RealPage Economy Express Episode 35

2025-01-22T03:13:47-06:00

Episode 35: Will a softened labor market affect the Fed’s plan for rate cuts? Construction spending decreased 0.3% in July but increased by 6.7% year-over-year. Job openings in July remained unchanged at 7.7 million, down by 1.1 million from last year. Separations, including quits and layoffs, rose slightly to 5.4 million. Nonfarm payroll employment increased by 142,000 in August. The unemployment rate was at 4.2%, slightly higher than the 3.8% from a year ago. Average hourly earnings increased by 0.4% in August, with an annual growth rate of 3.8%. Revisions for June and July job gains showed a significant downward adjustment of 86,000 jobs combined, signaling the labor market may have been weaker than initially thought. Unemployment claims for early September rose slightly to 230,000, with a four-week moving average at 230,750. The Consumer Price Index increased by 0.2% in August, contributing to a year-over-year rise of 2.5%. The Federal Reserve is expected to take a measured approach and avoid a large rate cut at its upcoming September meeting. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

Ranking Rent-to-Income Ratios Across Texas’s Largest Apartment Markets

2025-01-22T03:13:47-06:00

Fort Worth claims the Lone Star State’s most expensive apartments – at least by one metric. Rent-to-income ratios vary across Texas, but generally rank below the national norm, which is common for non-coastal markets in the Sun Belt. Nationwide, rent-to-income ratios hovered around 22.5% as of August on a trailing 12-month basis, according to data from RealPage Market Analytics. Among the largest apartment markets in Texas, only Fort Worth reported an average rent-to-income ratio above the national norm – and it was less than 100 basis points (bps) higher at that. Neighboring Dallas posted rent-to-income ratios below Cowtown and essentially in line with the national norm, despite rents in Dallas running higher than in Fort Worth. Meanwhile, the border market of McAllen/Brownsville posted the state’s lowest rent-to-income ratio at about 15%. RealPage’s rent-to-income ratio represents signed new leases in market-rate apartments, calculated on a trailing 12-month basis to eliminate seasonality.

U.S. Labor Market Strengthens but Remains Somewhat Soft

2026-03-04T06:52:57-06:00

U.S. job growth picked back up in August while the unemployment rate ticked lower. Still, hiring among U.S. employers was weaker than expected and major downward revisions were made for June and July. The softer job market could signal the Fed to cut interest rates on September 18th. @include('site.elements.media.image', ['fileId' => 26195, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Employers added roughly 142,000 workers to payrolls in August 2024, according to a survey of businesses by the Bureau of Labor Statistics. Those additions came in higher than the 89,000 jobs gained in July (which was revised down) and were slightly below what economists were forecasting (160,000 to 165,000 jobs). Still, the U.S. economy has now added jobs for 44 consecutive months, the fifth-longest period of job base expansion on record dating back to 1939. Of note: The job counts for June and July were revised down. Downward revisions to June 2024 data showed 61,000 fewer jobs were added than previously reported, down to 118,000 positions. The July 2024 job growth number was revised down by 25,000 jobs to a total of 89,000 positions. With these revisions, employment gains in June and July combined were 86,000 jobs lower than previously reported. @include('site.elements.media.image', ['fileId' => 26194, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Job gains in August were considerably lower than the monthly average of around 202,000 jobs added over the previous 12 months and came in below pre-pandemic norms. From 2015 to 2019, the U.S. economy added an average of roughly 190,000 jobs each month. On an annual basis, the nation gained roughly 2.36 million jobs as of August 2024. That was the weakest annual gain in over three years and registered slightly under the pre-pandemic average of around 2.4 million jobs added annually from 2015 to 2019. The U.S. economy has recovered all the net jobs lost during the COVID-19 pandem...

Unemployment Rates Vary Widely Among Major Markets

2025-01-22T03:13:47-06:00

Unemployment rates among the nation’s 50 largest markets varied widely, with a span of 380 basis points (bps) as of July 2024. All but three major markets saw unemployment rates increase over the past year. Although unemployment has risen recently, rates have improved dramatically since reaching a peak during the COVID-19 pandemic of 14.4% in April 2020, which was the worst reading since the Great Depression. Most recently, the U.S. average unemployment rate rose 70 basis points year-over-year to 4.5% in July, according to not seasonally adjusted data from the Bureau of Labor Statistics. Among major U.S. markets, the largest surge in unemployment was in Detroit, with the rate jumping 240 bps in the past year. On the other hand, the unemployment rate was unchanged year-over-year in Austin, Milwaukee and San Antonio. Nashville recorded the lowest unemployment rate in July at 2.9%. Also recording unemployment rates below 3.5% were Miami (3.1%), Baltimore and Richmond (both at 3.4%). On the flip side, Las Vegas posted the highest unemployment rate, at 6.7% in July. Los Angeles and Detroit were also among the bottom performers, with unemployment at 6.5% and 6.4%, respectively.

U.S. Apartment Market Sees Negligible Change in August

2026-03-04T06:52:57-06:00

Stability continued to be the key storyline in the U.S. apartment market in August. U.S. apartment occupancy remained stable at 94.1% in August, marking the 10th consecutive month of occupancy straying no more than 10 bps in either direction. In fact, the difference between July (94.16%) and August (94.13%) looks to be incorrect when viewing the data on a chart because the 0-basis point (bps) change was rounded up from -0.03. This proves the point that the market is so incredibly stable, it takes a rounding adjustment to notice the difference between monthly performances. Mild downward shifts at the end of 2023 kept August 2024 occupancy 40 bps below the August 2023 figure, according to data from RealPage Market Analytics. @include('site.elements.media.image', ['fileId' => 26142, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '1141']]) Rent change also remained stable for the month of August, keeping year-over-year growth modest at just 0.4%. This was well behind the nation’s decade average. In fact, annual rent growth has remained very mild – at no more than 0.4% – for the past 13 consecutive months. The Midwest and Northeast remained the nation’s best rent growth performers, with prices growing 2.9% and 2.7%, respectively, in the year-ending August. Among the nation’s 50 largest apartment markets, leading the charge for rent growth in the past year were Milwaukee, Washington, DC and Kansas City, where price increases were between 3.4% and 3.6%. @include('site.elements.media.image', ['fileId' => 26143, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '648']]) On the other hand, Austin continued to drag behind the rest of the nation in August, with a deep rent cut of more than 8% in the past year. This was nearly double the rent cuts seen across other major markets nationwide. In fact, most of the markets losing the most pricing traction in August were located in the South region of the country, with the exception of Phoeni...

Some of the Nation’s Tightest Markets are in the Northeast

2025-12-04T08:06:33-06:00

Largely due to minimum supply volumes, apartment occupancy remains tight across the Northeast. In fact, a total of 14 Northeast markets ranked among the nation’s top 25 for occupancy in July. While most of these are smaller markets, which tend to hold onto tighter occupancy showings than their larger counterparts, some of the nation’s largest apartment markets are also included in this list. New York occupancy was at 97% as of July, ranking the market #4 nationwide. Meanwhile, Newark occupancy was not far behind at 96.2%, ranking #16 nationally. Looking ahead, new construction activity continues to be a big story across the country, with new units scheduled in the coming 12 months expected to double the already hefty volumes delivered over the last year. While this will soften occupancy across the U.S., the performance in Northeast markets is expected to remain a strong one in the near term.

Apartment Supply About to Set New Record in Long Island

2025-01-22T03:13:47-06:00

The small New York market of Nassau County-Suffolk County – better known as Long Island – will garner its largest-ever block of new apartment supply in 3rd quarter 2024. The market, which has about 82,200 existing apartment units today, is set to receive almost 2,100 units in the year-ending 3rd quarter, marking the highest annual supply load on record for Long Island, according to RealPage Market Analytics. That rate will grow total inventory 2.6%. Since 2014, Long Island has grown total apartment inventory about 12%. Apartment supply here generally runs low, averaging 1.1% annual inventory growth over the last decade. Since late 2023, however, construction volumes have trended up to now stand at their highest level on record in the RealPage data set, which goes back to 2002 for this market. Delivery volumes are expected to remain elevated in Nassau County-Suffolk County through at least mid-2025, though construction delays could alter those figures somewhat. Beginning in late 2025, annual delivery volumes are expected to taper back toward historical norms.

Pedestrian Properties Still Command Premium in Student Housing

2026-03-04T06:52:57-06:00

The global pandemic caused several new performance patterns in student housing. Among them was that properties farthest from campus outperformed their more proximate counterparts for longer throughout the recent rent growth boom. That ultra-high rent growth began to moderate earlier this leasing season. While still historically strong, rent change is softening back toward more typical levels. Still, when examining how that growth altered performance patterns across distances, the impact appears minimal. That is to say, properties closest to campus still command approximately the same price premium as they have over the last several years. And properties farthest from campus still command the relative bargain amongst distances. @include('site.elements.media.image', ['fileId' => 25915, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Across distances, rent growth at pedestrian properties – meaning, properties within a half mile of campus – began to moderate the earliest, dipping below 8% annual effective rent growth in October 2023. Annual rent growth at properties within a half mile to one mile of campus dipped below 8% a month later in November. Properties more than one mile from campus, meanwhile, continued to record strengthening rent growth during that time, peaking at 9.3% annual effective rent change in November and then sipping below 8% several months later in March. As of July, rent growth at properties more than one mile from campus clocked in at 5.4%, compared to 4.8% at properties within a half mile to one mile of campus and 3.4% at pedestrian properties. Across all distances, annual effective rent growth among the core 175 universities tracked by RealPage hit 3.9% in July. On a dollar basis, however, performance patterns across distances look similar today as they did before the pandemic. @include('site.elements.media.image', ['fileId' => 25914, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) As o...

Major Themes in 2nd Quarter Earnings Calls from Multifamily REITs

2025-01-22T03:13:47-06:00

A review of 2nd quarter earnings calls for the larger multifamily REITs indicates that many of the positive factors realized during the first quarter of the year carried into the all-important peak leasing season across most national apartment markets. Strong Apartment Demand Continued strength in apartment demand despite ongoing macroeconomic uncertainty remained a key driver for 2nd quarter performance. Employment growth, wage growth, in-migration and housing affordability factors were frequently cited as significant demand drivers across varying regional and product class portfolios. AvalonBay Communities, Inc. (AVB) reported “operating momentum through the first half of the year has been driven by better-than-expected demand.” AVB also stated that sectors of the economy that encompass their core customer base are at effectively full employment with stable job and income prospects. Camden Property Trust notes that across its primarily Sun Belt portfolio, “the main driver of apartment demand is household formation driven by population and employment growth, apartment affordability and positive demographic trends.” Meanwhile, Essex Property Trust, Inc. is seeing, “a gradual improvement in domestic migration patterns on the West Coast,” citing positive net domestic migration in Northern California for the first time since before the COVID-19 pandemic. Housing affordability, particularly along the coastal regions, remained a strong apartment demand driver in 2nd quarter, as interest rates remained higher. Regarding its West Coast market strategy, Essex points out, “it is 2.8 times more expensive to own than to rent in our markets today, compared to 1.7 times back in 2019 when interest rates were near the historical low. Even if mortgage rates were to revert back to the 2019 level, homeownership in our markets will still remain significantly less affordable than renting.” Occupancy Remains Solid REIT operational oc...

RealPage Economy Express Episode 34

2025-01-22T03:13:47-06:00

Episode 34: Consumers are feeling more confident, and an interest rate cut may be on the horizon. According to recent revisions from the Bureau of Labor Statistics, the U.S. economy created 818,000 fewer jobs than initially reported in the 12-month period ending in March 2024. This 30% downward adjustment was the most significant since 2009. Even with fewer jobs than originally stated, demand for apartments was solid in the first half of 2024. Weekly unemployment claims decreased slightly, with 231,000 new claims filed in the latest report. However, the four-week moving average dipped to 231,500 claims, indicating a relatively stable job market. New residential construction permits and starts were both down for the year-ending July, signaling a slowdown in new housing. However, existing-home sales rose 1.3% in July, capping off a four-month decline. Consumer confidence increased in August, with the index rising to 103.3 from 101.9 in July. With inflation cooling, the Fed is hinting at a possible interest rate cut soon. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

Multifamily Starts Increase in July as Permitting Slows

2026-03-04T06:52:57-06:00

Multifamily starts increased suddenly and sharply in July, while multifamily permitting declined. Annualized multifamily starts jumped to 363,000 units in July, up 11.7% from June’s seasonally adjusted annual rate (SAAR), according to the latest report from the U.S. Census Bureau and the Department of Housing and Urban Development. However, starts were still down 21.8% from the same time last year. Multifamily permitting decreased 12.4% for the month and 18.2% for the year to 408,000 units. Despite the recent jump, multifamily starts (and permits) continued to slow from peak levels seen in 2022. Multifamily permitting appears to be leveling off close to the average of about 420,000 units from 2013 to 2020, while starts averaged 360,000 units over that period. @include('site.elements.media.image', ['fileId' => 25998, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) The annualized rate for multifamily completions continued to exceed both permits and starts with the SAAR for July at 473,000 units, a drop of 24.4% from June but up 49.2% from last July. Additionally, the number of multifamily units currently under construction slipped 1.5% for the month to 870,000 units, 13.3% less than last year. The number of multifamily units authorized, but not started (which excludes cancelled, abandoned, expired and revoked permits was essentially unchanged from last month and July of last year. Meanwhile, single-family starts were down 14.1% from last month and 14.8% for the year to their lowest level since March 2023 at 851,000 units. The annualized rate for single-family permitting also declined slightly for the month (-0.1%) and was 1.6% lower than last July at 938,000 units. Single-family completions were up 0.5% for the month and up even more (3.6%) for the year to 1.054 million units. The number of single-family units under construction declined 2.1% from June to 653,000 units and were down 4.1% from one year ago. Single-family units authorized...

Labor Force Participation Still Hasn’t Recovered to Pre-Pandemic Norm

2025-01-22T03:13:47-06:00

The U.S. workforce participation rate has yet to return to its pre-COVID pace from February 2020. As of July 2024, roughly 62.7% of civilians participated in the labor force, according to seasonally adjusted data from the U.S. Bureau of Labor Statistics. That rate compares to a stronger showing of 63.3% from February 2020. Broken out by sex, the labor force participation rate for men clocked in at 70.5% in July 2024, which was 90 basis points (bps) below the February 2020 level. Meanwhile, the labor force participation rate for women ran 40 bps below the pre-pandemic pace to stand at 58.9% in July 2024.

Florida’s Most Expensive Apartment Markets, Ranked by Rent-to-Income

2025-01-22T03:13:47-06:00

Although many major apartment markets in Florida have average effective asking rents below the national norm, most have subsequent rent-to-income ratios above the U.S. average. In other words, when looking at rent-to-income ratios across the Sunshine State, most markets look more expensive than the nation at large. Palm Bay, located along the Atlantic coastline, just about an hour southeast of Orlando, claimed the state’s highest rent to income ratio as of July at over 26%. Nationwide, rent-to-income ratios hovered around 22.5% as of July on a trailing 12-month basis, according to data from RealPage Market Analytics. Meanwhile, only one of Florida’s largest apartment markets boasted a rent-to-income ratio below the national norm: Lakeland at 22% as of July. Deltona, Tampa and Miami also posted rent-to-income ratios within 100 basis points of the national norm. RealPage’s rent-to-income ratio represents signed new leases in market-rate apartments, calculated on a trailing 12-month basis to eliminate seasonality.

New York Job Gains Jump Higher

2026-03-04T06:52:57-06:00

The New York-White Plains metro division’s already strong annual employment gains enjoyed a sharp bump in July, bolstered by improvement in the Professional and Business Services and Trade, Transportation, and Utilities industries, but primarily benefiting from strong gains in the Education and Health Services industry. According to data released by the Bureau of Labor Statistics, New York’s annual job gain for the year-ending July totaled 156,600 new workers, 60,400 more jobs than the upwardly revised 96,200 jobs through June. Six more top 10 job gain markets saw improvements in annual employment gains from last month. Nine of June’s top 10 job creation markets returned in July with a few changing places. New York’s strong July gains kept it in the #1 spot with the aforementioned 156,600 jobs gained for the year-ending July. Houston returned at #2 with a gain of 74,500 jobs through July, down 1,600 jobs from June’s total. Los Angeles continues to see an improved economy with 73,900 new jobs, up 26,100 jobs from June, moving it up one spot to #3. Philadelphia fell back one spot to #4 with 66,200 jobs gained through July, an improvement of 8,900 jobs from last month’s annual gain. Phoenix remained in the #5 spot with 61,600 jobs gained, 8,900 jobs more than both last month and last year. Atlanta jumped from #9 in June to #6 in July with an annual gain of 51,200 jobs, 13,500 jobs more than in June. Las Vegas also improved from June with a total of 41,500 new jobs through July, a bump of only 3,100 jobs, but enough to move Las Vegas up one spot to #7. @include('site.elements.media.image', ['fileId' => 25812, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '613']]) The Dallas metro division continues to cool, falling to #8 in July with a gain of 38,900 jobs, 5,100 fewer new jobs than in June and 42,100 less than July 2023. Right behind Dallas, Miami took the #9 spot with 38,300 new jobs, almost the same as in June and only 3,000 less than last Ju...

Southeast Region Apartment Supply Volumes Could be Near a Peak

2025-04-21T16:39:36-05:00

The Southeast region has been a key spot for investors recently, with annual supply volumes more than doubling over the past five years. However, the region could be approaching a peak for apartment completions. Annual deliveries in the Southeast went from around 20,000 units in the years leading up to the pandemic, to around 50,000 units in the year-ending 2nd quarter 2024. Another 50,000 or so units are scheduled to deliver in the Southeast over the next 12 months, but roughly 10% of that will likely experience a delay, as suggested by historical delivery patterns. With interest rates still elevated, fewer projects have been breaking ground. As a result, new construction activity has been declining for the past few quarters and is set to continue its downward trend in the near term.

Defining the 10 Geographic Regions of the U.S. Apartment Market

2025-01-22T03:13:47-06:00

RealPage Market Analytics defines regions of the country according to the following groupings. West Coast Region California Oregon Washington Hawaii Alaska Mountains/Desert Region Arizona New Mexico Nevada Utah Colorado Wyoming Idaho Montana Texas Lower Midwest/Plains North Dakota South Dakota Nebraska Kansas Oklahoma Missouri Upper Midwest Iowa Minnesota Wisconsin Michigan Illinois Indiana Ohio Southeast Kentucky Tennessee Arkansas Louisiana Mississippi Alabama Georgia Florida Carolinas North Carolina South Carolina Mid-Atlantic Pennsylvania New Jersey Delaware Maryland West Virginia Virginia Washington, DC Northeast New York Vermont New Hampshire Maine Massachusetts Connecticut Rhode Island

RealPage Economy Express Episode 33

2025-01-22T03:13:47-06:00

Episode 33: Inflation and construction spending cool off. Construction spending dipped by 0.3% between May and June but is up 6.2% year-over-year, according to the S. Census Bureau. Both private and public sectors saw minor pullbacks in construction spending, pointing to a slight cooling off after a robust growth period. The unemployment rate increased slightly to 4.3% in July, per the Bureau of Labor Statistics. This was a weaker performance than expected. Average hourly earnings rose by 0.2% for the month, contributing to a yearly increase of 3.6%. Weekly unemployment insurance claims decreased to 227,000, down by 7,000 from the previous week. The Consumer Price Index rose by 0.2% in July, driven by higher shelter costs, with a yearly increase of 2.9%. That was the smallest 12-month upturn since March 2021. Mortgage applications surged by 16.8%, mainly due to refinancing activities. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

U.S. Inflation Falls Below 3% for the First Time in Over Three Years

2025-01-22T03:13:47-06:00

The Federal Reserve’s efforts to curb inflation appear to be working, as consumer prices continued to trend down in July. The news could signal an interest rate cut by the Fed in September. The price of goods and services paid by U.S. consumers rose 2.9% in the year-ending July, according to the Consumer Price Index (CPI) for All Urban Consumers measured by the Bureau of Labor Statistics. That was the smallest 12-month upturn since March 2021 – a welcomed sign that inflation is trending in the right direction and heading toward the Fed’s target rate of 2%. Inflation has cooled considerably since reaching a 40-year high of 9.1% in June 2022. For comparison, the inflation rate averaged 1.6% annually in the five years leading up to the COVID-19 pandemic (2015-2019). Core inflation, which strips out volatile costs of food and energy, was up 3.2% year-over-year in July, which was the smallest annual increase since April 2021. The energy index rose 1.1% in the year-ending July, with the price of electricity rising 4.9% over the past year, while gas prices declined 2.2%. The cost of shelter, which is keeping the overall inflation rate elevated, rose 5.1% from a year ago. Still, that was the slowest increase in over two years. However, the shelter index has a well-documented lag effect. Excluding the cost of shelter, consumer prices were up just 1.7% year-over-year in July.

High Supply Meets Strong Job Growth in Small Texas Markets

2026-03-04T06:52:56-06:00

Nearly 147,000 apartment units were underway in Texas at the end of 2nd quarter 2024. And while the Lone Star State’s largest markets may get all the headlines – looking at you, Dallas – plenty of small Texas markets have grown apartment stock significantly or are poised to do so in the near future. After factoring in population growth and job additions, development in these small Texas markets seems like a no-brainer for savvy apartment builders. Here are four small Texas market we’re watching. Sherman-Denison @include('site.elements.media.image', ['fileId' => 25623, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Located just a few miles south of the Oklahoma state border, Sherman-Denison has become a haven for semiconductor plants. The market has grown total employment 2.6% in the year-ending June, and more jobs are still forthcoming. With less than 7,000 existing units in the market, according to data from RealPage Market Analytics, even the addition of a couple hundred units can throw off apartment fundamentals in the near-term. Even though Sherman-Denison’s population grew nearly 9% in the five-year period ending in 2022, according to the latest from the U.S. Census Bureau, gains from these two semiconductor plants had yet to be captured in 2022 data. With nearly 5,000 new jobs promised by Texas Instruments and GlobiTech in 2025, the local economy and population still has plenty of runway to grow. College Station-Bryan @include('site.elements.media.image', ['fileId' => 25622, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) The true supply story in College Station-Bryan is not what’s on the way, but what has delivered over the last few years. This market had no units underway at the end of 2nd quarter 2024. But that comes after a sustained supply wave hit College Station over the last eight years or so, peaking in 2018 and 2019. Conventional housing is tracked separately from student housing, but Texa...

Limited Supply Keeps Apartment Occupancy Tight in Providence

2025-01-22T03:13:47-06:00

Limited new supply in the Providence apartment market has kept occupancy very tight, despite weak demand volumes. Over the past five years, the market added roughly 2,300 new units, expanding existing apartment inventory 1.8%, according to data from RealPage Market Analytics. That expansion pace registered well below the national average of 10.5% during the same period. Most recently, during the year-ending 2nd quarter 2024, a total of 585 units came online in Providence taking the market’s existing unit count to roughly 108,300 units. Those new units grew Providence’s apartment base just 0.5%, one of the lowest annual expansion rates among the nation’s core 150 apartment markets and well below the national average of 2.7%. These limited supply volumes have insulated Providence’s occupancy performance. As of 2nd quarter 2024, Providence was 97% occupied, the fifth-tightest reading nationally and 280 basis points above the U.S. average. Tight occupancy has given apartment operators pricing power. In 2nd quarter, effective asking rents in Providence were up 4% year-over-year. While down from recent highs, that was the 17th-biggest price hike nationally and came in well above the national norm of just 0.2%. Completions in Providence during the coming year are expected to remain around recent levels, keeping occupancy tight and providing operators with continued, though slightly less, pricing power.

Student Housing Pre-Lease Momentum Slows in July 2024

2026-03-04T06:52:56-06:00

U.S. student housing pre-leasing momentum slowed in July, with only one month left in the Fall 2024 pre-lease season. As of July, roughly 88.4% of beds at the core 175 universities tracked by RealPage were leased for the Fall 2024 semester. While it’s normal for momentum to slow in July, the most recent showing was notably behind July pre-lease rates from Fall 2023 (90.5%) and Fall 2022 (91.7%). Even so, July pre-lease rates remain ahead of pre-COVID norms. @include('site.elements.media.image', ['fileId' => 25516, 'attributes' => ['border' => '0']]) After pre-lease momentum chugged along at an average pace of about 6% per month for the past three months, momentum slowed recently, as just 3.9% of student housing beds were leased between June and July. Leasing typically slows down in the summer months when students leave campus, but this was a below-average performance. In comparison, leasing rates between June and July were more impressive in Fall 2023 (4.7%) and Fall 2022 (5.5%). Across distances from campus, properties farthest from campus reported the tightest pre-lease occupancy as of July at 88.8%. Properties within a half mile of campus matched the RealPage 175 average of 88.4%, while properties within a half mile to one mile of campus garnered the lowest (but still historically strong) pre-lease occupancy of 88.1% as of July. @include('site.elements.media.image', ['fileId' => 25507, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '552']]) Across the RealPage 175, annual effective rent growth softened to 3.9% in July, which was the lowest rate seen so far this pre-lease season. Properties more than one mile from campus continued to report the strongest rent growth at 5.4% as of July, followed by slightly softer readings at properties closer to campus.

After Slumping in 2022, University Enrollment Rebounds

2025-01-22T03:13:46-06:00

College enrollment has rebounded slightly after declining in 2022. Among the core 175 universities tracked by RealPage, college enrollment dipped a slight 0.2% in 2022, marking the only declining enrollment on record in the RealPage dataset. Student enrollment is the primary demand driver in student housing. Just a year later, enrollment grew 0.6% in 2023. Still, that growth rate clocks in below average annual enrollment hikes seen before the pandemic. Throughout the last economic cycle, enrollment growth across the RealPage 175 has hovered around 1.1% per year. The low point for enrollment growth occurred in Fall 2019 at 0.4% and remained low in Fall 2020 at 0.6%, depressed by the pandemic. Depressed enrollment growth, while still unwelcomed by student housing developers, might feel more manageable given that developers are completing fewer student housing beds this economic cycle.

Apartment Occupancy and Rent Growth Continue to Stabilize in July

2026-03-04T06:52:56-06:00

The U.S. apartment market continued to stabilize in July. Occupancy in market-rate apartments held steady at 94.2% in July, marking the third straight month of occupancy remaining at that rate. Historically speaking, occupancy tends to level off in July. Effective asking rents grew 0.3% during the month of July. That was less than the typical July pace from the 2010s decade but represented a 10-basis point (bps) increase over the July 2023 figure. Year-to-date in 2024, rents expanded 2.2%, in line with the year-to-date 2023 pace. Recent rent growth pushed the annual change to 0.3% as of July, according to data from RealPage Market Analytics. @include('site.elements.media.image', ['fileId' => 25405, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '1141']]) Concession utilization appears to be levelling off as well. As of July, nearly 14% of units were offering a concession, in line with the June figure. The average discount being offered did increase a bit, to 28 days. As always, however, concessions are a hyper-local phenomenon, so performances varied by market. West Region Occupancy Close to Leveling Off The West region is close to seeing apartment occupancy level off. Occupancy was down just 10 bps year-over-year as of July. The downside is that occupancy as of July (94.6%) was still more than 100 bps below the 10-year norm. That said, occupancy among major markets in the West region was split between the non-coastal markets (Phoenix, Salt Lake, Las Vegas and Denver were all below 94%) and the coastal markets (Orange County, Bay Area and San Diego were all above 95%). South Region Rents Still Seeing Impact The South region continues to see rents impacted by generationally high supply levels, but there are some pretty wide ranges of performance here. A total of 18 of the region's 65 key markets recorded rent cuts both month-over-month and year-over-year in July. Florida markets made up 10 of those 18 markets. Among Texas’ five major marke...

Apartment Demand Improves Notably in Florida

2025-04-21T16:34:49-05:00

Florida apartment demand improved by nearly 700% in the past year. This was a pattern seen across the nation, as every region in the U.S. saw a turnaround in apartment absorption activity from the year-ago performance. Florida saw the nation’s sixth-best regional improvement year-over-year. The state logged demand for 52,216 units in the year-ending 2nd quarter 2024, which was the nation’s 3rd best performance regionally after Texas and the Mountains/Desert region. Florida’s latest annual absorption tally was fueled notably by its 2nd quarter performance and was 673% more than the total the state absorbed in the year-ending 2nd quarter 2023. Additionally, the past year’s demand showing was double the state’s pre-COVID average between 2015 and 2019.

U.S. Job Growth Weakens While Unemployment Rises

2026-03-04T06:52:56-06:00

The U.S. labor market was weaker than expected in July. Hiring among U.S. employers continued to decelerate, and the unemployment rate rose to its highest level in nearly three years as more people entered the labor force. @include('site.elements.media.image', ['fileId' => 25276, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Employers added roughly 114,000 workers to payrolls in July 2024, according to a survey of businesses by the Bureau of Labor Statistics. Those additions came in below the 179,000 jobs gained in June (which was revised down) and were well short of what economists were forecasting (175,000 to 185,000 jobs). The U.S. economy has now added jobs for 43 consecutive months, the fifth-longest period of job base expansion on record dating back to 1939. Of note: The job counts for May and June were revised down. Downward revisions to May 2024 data showed 2,000 fewer jobs were added than previously reported, down to 216,000 positions. The June 2024 job growth number was revised down by 27,000 jobs to a total of 179,000 positions. With these revisions, employment gains in May and June combined were 29,000 jobs lower than previously reported. @include('site.elements.media.image', ['fileId' => 25277, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Job gains in July were considerably lower than the monthly average of around 215,000 jobs added over the previous 12 months and came in below pre-pandemic norms. From 2015 to 2019, the U.S. economy added an average of roughly 190,000 jobs each month. On an annual basis, the nation gained roughly 2.51 million jobs as of July 2024. That was the weakest annual gain in over three years but still registered above the pre-pandemic average of around 2.4 million jobs added annually from 2015 to 2019. The U.S. economy has recovered all the net jobs lost during the COVID-19 pandemic. As of July, the nation had 6.4 million more jobs (+4.2%) compared to the pre-pande...

RealPage Economy Express Episode 32

2025-01-22T03:13:46-06:00

Episode 32: Strength across several economic sectors In the private sector, employment increased by 122,000 jobs in July, with annual pay rising 4.8% year-over-year, according to the ADP National Employment Report. The same report showed that job openings decreased by 941,000 jobs in the past year, signaling cooling labor demand. S. GDP surpassed expectations, growing at an annualized rate of 2.8% in 2nd quarter 2024. That growth was driven by strong consumer spending and increased government spending. The Personal Consumption Expenditures (PCE) price index rose 2.5% year-over-year in June. Excluding food and energy, core PCE prices increased 2.6%. Existing-home sales declined 5.4% in June, while median sales prices reached a record high of $426,900. The Consumer Confidence Index increased slightly to 100.3 in July. However, the Present Situation Index, which measures current business and labor market conditions, saw a slight decline. The Federal Reserve indicates a rate cut might occur as soon as September, if inflation continues to cool. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

Average Student Housing Rents Ranked by State: Fall 2023

2026-03-04T06:52:56-06:00

The most expensive state in the nation for student housing rents is New York, where the average effective rent per bed clocks in just under $2,500 per month. On the opposite end of the spectrum, Wyoming claims the nation’s most affordable student housing rents at less than $550 per bed per month, on average. Across the core 175 universities tracked by RealPage, average effective asking rents per bed in privately owned student housing runs around $1,000 per month as of Fall 2023. That rate varies widely, with two Northeast locales more than doubling that average. New York ($2,487) and Massachusetts ($2,160) claim the nation’s most expensive student housing rents. Rents run above $1,500 per month in Washington, DC, California, New Jersey, Washington state, Connecticut and Illinois. @include('site.elements.media.image', ['fileId' => 25159, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '721']]) Several states have average effective rents per bed that run approximately in line with the national norm of about $1,000 per month. Hawaii, Maryland, Arizona, Minnesota, Montana, Texas, Tennessee, New Hampshire, Georgia, Virginia, Alaska, Wisconsin and Delaware all post average rents per bed within $100 of the national average. Since the last time RealPage ran this analysis using Fall 2021 data, Montana has seen the largest jump in student housing rents. The state average in Montana of $1,053 has jumped nearly 30% in two years – a price increase that aligns with conventional apartment rent growth seen across the state as well. Only four states nationwide posted average student housing rents below the $600 mark as of Fall 2023. West Virginia, Kansas, North Dakota and Wyoming claimed the lowest student housing rents in the nation.

Despite Elevated New Supply, Omaha Apartment Occupancy Remains Strong

2025-01-22T03:13:46-06:00

New apartment completions in Omaha-Council Bluffs were elevated recently, but occupancy remained solid. Each of the past four quarters saw the completion of 500 to 700 new units in the market, pushing deliveries to 2,554 units in the year-ending 2nd quarter 2024, according to data from RealPage Market Analytics. That was well above the five-year annual average delivery load of around 1,800 units. Recent additions took Omaha’s existing inventory to nearly 90,000 units, the 55th largest among the nation’s core 150 apartment markets. On the demand side, Omaha absorbed 772 units in the April to June time frame, the market’s best quarterly demand performance in three years. That took annual absorption to 1,375 units. Although the surge in completions has brought down occupancy from recent highs in 2022, the market has remained strong. Occupancy in Omaha dropped 1.2 points year-over-year, with the 2nd quarter 2024 rate landing at a still-tight reading of 95.5%. In fact, average apartment occupancy in Omaha has remained above 95% for six years. With occupancy above the effectively full mark (95%), operators have retained pricing power. In 2nd quarter 2024, same-store effective asking rents for new leases were up 3.2% year-over-year, which was well above the national average of 0.2%. Completions in Omaha are expected to ease in the next year, with 1,897 units scheduled to complete. While demand is forecasted to continue to trail new supply, occupancy should remain above the effectively full mark.

Multifamily Starts and Permits Increase but Completions Outpace Both

2026-03-04T06:52:56-06:00

Annualized starts and permits for multifamily units unexpectedly increased sharply in June as these volatile housing measurements ran counter to their prevailing trends. However, multifamily completions are still running far ahead of both permits and starts. According to the latest report from the U.S. Census Bureau and the Department of Housing and Urban Development, the seasonally adjusted annual rate (SAAR) for multifamily starts shot up 22% from last month to 360,000 units and the annualized rate for multifamily permits increased 19.2% to 460,000 units. Compared to last June, permits are down 6.5% and starts are down 23.4%. @include('site.elements.media.image', ['fileId' => 25081, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) At the same time, the annualized rate for multifamily completions was almost double the rate for starts at 656,000 units, up 26.2% from May and 40.2% from last June. The spread between starts and completions continues to widen as the surge in multifamily construction of the past few years appears to be fading. Additionally, the number of multifamily units currently under construction dipped 1.7% for the month to 880,000 units, down 11.4% from last year. The number of multifamily units authorized, but not started (which excludes cancelled, abandoned, expired and revoked permits) increased 3.1% from May to 131,000 units, but was unchanged from June of last year. Meanwhile, at 980,000 units, single-family starts were down 2.2% from last month but up 5.4% for the year. May’s rate for starts was upwardly revised to 1.002 million units, leaving June’s pace as the first to drop below one million units since last October. The annualized rate for single-family permitting also declined for the month (-2.3%) and was 1.3% lower than last June at 934,000 units. Single-family completions were up 1.8% for the month and up even more (3.2%) for the year to 1.037 million units. The number of single-family units under constru...

Revisiting Apartment Market Forecast Profiles from 2024

2026-03-04T06:52:56-06:00

At the beginning of 2024, with new supply volumes increasing and job growth performing beyond expectations, our economists picked their favorite apartment markets to watch across the U.S. this year. Six months into the year, let’s check in on how these markets are performing now. Early Favorites to Lead Many of the markets favored to lead in 2024 shared one common theme: limited supply pipelines. But it's more than limited supply that's kept many of these markets ahead of the pack in 2024 - it's also taken decently strong demand as well. As of June 2024, Cleveland (#3), Cincinnati (#4), Columbus (#9) and Chicago (#10) have seen rent growth trend well ahead of the national norm, according to data from RealPage Market Analytics. @include('site.elements.media.image', ['fileId' => 25053, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Surprising Upside Surprising upside implies there's some risk in picking a "dark horse" market so to speak. San Jose & Washington, DC have seen rent growth outpace national norms with Washington, DC ranking #2 in the country. San Jose may be on the cusp of resecuring some job growth due to AI-driven tech improvement after a challenging 2023. Washington, DC meanwhile has seen migration flowing back into the nation's capital which has helped support revenue growth. Potential Demand Challenges Markets with potential demand challenges yield mixed-results as of mid-year. Los Angeles and Portland both have struggled to maintain any traction in 2024 as it appears locally sluggish economic growth is holding the markets back. Portland's annual job loss (-0.8%) ranks second-worst among the nation 50 most populous metro areas. Los Angeles meanwhile has seen very modest growth (0.6%), though acute supply pressure in Downtown LA and Mid-Wilshire in particular has resulted in extremely elevated turnover. LA saw 52% turnover among leases expiring in June 2024, which was the fourth highest in the country. Strong Demand,...

Top 10 Markets for Apartment Demand in 2nd Quarter

2025-01-22T03:13:46-06:00

U.S. apartment demand surged in 2nd quarter, boosted by a handful of outperforming markets. The nation absorbed over 161,700 units in the April to June time frame, which was the best quarterly showing since the pandemic-era demand swell of 2021, according to data from RealPage Market Analytics. While all the nation’s 50 largest apartment markets logged at least some positive demand in the quarter, a handful of markets stood out. For the most part, these are markets that have witnessed the most new apartment deliveries during the latest building cycle. Dallas absorbed over 9,700 units during the April to June time frame, which was more than the annual demand volumes for 38 of the top 50 markets. Not surprisingly, Dallas also led the nation for annual absorption. Two other Texas markets – Austin and Houston – also logged nation-leading demand during 2nd quarter. Phoenix and New York rounded out the top five spots.

Los Angeles Returns to Top Job Gain List

2026-03-04T06:52:56-06:00

The Los Angeles-Long Beach-Glendale metro division jumped onto June’s top 10 job gain markets list for the first time since January 2023. The market’s lingering weakness from last year’s writer’s strike appears to be fading. According to data released by the Bureau of Labor Statistics, half of June’s top 10 job creation markets improved annual gains from May’s 12-month totals, with two improving from last year. Los Angeles and St. Louis both had stronger annual gains than in June 2023. Eight of May’s top 10 job creation markets returned in June with a few changing places. New York remained in the #1 spot with 82,900 jobs gained for the year-ending June, decreasing by 12,400 jobs from May. Houston returned at #2 with a gain of 78,000 jobs through June, down 5,500 jobs from May’s total. Philadelphia jumped three spots to #3, gaining 61,100 jobs for the year, an improvement of 17,600 jobs from last month. As mentioned, Los Angeles leapt to the #4 spot, gaining 60,200 jobs through June, 33,400 more than in May. Phoenix dropped to the #5 spot with 49,000 jobs gained, down 5,600 jobs from May and 24,500 positions less than the year before. Dallas stayed right behind Phoenix at #6 with a gain of 41,800 jobs, 7,200 less than in May. @include('site.elements.media.image', ['fileId' => 24954, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '613']]) Miami took the #7 spot with 38,000 new jobs, up 3,800 for the month but 11,500 less than last June. Las Vegas dropped three spots from May to #8 with an annual gain of 37,800 jobs, slightly less than its total last year but 6,200 fewer jobs than May’s total. Atlanta ranked #9 with 37,000 jobs gained for the year-ending June, up 3,900 for the month but 35,800 jobs less than one year ago. St. Louis was the other newcomer to the top 10 list, gaining 32,900 jobs for the year and adding 2,300 more jobs to the annual total than in May. With the resurgence in Los Angeles, the total number of jobs gained for the ye...

Semiconductor Hot Spot Sherman Sees Apartment Boom

2025-01-22T03:13:46-06:00

The small Texas market of Sherman-Denison has recently taken the notice of many, perhaps due to the boom in semiconductor plants, including facilities from Texas Instruments and GlobiTech that promise thousands of jobs in the area. Apartment developers have noticed too. The small market about 70 miles north of Dallas currently has about 6,800 existing apartment units – with another nearly 2,000 on the way, according to recent data from RealPage Market Analytics. As of 2nd quarter 2024, the 1,848 apartment units underway in Sherman-Denison would grow the market’s total existing inventory an astounding 27%. And that’s on top of the 7.3% inventory growth seen in the last year, thanks to the addition of about 460 new units. Apartment fundamentals in Sherman-Denison, meanwhile, remain comparatively stronger than nearby Dallas and Fort Worth. Effective asking rents here inched up a slight 0.2% in the year-ending June, compared to rent cuts in Dallas (-3%) and Fort Worth (-2%). Demographic tailwinds in Sherman are hard to overstate. Total population grew 2.1% in 2022, according to the U.S. Census Bureau, boosting the market’s five-year growth rate to 8.6%, one of the highest rates in the nation.

Apartment Markets Scheduled to See Deliveries Decrease in the Coming Year

2026-03-04T06:52:56-06:00

New apartment supply has been hitting the U.S. apartment market heavily in the past few years, with some markets scrambling to keep up with the influx. But a handful of major apartment markets are scheduled to see completions taper off in the coming year. The U.S. overall delivered 522,743 units in the year-ending 2nd quarter 2024, according to data from RealPage Market Analytics. At the end of 2nd quarter, there were another almost 630,000 units underway and scheduled to complete in the next four quarters. But while the U.S. overall is expected to see delivery volumes increase in the coming year, a handful of major markets will see their supply totals go a different way. The list of markets expected to see the most notable declines in new completion volumes in the coming year is heavy in the South markets, which have been prime contributors of delivery volumes recently. There are also several markets in the Midwest which haven’t seen nearly as much new supply as some other areas across the U.S. in the most recent building cycle. @include('site.elements.media.image', ['fileId' => 24917, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Houston is expected to see the nation’s steepest decline in apartment deliveries in the near term. Over 25,900 units were delivered here in the past year, ranking the market behind only Dallas for new supply on a national scale. Additionally, this was the biggest volume of completions in a single year in Houston since the 1980s. While supply will continue to be significant, the 17,821 units scheduled to complete in the year-ending 2nd quarter 2025 would be more than 8,000 units fewer than completed in the year-ending 2nd quarter 2024. That represents a 31.2% decline. Minneapolis is the Midwest market scheduled to see the most reduction in new completions in the near term. A little more than 11,000 units were delivered here in the past year, nearly double the volume seen in any other Midwest apartment mark...

RealPage Economy Express Episode 31

2025-01-22T03:13:46-06:00

Episode 31: Broader economic indicators call for careful monitoring. In June, the Consumer Price Index declined 0.1% on a seasonally adjusted basis but was still up 3% year-over-year. Excluding food and energy, the index recorded a modest 0.1% increase, the smallest in almost 3 years. Building permits for privately-owned housing units increased 3.4% in June but were still down 3.1% compared to the same month last year. Housing completions surged 10.1% between May and June, fueling a significant year-over-year increase of 15.5%. Initial unemployment claims rose to 243,000 in the week ending July 13, which was a 20,000 increase from the preceding week. Federal Reserve Chair Jerome Powell announced the Fed will not wait for inflation to reach 2% before cutting interest rates. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

Rent-to-Income Ratios Trend Down in Market-Rate Apartments

2025-01-22T03:13:46-06:00

Across the nation’s market rate apartments, rent-to-income ratios have ticked down over the last couple months to stand firmly below 23%. Rent-to-income ratios, tracked on a trailing 12-month basis, ticked below 23% in October 2023 – at approximately the same time that conventional rent growth stagnated nationwide – and registered at 22.7% as of June, according to data from RealPage Market Analytics. While that ratio varies across markets, Midwest markets such as Detroit and Chicago, along with Pittsburgh claim among the lowest in the nation. Alternatively, two California markets – Riverside and San Diego – claim the highest rent-to-income ratios in the nation as of June. Meanwhile, average monthly incomes on executed leases (which would include all income for a unit, such as dual-income roommates or couples) nearly hit $8,800 in June, translating to a little over $105,000 per year.

Student Housing Lift Likely on the Way in Athens, GA

2025-01-22T03:13:46-06:00

Apartment occupancy in Athens-Clarke County, GA has been steadily trending up over the last 13 years. Still, this market, which is home to about 15,000 apartment units, experiences consistent seasonality in apartment occupancy, coinciding with University of Georgia students snaping up available apartments every autumn. The University of Georgia, located in Athens, has a total enrollment of over 40,000 students. While the late spring and early summer months typically mark the trough of apartment occupancy, the late summer and early fall months, conversely, mark a significant upswing in absorption, according to data from RealPage Market Analytics. From June – when students generally move out – to September – when they generally move back in – marks the most significant occupancy shifts in Athens. Athens tends to see about a 100-basis point (bps) jump in occupancy from June to September, although that surge has been less severe since the onset of the COVID-19 outbreak in 2020. Still, if averaging the uptick in occupancy from June to September from 2020, a 30-bps jump can be expected from the June reading of 93.6%.

RealPage Forecast Points to Improved Rent Growth in 2025

2026-03-04T06:52:56-06:00

The U.S. economy displayed resilience in 2nd quarter 2024, adding over 532,000 jobs, bringing total job creation to over 1.3 million year-to-date, based on seasonally adjusted data from the Bureau of Labor Statistics. Our employment forecast highlights that the top markets with the most significant employment gains in calendar 2024 are expected to be New York, Los Angeles, Houston, Phoenix and Dallas. On the supply side, our delivery pipeline anticipates just over 629,000 apartments will be delivered in calendar 2024. However, supply is expected to drop by roughly 20% in 2025, with nearly 497,000 units scheduled to complete. In terms of demand, over 612,000 apartment units are expected to be absorbed in 2024, with a 12% drop anticipated in 2025. @include('site.elements.media.image', ['fileId' => 24726, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Despite strong demand, rent growth has been somewhat slower than expected year-to-date through 2nd quarter 2024 due to various exogenous factors. Our most recent forecast indicates that 50% of the top 50 markets should see annual rent growth between 2% and 3% in calendar year 2024. Additionally, 24% of these markets are likely to experience growth between 1% and 2%, 18% could see growth below 1%, and a few markets are anticipated to see virtually no growth at all. Notably, only Atlanta and Jacksonville are expected to experience rent cuts of 1% or more. Looking ahead to 2025, we anticipate a different landscape. With somewhat weaker supply, robust demand, and a more favorable economy, approximately 40% of the top 50 markets could experience annual rent growth of more than 3%. About 55% of the markets are expected to see rents grow between 2% and 3%, while a little over 5% could record growth below 2% in 2025.

Major Markets with the Best Post-Pandemic Jobs Comeback

2024-07-12T11:45:52-05:00

By spring 2022, the U.S. overall had recouped all the jobs lost during the COVID-19 pandemic, though some markets were slower to recover than others. As of May 2024, nearly all of the nation’s major markets had employment bases above their pre-pandemic levels. The nation at large grew total employment nearly 6% between February 2020 and May 2024, based on seasonally unadjusted data from the Bureau of Labor Statistics. All but three of the nation’s largest 50 apartment markets (San Francisco, Los Angeles and Milwaukee) recorded total employment above February 2020 levels as of May. Five markets had employment bases that were more than 200,000 jobs above the pre-pandemic level. And 13 markets stood roughly 100,000 jobs to 200,000 jobs above pre-pandemic figures. Dallas has witnessed the nation’s best recovery, gaining over 343,000 jobs from February 2020 to May 2024, for a growth rate of 12.6%. Only Austin saw a larger proportionate increase of 18.6%, with the addition of 213,000 jobs during that same period.

Student Housing Rent Growth Softens as Pre-Leasing Chugs On in June

2026-03-04T06:52:56-06:00

U.S. student housing pre-leasing continues to increase at a seasonally normal rate in Fall 2024, and remains above pre-pandemic trends even though momentum has slowed from the previous two years. As of June, roughly 84.5% of beds at the core 175 universities tracked by RealPage have been leased for Fall 2024, compared to a rate of 85.8% one year ago. June’s pre-lease rate also falls below the June 2022 pre-lease rate for Fall 2023 of 86.2%. @include('site.elements.media.image', ['fileId' => 24599, 'attributes' => ['border' => '0']]) Pre-lease momentum did climb notably in June, up 6% since May. This was above average, as leasing generally slows in the summer months when students leave campus. In comparison, the May to June increase in 2023 was milder at 5.5%. The next few months of the pre-lease season could see approximately a 5% jump in pre-lease momentum month-over-month, if the last two summers are any indication. Across distances from campus, properties farthest from campus reported the tightest pre-lease occupancy as of June at just above 85%. Properties within a half mile of campus (84.5%) matched the RealPage 175 average, while properties within a half mile to one mile of campus garnered the lowest (but still historically strong) pre-lease occupancy of 84% as of June. @include('site.elements.media.image', ['fileId' => 24598, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '552']]) Across the RealPage 175, annual effective rent growth softened to 4.4% in June, which was the lowest rate seen so far this pre-lease season. Properties more than one mile from campus continued to report the strongest rent growth at nearly 6% as of June, followed by slightly softer readings at properties closer to campus.

Strong Apartment Occupancy in Boulder, Despite Extreme Seasonality

2025-01-22T03:13:46-06:00

Unlike its much larger neighbor to the southeast, Boulder’s apartment occupancy stands firmly above the national norm. As of June, apartment occupancy in Boulder clocked in at 94.8%, compared to a much lower reading of 93.8% in Denver, according to RealPage Market Analytics data. That pattern generally rings true across the neighboring Colorado markets as Boulder’s much smaller apartment inventory benefits heavily from University of Colorado Boulder’s 37,000 students. As such, Boulder also experiences swings in occupancy readings corresponding to the academic calendar. Boulder’s apartment occupancy typically hits a low during summer break in June, but then predictably ticks back up in the autumn when students return. For context, total apartment inventory in Boulder of about 31,000 units is approximately one tenth the size of neighboring Denver where total inventory is more like 336,000 units.

Though Slowing, U.S. Labor Market Remains Strong

2026-03-04T06:52:56-06:00

Hiring among U.S. employers slowed in June, but job growth remained at a healthy pace. The increase in hiring slightly outpaced economists’ projections and came amid persistently high interest rates and slowing consumer spending. Despite the increase in hiring, the unemployment rate edged higher as more people entered the labor force. @include('site.elements.media.image', ['fileId' => 24487, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Employers added roughly 206,000 workers to payrolls in June 2024, according to a survey of businesses by the Bureau of Labor Statistics. Those additions came in below the 218,000 jobs gained in May (which was revised down) but were slightly above what economists were forecasting (190,000 to 200,000 jobs). The U.S. economy has now added jobs for 42 consecutive months, the fifth-longest period of job base expansion on record dating back to 1939. Of note: The job counts for April and May were revised down. Downward revisions to April 2024 data showed 57,000 fewer jobs were added than previously reported, down to 108,000 positions. The May 2024 job growth number was revised down by 54,000 jobs to a total of 218,000 positions. With these revisions, employment gains in April and May combined were 111,000 jobs lower than previously reported. @include('site.elements.media.image', ['fileId' => 24486, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Job gains in June were lower than the monthly average of around 220,000 jobs added over the previous 12 months but were still above pre-pandemic norms. From 2015 to 2019, the U.S. economy added an average of roughly 190,000 jobs each month. On an annual basis, the nation gained roughly 2.61 million jobs as of June 2024. That was the weakest annual gain in over three years but still registered above the pre-pandemic average of around 2.4 million jobs added annually from 2015 to 2019. The U.S. economy has recovered all the net jobs lost duri...

U.S. Apartment Demand Surges in 2nd Quarter

2026-03-04T06:52:56-06:00

While supply continues to garner the lion’s share of apartment industry-focused headlines, there’s an equally remarkable demand surge brewing across the U.S. apartment market. In fact, the impressive demand reading in the year-ending 2nd quarter 2024 may be difficult to overstate. Some 390,000 apartment units were absorbed on net over the past 12 months, according to data from RealPage Market Analytics. Dating back to the start of the new millennium, this latest annual reading ranks as the eighth-largest figure on record. Only the pandemic-era boom from mid-2021 to mid-2022, the year-ending 3rd quarter 2018 and the year-ending 4th quarter 2000 figures outpaced that of the past 12 months. @include('site.elements.media.image', ['fileId' => 24470, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) But perhaps most impressive within the context of the pandemic era boom is how many units have been absorbed year-to-date. Some 257,000 units have been absorbed during the first two quarters of 2024, essentially in line with the all-time high set in the pandemic-era demand swell which saw about 270,000 units absorbed in the first half of 2021. While the gap is closing, record supply continues to moderately outpace demand. More than half a million new market-rate apartment units delivered in the past 12 months. This not only represents a 45% increase from the same time horizon in the previous 12-month period, but it is remarkably the highest total number of apartment units delivered since 1986. Considering an additional 629,000 market-rate apartment units are expected to deliver in the next 12 months, headlines will most likely continue to focus on supply-side fundamentals. Apartment Occupancy and Rent Growth Stabilize The narrowed gap between supply and demand is exhibited by stabilized national occupancy and rent growth rates. Occupancy remained at 94.2% in June, holding steady for three consecutive months. Though demand is arguably exceptional...

Ranking Apartment Rent-to-Income Ratios Across California

2025-01-22T03:13:46-06:00

California might have a reputation as having high apartment prices, but that isn’t necessarily the case statewide when adding the additional context of rent-to-income ratios. For example, while San Francisco has the highest effective apartment rents among California’s major markets at $3,268 as of May 2024, incomes are comparatively high in the Bay Area, translating a median rent-to-income ratio below the national norm in San Francisco. Nationwide, rent-to-income ratios hovered around 22.7% as of May, on a trailing 12-month basis, according to data from RealPage Market Analytics. Among major markets, Riverside claimed the state’s highest rent-to-income ratio at 29.9%. Meanwhile San Diego, Oakland, San Francisco, Anaheim, Los Angeles and Sacramento also posted rent-to-income ratios above the national norm. Three California markets – San Francisco, San Jose and Stockton – posted rent-to-income ratios below the national norm. Comparatively affordable Stockton boasted the state’s lowest effective rents at $1,868 and the lowest rent-to-income ratio at 18.7%. RealPage’s rent-to-income ratio represents signed new leases in market-rate apartments, calculated on a trailing 12-month basis to eliminate seasonality.

Mild Supply Headwinds in Lower Midwest Result in Steadier Performance

2025-04-21T16:35:19-05:00

The apartment market performance in the Lower Midwest region isn’t as volatile as some other areas of the nation, partially because inventory growth has remained manageable. Inventory growth in the Lower Midwest – which includes major markets like Kansas City and St. Louis – has been steady, with an increase of just under 2% in the year-ending 1st quarter. Meanwhile, the U.S. overall logged annual inventory growth of 2.5% during that time frame. The slow-and-steady pace of new supply in the Midwest has allowed market conditions to push forward steadily as well. Rent growth in the Lower Midwest region was at a solid 2.7% in the year-ending 1st quarter, well ahead of the national norm of just 0.2%. Looking forward, the inventory growth gap between the Lower Midwest region and the U.S. overall is scheduled to shrink in the coming year, and the same is forecast to happen to the rent growth gap.

Starts and Permits Drop for Both Multifamily and Single-Family

2026-03-04T06:52:56-06:00

Annualized starts and permits have been slowing for multifamily units for almost two years, but the trend has also turned down for single-family development in the past few months. The seasonally adjusted annual rate (SAAR) for multifamily starts in May fell by 10.3% from April and dropped by almost 52% from May 2023 to 278,000 units as increased interest rates and a tighter lending environment has put the brakes on the once surging development cycle. Likewise, the precursor building permit totals for multifamily declined 6.1% from April’s SAAR and 31.4% from last May to 382,000 units. @include('site.elements.media.image', ['fileId' => 24333, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) The number of multifamily units under construction slipped 1.5% from April to 898,000 units in May and were down 8.6% from a year earlier. Additionally, the number of multifamily units authorized but not started were up 1.6% to 129,000 units in May but were down 7.9% from one year ago. Meanwhile, single-family starts (which had been increasing steadily since the end of 2022) were down 5.2% from last month and down 1.7% from last year to 982,000 units, the first drop below one million units since last October. The annualized rate for single-family permitting also declined for the month (-2.9%) but were 3.4% higher than last May. Single-family completions were down 8.5% for the month of May but up slightly (2%) year-over-year to 1.027 million units. The number of single-family units under construction declined 0.6% from April to 679,000 units in May and were down 2% from a year earlier. Single-family units authorized but not started were down 0.7% for the month, but up 2.9% for the year at 140,000 units. Together with the small 2- to 4-unit figures, total residential permitting fell 3.8% from last month and were down 9.5% for the year to 1.386 million units. May’s large decrease in annual multifamily starts brought the SAAR of total residential starts...

RealPage Economy Express Episode 30

2025-01-22T03:13:46-06:00

Episode 30: Economic indicators suggest caution due to inflationary pressure. The U.S. Leading Economic Index, which is an early indication of where the economy is headed, fell 2% between November and May, pointing to a continued downward trend. One of the main contributors to this decline was the reduction in building permits. The University of Michigan’s consumer sentiment index dropped in June, due to concerns about high inflation rates. Building permits in May declined 3.8% from April and were 9.5% lower than a year earlier. Housing starts fell 5.5% month-over-month as of May and were down 19.3% compared to May 2023. Existing-home sales decreased 0.7% in May, but median sales prices reached a record high of $419,300. The economic trajectory for the rest of 2024 will likely depend on consumer confidence and adjustments in the housing market. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

In the Latest Harvard Report, Cost Burdens Continue for Renters and Homeowners

2026-03-04T06:52:56-06:00

Cost burdens continue for homeowners as well as renters, according to the latest report from Joint Center for Housing Studies of Harvard University. The quarterly report, which utilized data from RealPage Market Analytics, among other sources, emphasized that apartment rents and for-sale housing prices remained elevated in early 2024, as inventories remain historically low. While construction for both single-family homes and apartments is accelerating, deliveries are not yet coming online at a quick enough pace. @include('site.elements.media.image', ['fileId' => 24277, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) The price of single-family homes rebounded to a new all-time high in early 2024, quite the feat in the face of persistently elevated interest rates. After declining briefly in early 2023, home prices were back up in the first few months of 2024, climbing at an annual rate of 6.4% as of February, according to the S&P CoreLogic Case-Shiller U.S. National Home Price Index. U.S. home prices are up a significant 47% when indexed back to early 2020. Across the apartment market, rent change slowed recently, but remained significant by historic standards. Effective asking rents for professionally managed apartments ticked up just 0.2% year-over-year in early 2024, with change measured on a same-store basis. However, when indexed to 2020, rents were up a notable 26% nationwide. New deliveries in multifamily stock are surging, and single-family construction is also accelerating, but any cost burden relief inspired by new supply is limited by new household formation, which continues at a robust pace. Additionally, homeowner cost burdens are also being driven upward by growing taxes and insurance costs. Ongoing development constraints and the high cost of construction are also weighing on prices. Read the full report from Joint Center for Housing Studies of Harvard University here.

Birmingham Logs All-Time High Apartment Deliveries in 2024

2025-01-22T03:13:46-06:00

The small Alabama market of Birmingham-Hoover has been consistently growing apartment inventory over the last decade. The market, which has about 80,000 units of total inventory, delivered its highest ever supply load in the year-ending 1st quarter 2024 – and that rate is set to be outdone later this year, according to data from RealPage Market Analytics. Birmingham-Hoover, which has a population of over 1.1 million residents, received a record 1,510 new units in the year-ending 1st quarter, growing total inventory just under 2%. By mid-2024, the rate of annual inventory growth will climb to 2.5% as over 2,000 units are expected to deliver in the year-ending 3rd and 4th quarters. Construction delays could curb those figures somewhat but, regardless, this market has already grown total inventory over 11% in the last decade. Huntsville – another Alabama market with explosive apartment growth – is located about 100 miles north of Birmingham.

Top Job Gain Markets Show Modest Increases

2026-03-04T06:52:56-06:00

May’s national job gain numbers were surprisingly strong (on a seasonally adjusted annual rate) but that didn’t translate to metro-level gains (not seasonally adjusted) as much as would be expected. According to data released by the Bureau of Labor Statistics, only six of this month’s top 10 markets for employment gains increased their 12-month totals from April, and those increases averaged at just 4,600 jobs. The remaining four markets had slight-to-moderate decreases to their annual job gain totals from the previous month. Eight of April’s top 10 job creation markets returned in May with a few changing places. New York remained in the #1 spot with 101,200 jobs gained for the year-ending May, decreasing by 13,300 jobs from April. Houston returned at #2 with a gain of 81,700 jobs through May, up just 1,900 jobs from April’s revised total. Phoenix regained the #3 spot from Dallas with 52,300 jobs gained, up 1,100 jobs from April. Dallas slipped to #4, adding 47,400 jobs, just 700 less than in April. Revisions to last month’s figures would have placed Dallas at #4 in April as well. @include('site.elements.media.image', ['fileId' => 24201, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '613']]) Las Vegas remained in the #5 spot, gaining 45,200 jobs for the year, up 2,000 jobs from April’s total. Philadelphia stayed in the #6 spot with 44,300 jobs gained, up by about 7,000 jobs from last month’s downwardly revised April figure. Atlanta also remained in place at #7 with 34,600 new jobs, 4,800 less than in April. Miami returned at #8 this month, gaining 33,800 jobs, with a similar decline as Atlanta of 4,100 jobs from last month. Last month’s #9 and #10 (Los Angeles and Sacramento) fell out of the top 10 in May, replaced by San Antonio (30,000 jobs gained) and Washington, DC (28,900 jobs gained). In fact, Washington, DC’s increase of 13,300 jobs from April’s total gain offset the 13,300-job decrease for New York in the same period. The total num...

Student Housing Pre-Lease Velocity Cools from Recent Highs, But Remains Strong

2025-04-21T16:39:56-05:00

Though faded from the record highs of 2022 and 2023, student housing pre-lease occupancy for the Fall 2024 school year remains solid by historic standards. The pre-lease rate through May 2024 stood at just over 77%, which was a significant 400 basis points (bps) ahead of the long-term average for this time of year, which was closer to 73%. While solid, however, the May 2024 rate was still about 100 bps behind what the student housing market was seeing this time same time last year and was also a bit behind the 2022 rate. It makes sense to see student housing pre-lease figures coming down after reaching all-time highs in the past two years, as the post-COVID enrollment lift that some campuses saw starts to normalize.

Three Small New York Markets Among Nation’s Rent Growth Leaders

2026-03-04T06:52:56-06:00

Small markets monopolized the nation’s rent growth leaderboard over the last year and three of the top 10 markets were in New York. Among the nation’s 150 core apartment markets, 22 recorded rent growth of more than 3.5% in the year-ending May 2024, according to data from RealPage Market Analytics. All those 22 markets were either secondary or tertiary markets. For comparison, the U.S. overall averaged an annual rent increase of just 0.2% in May. Looking at just the top 10 rent growth performances over the past year, New York markets took three spots. Syracuse, Buffalo and Rochester recorded rent growth of roughly 5% to 7% in the year-ending May 2024. In addition, those three markets also ranked in the top 25 for occupancy performances among the core 150 markets in May. @include('site.elements.media.image', ['fileId' => 24050, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '721']]) Those small New York markets are all situated along IH-90 in the northwest portion of the state. Rochester sits equidistant between Buffalo (to the west) and Syracuse (to the east), with only 150 miles separating the two outer markets. The closest major markets to that trio are New York, Pittsburgh and Cleveland. Syracuse is about 250 miles northwest of New York City and Buffalo is roughly 200 miles northeast of Pittsburgh and Cleveland. Syracuse, with nearly 43,000 existing units, is the nation’s 96th largest apartment market. Syracuse logged annual rent growth of 6.7% as of May, a performance that ranked second nationally, behind only Midland/Odessa. Prior to the pandemic (in the 2015-2019 time frame), rent growth in Syracuse averaged much lower at 2.4% annually. As of May, occupancy in Syracuse registered at 97.4%, tying with Champaign-Urbana, IL to lead the nation’s 150 largest markets. Syracuse’s May occupancy reading was 320 basis points (bps) above the national average (94.2%) and 80 bps above the market’s five-year average leading up to the pandemic (96.6%)....

From Nation's Best to Nation's Worst Rent Performance in Less Than Two Years

2025-01-22T03:13:46-06:00

The Cape Coral-Fort Myers apartment market recorded the nation’s weakest annual rent change performance in May. Effective asking rents in the market declined 9.1% in the year-ending May, according to RealPage Market Analytics. In comparison, the U.S. overall saw mild annual rent growth of 0.2% in that time frame. Cape Coral-Fort Myers is a mid-sized apartment market with roughly 55,000 existing units. This market has logged year-over-year rent cuts as deep as 6% to 10% over the past seven months, the nation’s steepest declines during that period. That’s a stark contrast compared to the double-digit increases the market sustained from mid-2021 through early 2023. During that period, annual rent growth peaked at 34.7% in April 2022 and the market led the nation with annual rent growth of roughly 20% to 30% in July, August and September of that same year. Apartment operators in Cape Coral-Fort Myers have been cutting rents to try to preserve occupancy. Since early 2022, occupancy has fallen 620 basis points to register at 92% in May 2024, below the national average of 94.2%.

Very Little Premium for Class A Units in These Apartment Markets

2026-03-04T06:52:56-06:00

Across the U.S., apartment prices vary based on product class. Class A units – the most high-end, professionally managed apartment units nationwide – have a monthly rent about 28% higher than their Class B counterparts. In several major markets across the nation, however, that delta is much smaller. Class A apartment units had an average monthly rent of $2,298 as of May, according to data from RealPage Market Analytics. That compares to prices that are about $500 less for Class B units with an average monthly rent of $1,795 as of May, resulting in a 28% rent premium for Class A units nationwide. Two major markets, however, boast a Class A premium at about half that rate. In Portland, Class A rents run less than 13% higher than Class B prices. And in Orlando, Class A rents run less than 15% above Class B rates. @include('site.elements.media.image', ['fileId' => 23760, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Markets that registered Class A premiums under 20% include Las Vegas, Anaheim, Denver, Jacksonville, Richmond, Riverside and San Diego. A couple of these markets – Orlando and Jacksonville – posted some of the deepest rent cuts nationwide as of May. This small delta between Class A and B rents supports an economist theory called filtering. In high-supply markets where rents on new leases are being cut or offered with deep concessions, would-be Class B renters can now afford a Class A unit with relatively little strain to their budgets. That creates availability in more affordable Class B units, which may then be snapped up by would-be Class C renters who, again, have seen rents compress. All this creates more vacancy at the bottom of the price spectrum, increasing availability of affordable units in a given market. On the other end of the Class A premium spectrum, only one major market nationwide posted Class A rents more than 50% higher than Class B rents. Newark’s Class A rent hovered just below $4,000 in May, compared to...

Slowing Apartment Development in Southeast Markets May Help Occupancy

2025-04-21T16:39:18-05:00

While apartment occupancy across the Southeast has been challenged by elevated construction for several years, a recent slowdown in development activity might help boost market fundamentals across the region. The Southeast – which includes major markets like Atlanta, Nashville and Memphis, as well as smaller markets Louisville and New Orleans – recorded its lowest occupancy level in 10 years as of 1st quarter 2024, at 93.1%. This low rate was the result of developers delivering more new apartment supply than the Southeast markets could absorb. And while that boom is not over yet, construction levels are starting to taper. New apartment development has fallen by almost 20% in the past 12 months alone. All of the region’s key markets are seeing supply moderate, and that should alleviate some of the pressure on occupancy rates.

RealPage Economy Express Episode 29

2025-01-22T03:13:46-06:00

Episode 29: Inflation is under control, and we might get a rate cut in 2024 Nonfarm payroll employment increased by a solid 272,000 jobs in May, reports the Bureau of Labor Statistics. Still, the U.S. unemployment rate remained steady at 4%. April’s total construction spending dipped slightly (0.1%) from March, but was up a robust 10% year-over-year. Private residential construction edged up 0.1%, despite economic uncertainties. Public construction spending decreased 0.2%, particularly in educational and highway projects. Inflation is stable, with the Consumer Price Index unchanged in May (following a 0.3% rise in April). The Energy index fell by 2%, driven by lower gasoline prices, while the Shelter index rose by 0.4% for the fourth consecutive month. Producer prices declined 0.2% in May (after a 0.5% increase in April). The Federal Reserve kept policy rates unchanged for the moment. The Summary of Economic Projections suggests one rate cut could happen in 2024, with a possibility of that occurring in November or September. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

Most U.S. Apartment Markets Recording Occupancy Improvement

2026-03-04T06:52:56-06:00

A sum of April and May's month-over-month apartment occupancy increases shows that most markets across the country are seeing signs of improvement in local readings. The nation overall saw April and May combine for a 0.1% increase in occupancy, according to data from RealPage Market Analytics. The same time last year, occupancy rates ticked down by a rounding error of -0.02%. Even though that was a miniscule drop, the fact that occupancy was falling during some of the busier leasing months suggested 2023 was going to be tough sledding. And as shared earlier this week, a 0.1% increase for April and May 2024 is modest by historic comparisons. But you have to keep in mind the sheer volume of units delivering to appreciate the relative resilience of occupancy. Looking by market, it appears that many metros are finally seeing those demand numbers catch back up closer to supply. In some instances, such as Memphis, Greensboro/Winston-Salem and Baltimore, it's less about demand catching back up to supply; rather, these markets seem to have just finally found their floor. Memphis, for example, saw occupancy fall by 0.4% during April and May in 2023. This year however, rates increased by about 0.2% resulting in a year-over-year change of about 0.6%. That's a big swing in the grand scheme of it all. @include('site.elements.media.image', ['fileId' => 23751, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Perhaps more impressive are the places like Phoenix, Nashville and even Ft. Worth, where occupancy recorded modest-to-strong improvement in 2024. In Phoenix, occupancy increased about 0.15% in April and May 2024. This same time last year, occupancy was approaching a 0.4% contraction. Arguably more impressive is Nashville's bump of nearly 0.4% in April and May of this year. In the case of those markets (could add Richmond in there too), it appears that the story is one of demand catching back up to supply. There's still a lot of work left to be do...

More Than 76,000 Build-to-Rent Units Under Construction in the South

2026-03-04T06:52:56-06:00

Although inflation in the U.S. eased in May, the benchmark interest rate remains at a 23-year peak. In a high inflationary environment with high mortgage rates and limited single-family inventories, renting remains a top option for a select portion of the U.S. population. Developers in the build-to-rent (BTR) space have stepped up to fill that need. Nationally, developers in the South and West lead the pack in the BTR space with roughly 88% of the 119,445 BTR units under construction as of May. On its own, the South claims 64% of the nation’s BTR units under construction, according to RealPage Market Analytics. At the end of May, the South led the U.S. with 76,674 BTR units under construction completing through 2nd quarter 2027. That total includes properties in lease-up where construction is ongoing and surpasses the next closest region by nearly 48,000 units. The West numbers are also significant, however, with a total of 28,618 BTR units under construction completing through 3rd quarter 2026. @include('site.elements.media.image', ['fileId' => 23829, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) With 11,620 units under construction scheduled to complete by 3rd quarter 2025, the Midwest ranks third for the number of BTR units under construction. Rounding out the four regions is the Northeast with 2,533 units under construction completing through the end of 2025. BTR, as RealPage defines it, includes single-family housing that is fully detached, semi-detached (semi-attached, side-by-side), row houses, duplexes, quadruplexes and townhouses built for rental. Homing in on the leading markets in the BTR arena, Phoenix in the West leads the nation with 18,210 BTR units under construction. The South claims most of the next 15 spots with only two Midwest markets (Columbus and Chicago) showing more than 1,500 BTR units under construction. In the number two spot is Dallas with 8,198 BTR units underway, while Atlanta claimed the third posi...

Markets with the Most Fortune 500 Headquarters in 2024

2025-08-04T12:01:13-05:00

The nation’s 500 biggest revenue-generating businesses produced a total of $18.8 trillion in revenue during 2023, an increase of 4% from 2022, according to the recently released 2024 Fortune 500 rankings. That revenue figure represents roughly two-thirds of the nation’s gross domestic product. The companies that made it to the Fortune 500 list this year are headquartered in 226 cities in 37 states and fall within 106 markets, based on apartment markets defined by RealPage Market Analytics. New York continues to rank as the nation’s top market with the headquarters of 47 Fortune 500 companies in the 2024 rankings, matching the count from 2023’s list. The #2 market in the nation is Chicago, home to 30 Fortune 500 headquarters after losing one such company. At #3, Houston has 23 Fortune 500 headquarters, down by two companies over the past year. Dallas tied with San Jose in the #4 spot, both with 20 Fortune 500 headquarters. While San Jose’s count was unchanged, Dallas lost two Fortune 500 company headquarters over the past year. Washington, DC gained one company in the past year for the #6 ranking with 19 Fortune 500 headquarters. Atlanta’s Fortune 500 headquarter count remained unchanged from 2023 to 2024 at 16 and ranking #7 nationally. Minneapolis overtook Boston and San Francisco for the #8 slot, gaining one of those prestigious companies taking its count to 15. Boston and San Francisco tied at #9, both with 14 companies and both unchanged year-over-year. For a more updated version of this list, read about the markets with the most Fortune 500 companies in 2025.

10 Worst Apartment Occupancy Performers See Vacancies Climb

2025-01-22T03:13:46-06:00

Vacancies across the South have climbed in the face of a 40-plus year high supply wave. In May, the worst occupancy performers in the U.S. accounted for more than 749,600 apartment vacancies nationally, according to data from RealPage Market Analytics. Heavily concentrated in Gulf Coast states and the southeast, 11 markets logged occupancy at or below 92%. Myrtle Beach-Conway-North Myrtle Beach, by far the weakest occupancy performer in May, saw vacancies climb to nearly 45,500 units as occupancy dove to 90.3%, well below the South region norm (93.2%). San Antonio, one of three major markets on the list, accounted for a significant 210,300 vacant units as occupancy backtracked to 91.2%. Occupancy in Augusta (29,600 vacancies) and Baton Rouge (46,600 vacancies) tied at 91.4%. Two other top 50 markets saw vacancies increase north of 100,000 units: Memphis (101,400 vacant units with occupancy at 91.8%) and Jacksonville (131,400 vacant units with occupancy of 92%). A handful of markets chipped in more modest vacancies ranging from 23,500 units to 53,000 units, including Colorado Springs (92%), Cape Coral-Fort Myers (92%), Corpus Christi (91.5%), Shreveport (91.7%) and Lubbock (91.7%). Accelerated supply has consistently outpaced demand in these markets since 3rd quarter 2022, feeding the increase in existing units. The only exception was Shreveport which hasn’t seen any new units since mid-2019.

Still Historically Strong, Student Housing Pre-Leasing and Rent Growth Fall Below Year-Ago Records

2026-03-04T06:52:56-06:00

While still healthy and strong by pre-pandemic standards, the pre-lease momentum for Fall 2024 has fallen below concurrent rates from the previous two years. As of May, 78.6% of beds at the core 175 universities tracked by RealPage have been claimed for Fall 2024, compared to a rate of 80.3% one year ago, according to data from RealPage Market Analytics. May’s pre-lease rate also falls below the May 2022 pre-lease rate for Fall 2023 of 79.5%. @include('site.elements.media.image', ['fileId' => 23991, 'attributes' => ['border' => '0']]) May also marks the final month in the pre-lease season in which students generally reside on or around campus. Pre-lease momentum generally slows in the summer months when students leave campus. The next three months of the pre-lease season could see approximately a 5% jump in pre-lease momentum month-over-month, if the last two summers are any indication. Across distances from campus, properties farthest from campus reported the tightest pre-lease occupancy as of May at just below 80%. Properties within a half mile of campus (78.5%) approximately matched the RealPage 175 average, while properties within a half mile to one mile of campus garnered the lowest (but still historically strong) pre-lease occupancy of 78% as of May. @include('site.elements.media.image', ['fileId' => 23550, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '552']]) About 15 schools among the RealPage 175 reported pre-lease occupancy above 90% as of May, including Ole Miss, University of Arkansas, Tennessee, Virginia Tech, Purdue and Auburn, which generally lease up more quickly than average. Meanwhile, several of those same schools reported ultra-strong annual effective rent growth in May. The University of Tennessee continued to lead the nation in student housing rent growth at over 25% year-over-year in May, followed by growth above 10% at about 10 other campuses, including Ole Miss, University of Kentucky, Purdue, College of Charleston...

U.S. Job Growth Surges in May, Defying Expectations

2026-03-04T06:52:56-06:00

As a sign of sustained economic health, hiring among U.S. employers picked up in May. The increase in hiring defied economists’ projections and came amid persistently high interest rates and slowing consumer spending. Despite the increase in hiring, the unemployment rate edged higher, against expectations. @include('site.elements.media.image', ['fileId' => 23696, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Employers added roughly 272,000 workers to payrolls in May 2024, according to a survey of businesses by the Bureau of Labor Statistics. Those additions came in well above the 165,000 jobs gained in April (which was revised down) and was well above what economists were forecasting (+185,000 jobs to +190,000 jobs). The U.S. economy has now added jobs for 41 consecutive months, the fifth-longest period of job base expansion on record dating back to 1939. Of note: The job counts for March and April were revised down. Downward revisions to March 2024 data showed 5,000 fewer jobs were added than previously reported, down to 310,000 positions. The April 2024 job growth number was revised down by 10,000 jobs to a total of 165,000 positions. With these revisions, employment gains in March and April combined were 15,000 jobs lower than previously reported. @include('site.elements.media.image', ['fileId' => 23698, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Job gains in May were higher than the monthly average of around 232,000 jobs added over the previous 12 months and were well above pre-pandemic norms. From 2015 to 2019, the U.S. economy added an average of roughly 190,000 jobs each month. On an annual basis, the nation gained nearly 2.76 million jobs as of May 2024. While that was one of the weakest annual gains over the past three years, it still registered above the pre-pandemic average of around 2.4 million jobs added annually from 2015 to 2019. The U.S. economy has recovered all the net jobs lost dur...

Fayetteville’s Apartment Market Fundamentals Outperform U.S. Norms

2026-03-04T06:52:55-06:00

Market fundamentals in the Fayetteville-Springdale-Rogers, AR-MO apartment market have held up relatively well amid underlying demand drivers, despite some recent softening. Like most apartment markets across the country, Fayetteville has been experiencing deflating market fundamentals after a surge in occupancy and rents in 2021 and 2022. However, this apartment market with roughly 41,000 existing units typically registers occupancy above the U.S. norm and recent rent growth has been outperforming the national average. Located in northwest Arkansas, this market sits within the southwestern portion of the Ozarks. The county seat of Washington County, Fayetteville is the second most populated metropolitan area in the state, with roughly 590,400 people, according to 2023 estimates from the U.S. Census Bureau. The area has also been the state’s fastest growing, with its population increasing 7.3% from 2020 to 2023. That was the 10th fastest expansion rate among the nation’s core 150 apartment markets and far outpaced the national average growth rate of 1% during that same period. @include('site.elements.media.image', ['fileId' => 23444, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Despite some recent softening, Fayetteville’s apartment occupancy has remained above the U.S. average for nearly 12 years. In April 2024, occupancy in the market registered at 94.8%, according to data from RealPage Market Analytics. That was the third consecutive monthly reading below 95%, the first such occurrence since 2012. Still, Fayetteville’s April occupancy rate registered 60 basis points above the national average. For comparison, during the five years leading up to the pandemic (2015-2019), occupancy in Fayetteville averaged 98%, well above the national average of 95.2%. @include('site.elements.media.image', ['fileId' => 23443, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Looking at asset classes in Fayetteville, Class...

Strong Occupancy Persists in the Upper Midwest

2025-01-22T03:13:46-06:00

Tight apartment occupancy persists in the Upper Midwest region, consistently outpacing the national average. At 95.1%, Upper Midwest regional occupancy in May was nearly 100 basis points (bps) higher than the national norm. This same time last year, the gap between this region - which includes the markets of Chicago, Minneapolis and Indianapolis - and the U.S. was smaller at 80 bps, and two years ago the spread was even more modest at 60 bps. In fact, among the 48 markets RealPage surveyed across the Midwest, only two logged an occupancy rate below the national average as of May. Indianapolis was 93.4% occupied as of May, while the occupancy rate was at 89.6% in the small Muncie, Indiana market. For more information on the state of apartment market across the Upper Midwest region, including forecasts, watch the webcast Market Intelligence: Q2 Upper Midwest Update.

Small Markets that Have Not Recovered from COVID-Era Job Losses

2025-01-22T03:13:46-06:00

At the onset of the COVID-19 pandemic, the nation’s job market took a big hit. While all areas of the country where impacted, some were hit harder than others. As of April 2024, the nation at large had grown total employment nearly 5% since February 2020, based on data from the Bureau of Labor Statistics. However, not all markets have totally recovered all the jobs lost during the downturn. Nine of the largest 50 apartment markets across the country have failed to get back to the employment levels recorded prior to the pandemic, while 12 of the nation’s 100 secondary markets have yet to recoup all the jobs lost. Among those secondary markets, total employment in New Orleans sits nearly 24,800 jobs below the pre-pandemic employment level, marking the most severe deficit among those smaller markets and translating to a job base that is 4.2% below the pre-COVID norm. Among the nation’s larger markets, only Los Angeles (-43,600 jobs) and San Francisco (-43,100 jobs) have deeper holes to fill than New Orleans as of April. And on a percentage basis, New Orleans also had the worst outcome nationally. Urban Honolulu is another small market that is struggling to regain jobs lost during the pandemic. That market is 16,100 jobs below its pre-pandemic employment level, the fourth-worst result nationally. Urban Honolulu’s relative job deficit of 3.4% was the nation’s second-weakest performance.

U.S. Apartment Occupancy Demonstrates Resilience Amid Historic Supply

2026-03-04T06:52:56-06:00

The U.S. apartment market again appeared in solid shape in May as both occupancy and rent change fundamentals essentially held steady in recent readings. After softening throughout most of 2022 and 2023, occupancy for U.S. apartments held essentially in-line with readings seen throughout 2024 to stand at 94.2% in May, according to data from RealPage Market Analytics. May 2024 marked the seventh straight month in which occupancy has held at or above 94.1%, further solidifying the idea that the nation has reached a point of stabilization. Though May 2024’s occupancy (94.2%) was static month-over-month and therefore underperformed typical expectations, the broader idea that occupancy has found its level amid a 40-plus year high supply wave remains a testament to the depth of the nation’s demand for apartments. An unchanged occupancy reading at a time when the nation is delivering near-unprecedented volumes of new apartment supply indicates that renters continue to absorb new units at healthy rates nationwide. In fact, for 17 consecutive months now, the needle on occupancy hasn't moved more than 10 basis points (bps) in either direction. Occupancy was easing downward for much of 2023, but now the rate has remained essentially stable for the first five months of 2024. Across all four apartment regions, occupancy either ticked up marginally or remained unchanged in May. In the Midwest and Northeast, occupancy increased 10 bps month-over-month. In the South and West, occupancy did not change month-over-month. A growing share of major markets saw occupancy rates increase on a year-over-year basis. May 2024 saw eight of the nation’s 50 largest markets manage an increase in their local occupancy reading year-over-year. By comparison, just two markets (Minneapolis and San Francisco) recorded occupancy increases year-over-year at the start of 2024. The eight major markets that recorded annual occupancy increases in May 2024 included Richmond, West Palm Beach, San Francis...

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

2025-04-21T16:32:35-05:00

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.

Huntsville Has Been the Nation’s Fastest-Growing Apartment Market Since 2022

2026-03-04T06:52:55-06:00

Huntsville, AL remains the most aggressive market for apartment development since claiming that spot in 2022, hampering occupancy and rent growth performance. The onslaught of supply has overshadowed demand over the last five years as Huntsville’s existing unit count climbed, and vacancies increased. This small market with about 42,900 existing units, sits about two to three hours from both Nashville and Atlanta and is, comparatively, smaller than fellow Alabama markets Birmingham (81,145 existing units) and Mobile/Daphne (43,559 units). In the year-ending 1st quarter 2024, roughly 5,900 units wrapped up construction in Huntsville, expanding inventory a phenomenal 15.9%. Waiting in the wings are another 9,895 units in the construction pipeline, which amounts to 23% of existing units. About 6,900 of those units are projected to complete by the end of 1st quarter 2025, pushing inventory growth in the small market another 16.2%. That ratio ranks as the #1 rate for under construction inventory growth across the country, outpacing big markets like Dallas, Houston and Atlanta. Huntsville isn’t expected to see a peak in inventory growth until around the end of 2024. @include('site.elements.media.image', ['fileId' => 23305, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) For additional perspective, annual new supply in Huntsville averaged 2,164 units over the past five years, and annual inventory growth averaged 6.5%. Those numbers surpass the historical average annual delivery load of about 1,500 units seen in the past decade, resulting in average inventory growth of 4.6%. With inventory expanding rapidly, occupancy has hovered below the essentially full mark for the last 19 months, averaging 94.3%. In April 2024, Huntsville’s occupancy rate landed at 93.7%, about 270 basis points (bps) below the five-year average as the market works to absorb deliveries. The April rate was also 120 basis points behind Huntsville’s 10-year average and rough...

RealPage Economy Express Episode 28

2025-01-22T03:13:46-06:00

Episode 28: Signs of Stability Continue, Despite Caution Unemployment insurance claims decreased by 8,000 people in the week-ending May 18, according to the Bureau of Labor Statistics, suggesting a stable jobs market. Pending home sales dropped by 7.7% month-over-month in April due to rising interest rates, reports the National Association of Realtors. This paints a cautious picture of the housing market. All U.S. regions saw declines. Still, median existing-home price increased by 5.7% in the past year, indicating home values remain resilient, despite setbacks. Median sales prices for new homes climbed to $433,500 in April. The S&P CoreLogic Case-Shiller Index recorded a 6.5% annual gain in home prices, indicating robust appreciation in some markets. Business activity in May saw a notable uptick, with the U.S. Composite PMI Output Index soaring to 54.4, the highest since April 2022. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

A Look at Five Office to Apartment Conversions in Ohio

2026-03-04T06:52:55-06:00

As office vacancies rise, developers are targeting more downtown office buildings for conversion into residences. Office buildings in central business districts that have been mostly vacant since the pandemic might be obsolete as Class B or C offices, yet still have new life as potential apartment residences. It is sometimes cheaper and quicker to convert office skyscrapers into apartments than to build a new, luxury apartment tower from the ground up. Conversions are typically 15% to 20% less expensive than new apartment buildings and with faster completion times, according to NAIOP. To address a shortage of housing, especially affordable housing, some cities and states across the country are offering tax breaks to developers to incentivize these conversions with a stipulation that a certain percentage of apartments be set aside at below-market prices. Developers wanting to repurpose older buildings are seeking historic tax credits to help defer the costs of rehabilitation, which might not be viable without the credits. Here’s a look at five downtown office conversions that are planned or under construction in Ohio. @include('site.elements.media.image', ['fileId' => 23265, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Continental Centre The Bernstein Companies is planning to redevelop the Continental Centre office building in downtown Columbus, converting it into 409 apartments. The Washinton, DC-based developer purchased the 26-story tower at the corner of Gay and Fourth streets for nearly $12 million in 2021, the same year it was added to the National Register of Historic Places. The modernist architectural style building was originally built in 1973 as the headquarters for Ohio Bell Southwestern, with the last business tenants departing during the pandemic. The nearly $108 million rehabilitation project, which began in early 2023, will retain historic features such as original windows and quartzite wall cladding on the interior....

Multifamily Completions Continue Outpacing Starts

2026-03-04T06:52:55-06:00

The pace of multifamily completions exceeded multifamily starts for the ninth consecutive month in April. The seasonally adjusted annual rate (SAAR) for multifamily starts increased by 31.4% to 322,000 units from March’s unusually low rate, but was still down 32.9% from last April, according to the latest data release from the U.S. Census Bureau. Meanwhile, multifamily completions were reported at an annualized rate of 516,000 units, down 1.1% from last month but up 18.1% for the year. Multifamily permitting was down 9.1% from last month and the SAAR of 408,000 units permitted was 23% less than last April. @include('site.elements.media.image', ['fileId' => 23291, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) The number of multifamily units under construction slipped 1.6% from March to 919,000 units, down 5.2% from last year. Additionally, the number of multifamily units authorized but not started was down 3.8% to 126,000 units in April, down 16% from one year ago. Meanwhile, single-family starts were down just 0.4% from last month to 1.031 million units, but that was 17.7% greater than the year before. The annualized rate for single-family permitting also declined slightly for the month (-0.8%) but was 11.4% higher than last April. Single-family completions were up 15.4% for the month and 13.6% for the year to 1.092 million units. The number of single-family units under construction declined 1% from March to 682,000 units and was down 2% from one year ago. Single-family units authorized but not started were up 1.4% for the month and year at 142,000 units. Together with the small two-to-four unit figures, total residential permitting fell 3% from last month and was down 2% for the year to 1.44 million units. April’s large increase in annual multifamily starts brought the SAAR of total residential starts up 5.7% from last month to 1.36 million units, but that number was still down 0.6% from last year. @include('site.elements.media.i...

Lakeland, FL Is One of the Nation’s Fastest Growing Apartment Markets

2025-01-22T03:13:45-06:00

Some 2,565 units delivered in Lakeland-Winter Haven, FL in the year-ending 1st quarter 2024, according to data from RealPage Market Analytics. Although that delivery load may not be an aggressive number nationally, those new units exapnded inventory a stellar 8.6%, ranking Lakeland #5 across the nation’s largest 150 markets. Lakeland’s most recent peformance follows an explosive acceleration in supply over the last four years. For perspective, the most recent 12-month delivery load came close to surperceding the total number of units this small Florida market east of Tampa received in all of 2010 to 2019, when a toatl of 2,884 units were added, expanding inventory an average of just 1.3% per year. However, in 2020 completions started to pick up. From 2020 to 2023, the market added a notable 6,605 units in just a three-year period, expanding inventory an average of 5.5% annually. Another 4,418 units were under construction as of 2024’s 1st quarter with about 3,675 of those units expected to deliver within the next four quarters, pushing inventory another 11.3%. Should all those units complete in the next year, that expansion rate would rank #3 in the U.S. among top 150 markets and eclipse the nation’s expected norm of 3.5%.

Apartment Revenue Growth Sizable in Cleveland

2026-03-04T06:52:55-06:00

Cleveland’s apartment market was one of the nation’s top revenue growth performers in the past year, despite net move-outs and declining occupancy. The slow-and-steady Midwest markets have seen comparatively solid performance metrics of late, due to the region’s historic stability, and not because of great apartment demand. Cleveland doesn’t necessarily gain immediate attention from a young population, nor does it score high points in job growth opportunities on the national stage. But the local culture in Cleveland is more unique than you might expect. This the home of the Rock & Roll Hall of Fame. Tycoon John D. Rockefeller started the oil refining company that would eventually become Standard Oil in Cleveland. And the city is home to a burgeoning theatre district that is the second largest in the U.S., after only New York’s Lincoln Center. Cleveland’s largest employment sector is healthcare, and the market is home to the Cleveland Clinic, ranked as the nation’s second-best hospital, after only the Mayo Clinic in Minnesota. Economic diversity and historic stability have helped keep Cleveland’s apartment market ahead of national norms recently, and that can clearly be seen in revenue growth. Apartment revenues in Cleveland climbed 2.4% in the year-ending April, according to data from RealPage Market Analytics. By comparison, U.S. revenue change was still negative, falling by 0.4% in that time period. Still, Cleveland’s revenue increase was down from the annual revenue gains near 11% seen in 2022. @include('site.elements.media.image', ['fileId' => 23243, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Cleveland revenue change never fell into negative territory during the COVID-19 pandemic. While many major markets across the U.S. experienced revenue loss in 2020 and 2021, Cleveland continued to post gains, bottoming out at 0.8% in May 2020. Several typically stable Midwest markets made the list for top revenue growth performers in th...

Strength Returns to Boston’s Apartment Market

2025-01-22T03:13:45-06:00

Boston saw a strong return of apartment demand recently. Roughly 4,300 units were absorbed in Boston in the year-ending 1st quarter, leading to nation-best occupancy and rent growth performances among the largest 50 apartment markets. Boston’s diverse economic makeup has historically included a concentration of financial and investment groups. More recently, this market has expanded, emerging as the largest biotech hub in the world, with over 1,000 biotech companies and a large network of scientists from nearby universities. Economic stability helped Boston bounce back quickly from the COVID-19 pandemic and helped to keep occupancy above the 95% mark since March 2021. Also helping boost apartment market performance, Boston hasn’t seen a large supply wave like many other major metros nationwide. While over 7,000 units were delivered here in the year-ending 1st quarter, that’s a muted volume compared to nearby New York and not far ahead of the decade average for Boston. For more information on the state of the Northeast region apartment market, including forecasts, watch the webcast Market Intelligence: Q2 Northeast Region Update.

Job Gains Increase in Top Markets

2026-03-04T06:52:55-06:00

Despite slowing employment gains at the national level, several of the top markets for job gains increased payrolls in April. Seven of this month’s top 10 markets for employment gains increased their 12-month totals from March by an average of 14,500 jobs, according to data released by the Bureau of Labor Statistics. The remaining three markets had only slight decreases to their annual job gain totals from the previous month. Eight of March’s top 10 job creation markets returned in April with a few changing places. New York remained in the #1 spot with 107,300 jobs gained for the year-ending April, increasing by 36,100 jobs from March. Houston returned at #2 with a gain of 80,700 jobs through April, up 13,300 jobs for the month. Dallas edged Phoenix out of the #3 spot with 53,600 jobs gained, adding 10,300 more than in March. Phoenix slipped to the #4 spot by dropping 2,100 jobs to total 50,700 new jobs through April. @include('site.elements.media.image', ['fileId' => 23121, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '613']]) Las Vegas moved up to the #5 spot, gaining 43,000 jobs for the year, up 8,400 jobs from March’s total. Philadelphia moved up two spots to #6 with 39,500 jobs gained, also up by about 8,000 jobs from last month. Atlanta joined the top 10 list this month at #7 with 38,800 new jobs, 9,400 more than in March. Miami dropped to #8 this month, gaining 37,300 jobs, close to their total last month, while Los Angeles rejoined the top job gain list at #9 with 32,600 jobs gained, up by almost 16,000 jobs. Sacramento fell three places to #10 with 31,100 jobs gained, even with their total last month. The total number of jobs gained for the year-ending April for the top 10 markets was up about 98,000 jobs from their collective total last month. The next 10 markets (#11-#20) saw their combined annual jobs gains increase by about 10,000 jobs. For the first time since last December, at least one of the top 10 markets exceeded 100,0...

U.S. Apartment Transactions Slump to Lowest Level Since Pandemic

2025-01-22T03:13:45-06:00

Investments in U.S. apartments continued to decline in 2024’s 1st quarter amid the high cost of borrowing and economic uncertainty. Though the asset class remains an attractive commercial real estate investment, sales have fallen well below pre-pandemic levels. Nearly 1,040 apartment properties changed hands at a value of $20.6 billion during 1st quarter 2024, according to MSCI Real Capital Analytics. The overall sales volume during the quarter was down 25% from 1st quarter 2023, while the number of properties trading hands was down 26% during the same period. This was well below the 4th quarter 2021 peak, when around 5,400 properties changed hands for more than $166 billion as the result of pent-up demand following the onset of the pandemic. Recent activity was also well below the $42.2 billion quarterly average during the five years leading up to the pandemic (2015-2019). Prior to the pandemic, the value of quarterly apartment transactions hadn’t fallen below $21 billion since 1st quarter 2014. The average price per unit, while above pre-pandemic levels, has also continued to fall, registering at $190,184 in 1st quarter, down 6.5% year-over-year and the lowest level in three years. By comparison, per unit pricing from 2015 to 2019 averaged roughly $151,000. Meanwhile, cap rates for apartment transactions in 2024’s 1st quarter were up 50 basis points (bps) year-over-year, averaging 5.7%. That was the highest cap rate in nearly eight years. Still, multifamily cap rates during 1st quarter remained the lowest among major property types.

Employment Growth Slows in Interest Rate Sensitive Job Sectors

2026-03-04T06:52:55-06:00

The more interest rate sensitive employment sectors are seeing a bigger slowdown in employment growth (and in fact, job losses in some instances), indicating a rolling recession. The highest wage sectors such as Information (largely tech jobs), Professional and Business Services (office-based jobs) and Financial Activities have seen interest rate pressures erode recent growth. Conversely, sectors like Education and Health Services and Government, which are understandably well insulated from interest rates, are still achieving good to great growth, according to recent data from the Bureau of Labor Statistics. @include('site.elements.media.image', ['fileId' => 23047, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Construction and Leisure and Hospitality Services are two job sectors to keep an eye on in the next few months. Construction seems like it's bound to ease. Leisure and Hospitality Services has boomed due to pandemic-era excess savings, but with those savings burning off how long will that sector continue to see its strong growth? Overall, the Fed seems to have done a pretty good job of threading the needle for a soft landing thus far. There's always risk for an unforeseen economic shock, but the Fed had a Goldilocks-esque challenge of finding a rate that wasn't too hot, nor too cold, but instead just right. And current rates seem to be a sweet spot (albeit to the chagrin of some of those more interest rate sectors). Tying it all back to the housing market, the still-resilient overall nature of job growth has been a boon for demand. And perhaps surprisingly so, the drag on higher wage sectors hasn't translated to slowing Class A performance either. Considering overall resilience of housing demand, (keep in mind 1st quarter 2024 saw record absorption for the first 90 days of the year), there are no canaries in the coal mine that would suggest a widespread slowdown.

Mid-Atlantic Apartment Markets Log Limited Supply and Solid Occupancy

2025-01-22T03:13:45-06:00

The Mid-Atlantic region was among the nation’s leaders for apartment occupancy in April 2024. Average occupancy of 95.2% across the Mid-Atlantic markets was the second strongest showing in the U.S., beat only by the rate of 96.6% in the neighboring Northeast region. Regions that logged occupancy close to the Mid-Atlantic rate in April were the Upper Midwest and the West Coast. The remaining regions logged average rates around the U.S. norm (94.2%) or lower. The Mid-Atlantic region – home to Washington, DC, Newark, Philadelphia and Pittsburgh, among others – has benefited from strong demand and mild new supply recently. Just over 30,000 units were absorbed here in the year-ending 1st quarter. While concurrent deliveries were a bit higher at about 50,000 units, that’s relatively moderate compared to some other areas, and those completions expanded the existing apartment base by just 1.9%. For more information on the state of the Mid-Atlantic region apartment market, including forecasts, watch the webcast Market Intelligence: Q2 2024 Mid-Atlantic Region.

RealPage Economy Express Episode 27

2025-01-22T03:13:45-06:00

Episode 27: Expect Elevated Rates for Longer The U.S. economy added 175,000 nonfarm payroll jobs in April, a slowdown from the 242,000 average monthly gain over the past year, according to the Bureau of Labor Statistics. For the week ending May 4th, initial jobless claims rose to 231,000, an increase of 22,000 from the previous week's revised level, per the BLS. The Producer Price Index (PPI) for final demand increased by 0.5% in April after declining by 0.1% in March. The Consumer Price Index (CPI) rose by 0.3% in April, decelerating from March's 0.4% gain. In turn, the annual inflation rate ticked down to 3.4% in April, per the BLS. Influenced both by CPI and Fed Chair Jerome Powell’s recent remarks, we still believe a rate cut later in the year is possible. Consumer sentiment tumbled to 67.4% from 77.2% in April, according to the University of Michigan. While the latest reports showed moderating job growth and easing wage pressures, stubbornly high producer and consumer prices have forced the Fed to reiterate its commitment to keeping rates elevated until inflation is under control. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

Does the U.S. Apartment Market Still have a Prime Leasing Season?

2026-03-04T06:52:55-06:00

Apartment leasing has historically been reliably seasonal. The vast majority of absorption happens in the summer months, and then the off season accounts for minimal – or even negative – demand. In the last few years as the industry has experienced rapid changes, many operators are looking toward summer 2024 and wondering: How much strength in absorption can we really expect? In other words, do we still have a prime leasing season? In short, yes – but lately it’s been less radical than in the past. Historically, a preponderance of 12-month leases turned in the summer months and most renters approximately followed an academic calendar. Generally, those themes still ring true, but the pandemic’s impact on professionals’ ability to work from anywhere has disrupted this seasonality. In analyzing quarterly demand going back to 2000, a clear shift in prime leasing season demand patterns emerges, according to data from RealPage Market Analytics. In calendar 2023, demand during prime leasing season (roughly defined as 2nd and 3rd quarters, or April to September) continued to account for the majority of annual demand – but at a far less acute rate. @include('site.elements.media.image', ['fileId' => 22994, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) From 2000 to 2013, absorption during prime leasing season easily carried the calendar year for annual demand. In the most intense years from 2006 to 2009, which corresponds to the Great Recession, 2nd and 3rd quarters accounted for the only absorption of the calendar year, while 1st and 4th quarters recorded deep net move-outs. Due to that deep dichotomy during those years, prime leasing season demand ran as high as 5,000% higher than annual demand. Also throughout this time period, it was far more common that 1st and 4th quarters recorded net move-outs, making any demand during prime leasing season seem severe by comparison. @include('site.elements.media.image', ['fileId' => 22984, 'attributes'...

Chicago Claims Most Balanced Supply/Demand Relationship Nationwide

2026-03-04T06:52:55-06:00

Over the past five years, there has been a growing imbalance between supply and demand among many of the nation’s apartment markets. This is especially apparent over the past year as supply has been mounting to record levels across the country. Among the core 150 apartment markets tracked by RealPage, only 17 saw cumulative demand exceed supply from 2nd quarter 2019 through 1st quarter 2024. These markets were generally smaller, secondary and tertiary markets. Of the 17, only one ranks among the 50 largest markets nationally. @include('site.elements.media.image', ['fileId' => 22794, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Over the past five years, demand in Chicago totaled 41,902 units, exceeding completions of 40,068 units, according to data from RealPage Market Analytics. While that demand level ranked #9 nationally and the supply volume ranked #15 nationally, the 1,800 units of excess demand in Chicago over that five-year period ranked #1 nationally. That favorable balance between demand and supply has kept occupancy in the Windy City at roughly 95% or higher over much of the past five years. Only during the pandemic (in 2020 and into early 2021) did occupancy dip below the essentially full mark of 95%. As of 1st quarter 2024, occupancy in Chicago registered at 95.1%, 100 basis points (bps) above the national average (94.1%) and ranking #11 among the nation’s 50 largest markets. At the opposite end of the spectrum, Atlanta had the biggest deficit between demand and supply over the past five years. From 2nd quarter 2019 through 1st quarter 2024, demand in Atlanta totaled 49,134 units (#6 nationally) and supply totaled 67,371 units (#3 nationally), leaving a 18,237-unit shortfall in demand. As such, Atlanta’s occupancy dropped to an 11-year low of 92.2% in 2024’s 1st quarter. @include('site.elements.media.image', ['fileId' => 22793, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) In a contrast to the...

Recent Supply High Softens Apartment Fundamentals in Albuquerque

2025-01-22T03:13:45-06:00

Apartment supply has historically been limited in Albuquerque. From 2003 through 2022, the market added less than 6,100 units, expanding inventory an average of just 310 units (0.5%) per year. However, completions began picking up in the second half of 2023. In the year-ending 1st quarter 2024, Albuquerque added 1,038 units to its apartment stock. While that new inventory expanded the existing unit base just 1.8%, it marked a 25-year high for the New Mexico market, according to data from RealPage Market Analytics. Although that’s not an aggressive expansion rate nationally, it’s enough to cause weakness in the local apartment market. In 2024’s 1st quarter, occupancy in Albuquerque remained at an eight-year low of 93.6%. That rate was down 380 basis points (bps) from the all-time high of 97.4% achieved just over two years ago. Meanwhile, effective asking rents rose 1.4% in the year-ending 1st quarter, Albuquerque’s second-weakest performance in five years. Even more new supply is on the way. Albuquerque is set to receive 2,083 units in the year-ending 1st quarter 2025. Should all those units complete as scheduled, inventory will expand by a 29-year high of 3.6%.

High Supply Submarkets Log Deepest Rent Cuts in Class B and C Stock

2025-01-22T03:13:45-06:00

In fast-growing submarkets, apartment rent cuts are the deepest amid Class B and C product. It’s not surprising to see that price declines were the worst in the year-ending 1st quarter in areas where the most new apartment supply delivered. Or that rents increased in submarkets with minimal new supply. But what might be surprising is the distribution of those cuts across the product spectrum. It was not the Class A stock – receiving the most competition from new supply – that saw the steepest rate cuts in the past year. In fact, Class A prices increased for the most part across the spectrum, except for extreme cases, in submarkets where deliveries amount to more than 10% of existing stock. But even in those cases, rent cuts in the year-ending 1st quarter were moderate at 2%, according to data from RealPage Market Analytics. Meanwhile, price declines were steeper in Class B (-3.2%) and C product (-4.7%). Alternatively, in submarkets where new supply was minimal, accounting for less than 1% of existing stock, Class A product saw notable rent growth of 2.6%. The other product classes in these lower-supply submarkets also logged price increases, but at more moderate rates.

Once-Strong Apartment Fundamentals in Portland Slump Among Nation’s Weakest

2026-03-04T06:52:55-06:00

Portland’s apartment market used to comfortably exceed U.S. averages for occupancy and rent growth. Lately, however, performance fundamentals have changed. It’s been almost 15 years since apartment occupancy in Portland was this low, and operators have recently turned to rent cuts. Known for its outdoor lifestyle with quality-of-life appeal, Portland has historically had a strong economy and a large population of educated young adults, which generally drives strong apartment demand. But the COVID-19 pandemic hit this West Coast market hard, and Portland has yet to recover all the job losses suffered during that economic downturn. Apartment developers are clearly counting on a turnaround, however, as new supply volumes are still hitting the market at a notable clip. At the beginning of 2024, RealPage forecasted markets that had great upside potential, and Portland was not one of them. In fact, Portland was deemed a market that had the potential to see challenges in 2024, alongside other West region metros Las Vegas, Los Angeles, San Francisco and Oakland. And thus far, that forecast has come to fruition. Occupancy Drops to a Recent Low, Inspiring Rent Cuts Apartment occupancy in Portland dropped below the 94% mark in November 2023 and has hovered there since, according to data from RealPage Market Analytics. The last time Portland occupancy dipped beneath 94% was back in early 2010. @include('site.elements.media.image', ['fileId' => 22783, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) This marks a contrast from how the market used to operate. Occupancy in Portland used to outperform the U.S. norm by a large margin. From 2010 through mid-2016, occupancy in Portland topped the U.S. rate by a comfortable 140 basis points (bps), on average. Toward the end of 2016, occupancy fell notably in Portland, wiping out that sizable lead. From that point on, occupancy in Portland ran right alongside U.S. averages, until recently, when the U.S. pul...

West Region Inventory Growth Trails U.S. Average

2025-01-22T03:13:45-06:00

While apartment supply volumes hit a new record in many spots throughout the nation recently, the West region has seen more muted growth. Leading up to the COVID-19 pandemic, the U.S. and the West region were essentially matched in inventory growth rates, with both averaging just under the 4% mark. This equivalence changed in 2022, when new apartment deliveries ramped up nationwide, especially across the Sun Belt. While the West region also saw an increase in inventory growth at that time, the pace of the hike was not as extreme. Annual inventory growth peaked at 5.9% in the U.S. in 1st quarter 2023, while the concurrent peak for the West region was a bit softer at 5.3%. Both growth rates have come down since. In the year-ending 1st quarter 2024, the U.S. increase was 4.9%, while the West region growth was more muted – but still solid by historical terms – at 4.5%.For more information on the state of apartment markets in the West region, including forecasts, watch the webcast Market Intelligence: Q2 West Coast Update.

April Pre-Lease Rate Runs Above Average, But Below All-Time High

2026-03-04T06:52:55-06:00

With such strong leasing activity in the early months of the student housing pre-lease season, a slight softening was expected toward the end of the spring semester. As expected, April readings showed that, while still historically strong, student housing pre-lease rates lost a bit of momentum to stand below last year’s all-time high. As of April, 72.3% of beds at the core 175 universities tracked by RealPage have been claimed for Fall 2024, compared to a rate of 73.7% one year ago, according to data from RealPage Market Analytics. The April 2024 rate still runs easily above pre-2023 rates, which hovered below 70%. @include('site.elements.media.image', ['fileId' => 22828, 'attributes' => ['border' => '0']]) The 6.7% bump in pre-leasing from March clocks in at half or less of the jumps seen in the early months of the pre-lease season. As expected, this indicates that performance in the back half of the pre-lease season (from March to August) will be more modest – though still favorable – compared to the first half (from September to February). Rent change in student housing product continued to soften from unsustainable highs recorded over the last couple years. Effective asking rents increased 5.1% year-over-year as of April, compared to annual growth of 5.8% recorded just one month ago in March. Properties across all distances were tightly clustered around the total average occupancy of 97.2% as of April. Among distances from campus, properties more than one mile from campus reported the strongest rent growth at 6.5% in April. Year-over-year effective rent growth softened across all distances from March to April, though remained easily more than double the long-term norm for annual rent growth closer to 2%. @include('site.elements.media.image', ['fileId' => 22827, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '552']]) As of April, 35 schools with sufficient sample within the RealPage 175 reported both stronger pre-lease occupancy and highe...

Major Themes in 1st Quarter Earnings Calls from Multifamily REITs

2025-01-22T03:13:45-06:00

As 1st quarter multifamily REIT earnings calls wind down, a few themes stood out among the larger players. In general, 1st quarter results met or outpaced expectations, and a few REITs increased elements of their full-year guidance as a result. Still, most REITs prefer to analyze performance during the prime leasing season (around May to September) before altering their forward performance projections. Job Growth Improving The first major theme mentioned at the beginning of nearly every earnings call was an improvement in demand drivers – notably, job growth. The National Association of Business Economics, or NABE, increased its job growth estimate to 1.6 million new jobs in 2024, up from the prior estimate of 700,000 jobs. Job quality was mentioned as a factor to consider, however, as many of these new jobs may be part-time or lower paying. Still, improved employment has contributed to additional upside on near-term REIT performance expectations. RealPage, too, has slightly strengthened its forecast after 1st quarter in light of economic factors. Renting Still More Affordable Than Buying REITs agreed on the continued tailwind to multifamily demand that renting remains more affordable than buying in many markets nationwide. Interest rates remain high for would-be homeowners, for-sale stock is limited and home ownership remains out of reach for many. AvalonBay Communities, Inc. (AVB) reported that in their markets, it is, “more than $2,000 per month more expensive to own versus rent a home.” Likewise, Essex Property Trust, Inc. (ESS) stated, “the median cost of owning a home is 2.5 times more expensive than renting in our markets.” Similarly, a 2023 study by The Center for Generational Kinetics for RealPage found that 73% of American renters say they cannot afford to buy a house in the area where they currently rent. Supporting this trend is the fact that move-outs due to home purchase were at historically low levels as of 1st...

Major Markets that Have Not Recovered from COVID Job Losses

2024-05-07T14:02:52-05:00

Despite deep losses during the early months of the pandemic, the nation at large has grown total employment approximately 4% since February 2020. However, not all markets have totally recovered all the job losses seen during that decline. Los Angeles total employment sits nearly 60,000 jobs below its pre-pandemic employment rate, marking the most severe decline nationwide and translating to a job base that is 1.3% below the pre-COVID norm. San Francisco claims the worst relative difference, with total employment 3.4% behind February 2020 levels, equating to nearly 45,000 fewer jobs in March 2024. Two other California markets – Oakland and San Jose – also made the list of markets that haven’t recovered from pandemic-era job losses. Notably missing from this list are any Sun Belt markets, with the slight exception of Memphis, where March employment was just 1,400 jobs below its pre-pandemic total, according to the latest metro-level data from the Bureau of Labor Statistics.

Inventory Growth Sizable Among Carolinas Markets

2025-01-22T03:13:45-06:00

Several markets across North and South Carolina have seen remarkable inventory growth in the past five years. Wilmington was one of the nation’s best performers, with an inventory increase of around 30% since 2019. (All that translated to a pretty significant increase in renter households, too.) Among the nation’s largest 150 apartment markets, only two others outside of the Carolinas saw more intense growth – Huntsville, AL and Boise City, ID, according to data from RealPage Market Analytics. Carolinas markets with five-year growth rates around 15% to 25% include Charleston, Charlotte, Myrtle Beach, Raleigh/Durham, Greenville/Spartanburg and Asheville. Helping inspire new apartment development activity, population growth has been significant recently in several of these markets, and demand volumes across the Carolinas have been some of the best nationwide. For more information on the state of apartment markets in the Carolinas, including forecasts, watch the webcast Market Intelligence: Q2 Carolinas Update.

U.S. Job Gains Dip to Six-Month Low in April

2026-03-04T06:52:55-06:00

The U.S. labor market has remained historically tight over the past year, defying economists’ expectations. But in April, the U.S. economy added fewer jobs than expected while the unemployment rate rose unexpectedly, a sign that high interest rates and elevated inflation may be starting to impact the labor market. The cooling labor market may prompt the Federal Reserve to cut interest rates in the coming months which have remained at 20-year highs. @include('site.elements.media.image', ['fileId' => 22652, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Employers added roughly 175,000 workers to payrolls in April 2024, according to a survey of businesses by the Bureau of Labor Statistics. While that was a solid gain, it came in well below the 315,000 jobs gained in March (which was revised up) and was the smallest one-month gain since October 2023. In addition, recent job gains came in well below what economists were forecasting (+235,000 to +240,000 jobs). Still, the U.S. economy has now added jobs for 40 consecutive months, the fifth-longest period of job base expansion on record dating back to 1939. Of note: The job count for February was revised down while the March job number was revised up. Downward revisions to February 2024 data showed 34,000 fewer jobs were added than previously reported, down from 270,000 to 236,000 positions. The March 2024 job growth number was revised up, increasing by 12,000 jobs to a total of 315,000 positions. With these revisions, employment gains in February and March combined were 22,000 jobs lower than previously reported. @include('site.elements.media.image', ['fileId' => 22651, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Job gains in April were below the monthly average of around 242,000 jobs added over the previous 12 months and fell below pre-pandemic norms. From 2015 to 2019, the U.S. economy added an average of roughly 190,000 jobs each month. On an annual basis,...

Apartment Occupancy Ticks Up for the First Time Since Early 2022

2026-03-04T06:52:55-06:00

While apartment occupancy has been falling nationwide since early 2022, new data from RealPage indicates the industry might be at an inflection point in which occupancy could be stabilizing. For the first time since February 2022, the national average for apartment occupancy ticked up month-over-month to stand at 94.2% in April 2024, according to data from RealPage Market Analytics. That rate is a mild 10 basis points (bps) above March’s reading. That trend was seen nationwide as all four apartment regions – Northeast, Midwest, South and West – recorded occupancy strengthening by 10 bps from March to April. April’s positive occupancy increase highlights strengthening apartment demand is carrying forward from the highest-ever 1st quarter tally – which saw more than 100,000 units absorbed on net. It also suggests demand trends are returning to more normal seasonal patterns whereby the late spring/early summer months see the strongest demand. @include('site.elements.media.image', ['fileId' => 22643, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '1141']]) Apartment Rent Change Remains Tepid Apartment rent change, meanwhile, remained restrained under the pressure of new supply. Effective asking rents for professionally managed apartments ticked up just 0.2% month-over-month, keeping the year-over-year figure subdued to just 0.1% growth, with change measured on a same-store basis. That annual rent growth figure has hovered near zero since August 2023 and RealPage forecasts much of the same throughout the remainder of 2024. Improved demand and stabilizing occupancy – yet tepid-at-best rent growth – highlights the current imbalance of supply and demand across the nation. That is, demand has been stronger than usual but it’s being met with the highest new supply total since 1986. As such, both rents and occupancy showed increases due to seasonality – but their rate of increase remains below historically normal levels for this time of year. Notably,...

RealPage Economy Express Episode 26

2025-01-22T03:13:45-06:00

Episode 26: Will we see a rate cut in 2024? Existing-home sales declined by 4.3% in March, according to the National Association of Realtors. The median existing-home price increased for a ninth consecutive month, hitting the highest price ever for the month of March at $393,500. Construction spending dipped by 0.2% in March but remained 9.6% above March 2023 levels, reports the U.S. Census Bureau. Private residential construction fell by 0.7%, while public construction rose by 0.8%, led by increases in educational and highway projects. The U.S. Gross Domestic Product grew at a 1.6% annual rate as of 1st quarter, decelerating from the 3.4% increase seen in late 2023. Consumer spending growth slowed, exports fell and federal spending contracted. Payroll company ADP reported 192,000 private sector jobs added in April, with Leisure/Hospitality and Construction industries leading gains. Annual pay growth cooled slightly to 5%. The Commerce Department’s personal consumption expenditures price index rose by 0.3% in March and 2.7% over the last year. Excluding food and energy, core PCE inflation was at 2.8% annually. The Federal Reserve maintained interest rates, citing a lack of progress on bringing inflation down. Rates are likely to remain elevated for some time, with the possibility of one rate cut in the final quarter of 2024. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

Apartment Occupancy Shines in Lawrence, Amid National Softening

2025-01-22T03:13:45-06:00

Nationwide, apartment occupancy has softened considerably since early 2022 – but not in the small Midwest market of Lawrence, KS. In Lawrence, which sits about 40 miles west of Kansas City and has about 13,000 existing apartment units, occupancy ticked above the national norm in late 2021 and has been consistently rising nearly every month since. As of March, apartment occupancy in Lawrence stood at 98.1%, a top five performance among U.S. markets with 10,000 units or more, according to data from RealPage Market Analytics. The nation’s top occupancy markets as of March also included Youngstown-Warren-Boardman, OH-PA (99.1%), Appleton, WI (98.8%), State College, PA (98.3%) and Green Bay, WI (98.1%). The national norm for occupancy clocked in at 94.1% in March – a decade low for the country. Meanwhile, apartment supply has been reserved in Lawrence for several years running. No new supply has delivered in Lawrence since mid-2022 and the market currently has just 130 units under construction.

Comparing 1st Quarter Rent Growth to Normal Seasonal Behavior

2026-03-04T06:52:55-06:00

With U.S. apartment rent growth below typical seasonal trends in 1st quarter, only a handful of markets across the nation logged price increases ahead of seasonal norms during the first three months of 2024. Effective asking rents in the U.S. overall fell by 0.1% in the January to March time period. That was a notable difference from the pre-COVID norm, which was growth of 0.6% during 1st quarter, according to data from RealPage Market Analytics. That was measured during the 2010 to 2019 time frame, when there was a distinct pattern of growth during 1st quarter. The pandemic triggered a time when seasonal trends disappeared, as rents surged. More recently, however, we’ve seen a return to a more normal cadence. @include('site.elements.media.image', ['fileId' => 22557, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) While the 1st quarter 2024 rent performance fell below pre-pandemic trends, that’s easily explained. With new supply levels hitting a record high recently, and even more significant development underway, apartment operators have been cautious, especially in markets most impacted by elevated construction activity. Among major markets with 1st quarter rent positioning trailing pre-COVID trends most severely, four are Texas markets that have seen record supply volumes soar past solid apartment demand. Austin and Dallas in particular have both recorded nation-leading apartment demand in recent months, but the amount of new supply that has hit these markets has been astounding, far outpacing those numbers. @include('site.elements.media.image', ['fileId' => 22556, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '643']]) Outside of Texas, other big markets that have logged significant apartment deliveries recently include Charlotte, Raleigh/Durham and Phoenix, where completions swelled each market by at least 17% in the past five years. Markets with 1st quarter rent growth in-line with pre-pandemic seasonal trends...

Small Cities Near Major Markets Deliver Record Apartment Deliveries

2025-01-22T03:13:45-06:00

Apartment supply has been prolific of late, no matter how you look at the data. Among the 150 largest apartment markets tracked by RealPage, 28% (42 markets) reported their highest ever annual supply volumes in 1st quarter 2024. Among those locales are both major and minor markets spanning the nation, and several of these record supply markets have something in common. That is, they’re proximate – and, in many cases, within commuting distance – to a major market. As workers go into their offices less frequently or not at all, smaller locales nearby bustling cities increase in renter popularity. In fact, several medium or small metros that delivered all-time high apartment supply in the last year are within an hour or so drive of much larger markets. For example, developers delivered over 3,200 units in the year-ending 1st quarter in the small beach town of Port St. Lucie/Sebastian/Vero Beach, according to data from RealPage Market Analytics. That’s easily an all-time high for this small town that sits just north of the South Florida trio of markets (West Palm Beach, Fort Lauderdale and Miami). Manchester/Nashua/Concord and Worcester, both about 50 miles from Boston, also logged their highest-ever supply loads over the last year.

Checking in on the Dallas Apartment Market Under Record Supply

2026-03-04T06:52:55-06:00

Strong demand drivers and ever-flowing job additions send a constant flow of renters to Dallas and, as a result, developers have been building more apartments in this market than any other nationwide over the last decade. And with a record amount of construction still underway, Dallas isn’t quite done with the rapid transformation of its apartment market. Dallas is the nation’s fifth largest apartment market with over 696,000 existing units as of 1st quarter, according to data from RealPage Market Analytics. The only U.S. markets with more stock are New York, Los Angeles, Houston and Chicago. No Market Has Added More Units Than Dallas Since 2014 Over the past 10 years, Dallas has added more apartments to its existing base than any other market nationwide. Over 181,000 units have come online since 2014, increasing the apartment base by a stunning 35.3%. While there were several other markets nationwide that saw more growth on a percentage basis, all those apartment markets were less than half the size of Dallas. In fact, the only market that comes close on a relative growth basis is fellow Texas metro Austin, where the existing apartment base is less than half the size of Dallas at more like 300,000 existing units. @include('site.elements.media.image', ['fileId' => 22439, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) And apartment developers are not done with Dallas yet. In fact, Dallas just experienced an all-time high in annual deliveries in the RealPage data set dating back to 1992. Over 23,100 units were completed in Dallas in the year-ending 1st quarter, the second highest showing nationwide after Houston. In Dallas, that marked the first time on record annual completions busted the 20,000-unit mark. @include('site.elements.media.image', ['fileId' => 22438, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) It took over 30 years of data for Dallas to bust the 20,000-unit mark for annual supply – but it co...

Nation-Leading Apartment Supply Coming Online in Florida

2025-04-21T16:34:33-05:00

Florida is one of the fastest growing apartment regions nationwide. Roughly 66,000 new apartment units delivered in the Sunshine State in the year-ending 1st quarter 2024. That total accounted for more than 13% of all U.S. supply in that time frame. In fact, among states, only Texas gained more apartment supply last year. Within Florida, deliveries grew the local housing stock by nearly 4%, the third-fastest rate of expansion among any region classified by RealPage. The Carolinas expanded by 4.7%, the biggest expansion nationwide, followed by the Mountains/Desert region, which grew by 4%. Within Florida, Orlando was the state’s supply leader, adding over 12,900 units in the year-ending 1st quarter. Tampa and Jacksonville logged completions of over 8,000 units each in the past year, while Miami was close to that with over 7,800 units added.

Multifamily Starts Plunge in March, Indicating When Supply Wave Could Taper

2026-03-04T06:52:55-06:00

After jumping in February, multifamily starts dropped to the lowest level since the first month of the global pandemic. The seasonally adjusted annual rate (SAAR) for multifamily starts plummeted 20.8% month-over-month, according to the latest data release from the U. S. Census Bureau. March’s annual rate of 290,000 units was down 20.8% from February’s revised rate of 366,000 units and 43.7% below the year-ago rate. Multifamily permitting was unchanged from last month but the SAAR of 433,000 units permitted was 22.1% less than last March. @include('site.elements.media.image', ['fileId' => 22424, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Meanwhile, single-family starts were down 12.4% from last month to 1.022 million units, but that was 21.2% greater than the year before. The annualized rate for single-family permitting also declined for the month (-5.7%) but was 17.4% higher than last March. Completions of multifamily units were down 19.9% from February to 502,000 units, which marked a 4.6% increase from last March. The number of multifamily units under construction dipped a minor 1.8% from February to stand at 940,000 units, a slight 1.6% decrease from last March. Additionally, the number of multifamily units authorized but not started was up just 0.8% to 127,000 units in March, a 17.5% decrease from one year ago. Single-family completions were down 10.5% for the month and 8.5% for the year to 947,000 units. The number of single-family units under construction was virtually unchanged at 689,000 units (up 0.3%) but that was 2.7% less than one year ago. Single-family units authorized but not started was unchanged from February at 141,000 units, a 6% increase from last March. Together with the small two-to-four-unit figures, total residential permitting fell 4.3% from last month but was up 1.5% for the year to 1.458 million units. March’s significant decreases in annual multifamily and single-family starts brought the SAAR of tot...

Gateway Markets Losing the Most Residents

2025-01-22T03:13:45-06:00

Some of the nation’s big gateway markets suffered notable population declines in the past few years. While some small southern markets logged worse setbacks on a relative basis, San Francisco saw more loss than any of the largest 50 markets nationwide, according to the latest estimates from the U.S. Census Bureau that run through 2023. Combined with nearby Oakland in the Census definitions, San Francisco suffered a population decline of 3.7% between 2020 and 2023. Other gateway markets Los Angeles, San Jose and New York suffered declines between 2.5% and 2.9% during that time frame. The rest of the top 50 markets to see population loss of 1% or more since 2020 were mostly located in the Midwest. Looking at gateway markets where the loss was not quite as bad, Boston’s population declined just 0.3% between 2020 and 2023. On the other hand, Washington, DC’s resident base increased by 0.7% (very close to the U.S. average growth pace of 1%), while Seattle’s population was up by 0.4% in that period.

New York Returns as Top Job Gain Market

2026-03-04T06:52:55-06:00

After falling out of the #1 spot last October, the New York-White Plains metro division is back to ranking at the top for employment gains nationwide in March. According to data released by the Bureau of Labor Statistics (BLS), New York gained 69,200 jobs in the year-ending March, up from a revised 55,000 jobs in February (initially reported as 47,900 jobs gained). Nine of February’s top 10 job creation markets returned in March with most markets remaining close to their previous positions. Last month’s top three – Houston, Phoenix and Dallas – were each bumped down one spot in March after New York. Houston’s 67,800 jobs gained was still pretty strong but down more than 10,000 jobs from February’s total. At #3, Phoenix gained 53,600 jobs for the year, close to their level last month. @include('site.elements.media.image', ['fileId' => 22305, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '613']]) Dallas came in at #4, gaining 44,400 jobs for the year, about 6,000 fewer than last month and one of the lowest gains for Big D in a long time. Miami ranked #5, moving up two spots from last month with 38,400 jobs gained, while Las Vegas slipped one spot to #6 with 36,800 jobs gained in the past year. Sacramento also moved up two spots to #7 with 32,600 jobs gained, 2,600 more than in February. Philadelphia retained the #8 spot with a gain of 31,500 jobs, close to last month’s level and Anaheim jumped onto the top 10 list (replacing Austin) at #9 with 31,000 jobs gained. Tampa was the only other top 10 market to remain in place at #10 with 30,300 jobs gained in the past 12 months. The total number of jobs gained for the year-ending March for the top 10 markets was down only about 13,000 jobs from their collective total last month. The next 10 markets (#11-#20) saw their combined annual jobs gains increase by about 5,000 jobs. For the first fifth time since last October, none of the top 10 markets exceeded 100,000 jobs gained for the year while only t...

Lease-Up Demand is Solid, But it Doesn’t Feel Like It

2026-03-04T06:52:55-06:00

Record volumes of new apartment supply are giving the average U.S. renter more options from which to choose. But demand trends remain favorable in lease-up properties yet to hit stabilization. Among these assets going through the initial lease-up phase, about 40,000 units were absorbed in 1st quarter 2024. That number is up about 20% more than 1st quarter 2023 volumes. @include('site.elements.media.image', ['fileId' => 22270, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Despite this impressive data, many operators report that lease-up demand doesn’t feel strong. And they aren’t wrong. There is a disconnect between these market-level figures and property-level figures. As supply levels continue to rise, so has competition. Thus, the amount of leases filtering to each property is below what you’d expect. The average lease-up community is executing about 10 to 11 leases per month, which is down 10% from last year, despite a 20% increase in overall absorption. @include('site.elements.media.image', ['fileId' => 22271, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) This disconnect is the reason we are seeing weaker-than-average rent growth, especially in lease-up properties where the pressure is on to fill up as quickly as possible. While lease-up concessions haven’t gone up all that much recently, asking rents have been cut, causing a shrinking delta between Class A rents and lease-up rents. Because of that, there’s only two months worth of concessions difference between a Class A asset and a lease-up property. @include('site.elements.media.image', ['fileId' => 22272, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) As lease-up properties become more competitive, it’s not a huge leap to imagine someone choosing a lease-up unit over their current Class A property.

Notable Population Growth in Small Southeast Towns

2025-07-07T10:45:48-05:00

Small Southeastern towns dominated the list of the nation’s biggest population increases last year. The U.S. overall grew its population by an average of 0.5% in 2023, according to the latest estimates from the U.S. Census Bureau. But a handful of small markets logged significantly more growth, and most of them are affordable retirement destinations or beach spots in the Southeast. Beach towns started to outperform back in 2021, when the work-from-home trend allowed workers to migrate to smaller, more affordable locales with lifestyle appeal. Meanwhile, retirees have long been drawn to Florida, with affordable small towns and forgiving weather. And this trend has increased as the Baby Boomer generation has aged. Three retirement towns close to Orlando were some of the nation’s population growth leaders in 2023. Wildwood-The Villages logged an increase of 4.7%, while Lakeland-Winter Haven grew by 3.8% and Ocala swelled by 3.4%. Beach towns Myrtle Beach, Port St. Lucie, Wilmington and Daphne logged population growth between 2.8% and 3.7% in 2023. The only markets with population growth of 2.8% or more that don’t identify as retirement villages or beach towns were Hinesville, GA, Midland, TX and Spartanburg, SC.

RealPage Economy Express Episode 25

2025-01-22T03:13:45-06:00

Episode 25: Are we getting any closer to rate cuts? U.S. payroll employment rose by 303,000 positions in March, exceeding the 12-month average gain, according to the Bureau of Labor Statistics (BLS). The Consumer Price Index (CPI) increased by 0.4% in March, contributing to a 3.5% rise over the past 12 months, per the BLS. Primary contributors to the monthly increase were the index for shelter and the index for gasoline. The National Association of Realtors reports existing-home sales declined by 4.3% in March. Building permits and housing starts declined in March, indicating a mixed picture in the construction sector. Federal Reserve Chair Jerome Powell reiterated a cautious approach to rate cuts, emphasizing the need for more progress on inflation before consideration. The Fed’s target inflation rate is 2%. Inflation was at 3.5% in March, according to the BLS. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

Pricey Markets on the West Coast Stalling Pandemic Recovery

2026-03-04T06:52:55-06:00

The major apartment markets in the West region of the U.S. are recovering nicely from recent demand lows – if you don’t count some of the big coastal markets. Overall, the West region of the U.S. logged apartment demand for roughly 69,000 units in the year-ending 1st quarter, according to data from RealPage Market Analytics. By comparison, that was less than half of what the South region logged for demand in that time frame. But when you break down Western demand, a pattern emerges. The large, pricey coastal markets have struggled to maintain apartment demand in recent years, hindered by population losses and stagnant job growth. Meanwhile, the West region markets further from the coast – namely, the ones with more affordable monthly rents – have enjoyed the return of solid apartment demand volumes since the pandemic downturn, fueled by population increases and solid employment markers. @include('site.elements.media.image', ['fileId' => 22214, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '721']]) Phoenix captured some of the nation’s strongest apartment demand in the past year, with about 14,800 units absorbed in the year-ending 1st quarter. Only Houston and Dallas logged more demand across the U.S. in the same time. Phoenix is also one of the most affordable West region markets, with effective rents of $1,577 as of March. Only Las Vegas and Salt Lake City command more affordable monthly prices in the West region. Two other inland West region markets – Denver and Salt Lake City – logged solid demand volumes of more than 7,000 units in the past year. Effective rents in those markets are also more moderate at about $1,550 (Salt Lake) to $1,900 (Denver). By comparison, the national norm for monthly rent clocked in around $1,800 as of 1st quarter. Seattle was the only other West region market to log demand of more than 6,000 units in the past year. Monthly rents there are right in line with the West region average at about $2,200. On the other...

Apartment Occupancy Improves Notably in Small Georgia Town

2025-01-22T03:13:45-06:00

Apartment occupancy has improved notably in the small market of Columbus. Situated right on the Chattahoochee River, the dividing line between Georgia and Alabama, Columbus is Georgia’s second-most populated city but has only about 24,800 units of existing apartment stock. As apartment occupancy nationwide has faded over the course of the past year, Columbus has made notable progress. March 2024 occupancy in Columbus stood at 95.4%, ahead of the year-earlier rate by 90 basis points (bps), according to data from RealPage Market Analytics. After Stockton/Lodi, CA, Columbus ranked #2 nationwide for occupancy growth in the past year. Corpus Christi, TX was the only other South region market among the largest 150 to see annual occupancy growth of more than 50 bps. Meanwhile, in the U.S. overall, occupancy faded to 94.1% in March, after falling 60 bps for the year.

Big Apartment Demand in Texas Outdone by Heavy Supply

2026-03-04T06:52:55-06:00

While apartment demand has been strong across the major Texas metros, Texas-focused operators are feeling the pressure of supply. Austin, Dallas/Fort Worth and Houston all rank in the top five markets in the country for annual absorption. But strong demand at a market level unfortunately doesn't scale on a 1:1 basis down to the property level. As of March, a typical lease-up property saw move-ins into roughly a dozen units. In Dallas, it was actually 15 units per property per month, as 1,500+ lease-up units were absorbed in March alone. That was a vast improvement from the 700 units that were typical a year ago in March 2023. @include('site.elements.media.image', ['fileId' => 22161, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) The difference today is supply. And lots of it. Lease-up properties total some 33,700 units in Dallas alone as of March. That goes up to 47,000 units if you add in Fort Worth. And that means a lot of competition for lease-ups to fill up as quick as possible. In Austin, for example, the average lease-up concession is approaching 40 days free. But there are instances of nine to 11 weeks discounted right now. That's a lot of downward pressure on existing Class A units. Dallas' challenge for now seems to be an erosion of the Class B renter base into Class A properties. It’s not typical for Class A occupancy to lead the local market. But Class A occupancy in Dallas has been roughly 50 to 100 basis points higher than both Class B and Class C stock for the past six months. @include('site.elements.media.image', ['fileId' => 22162, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) In Texas overall, while demand has been strong, so has supply. The difference is demand builds like a tidal wave – it's the byproduct of economic growth and population growth. Supply, however, crests and troughs in shorter cycles. @include('site.elements.media.image', ['fileId' => 22163, 'attributes' => ['border' =>...

Urban Cores No Longer Grossly Underperforming Suburban Counterparts

2026-03-26T11:05:01-05:00

In a typical, pre-pandemic world, urban core submarkets generally underperformed their suburban counterparts by a small margin. Urban core occupancy typically fell less than 100 basis points (bps) below suburban occupancy. Likewise, annual effective rent change in urban cores underperformed suburban counterparts by about as much. Then came the pandemic. Arguably no apartment niche was hit harder than downtowns, especially in gateway markets. Residents fled, taking up residence in cheaper, bigger, more suburban units where they could easily work from home. Most urban core operators had turned to rent cuts by 2nd quarter 2020 and continued cutting rents for at least another year. Four years later, urban core submarkets are once again performing approximately in line with pre-pandemic patterns. That is, urban cores still underperform suburban counterparts – but about at the margin that was typical before early 2020. Among the 50 largest apartment markets, RealPage tracks nearly 700 individual submarkets. Each of the top 50 markets has at least one urban core submarket, a proxy for that market’s downtown or central business district. A few markets have multiple urban submarkets (such as Washington, DC, San Francisco or Atlanta). Most markets’ submarkets tend to be overwhelmingly suburban, meaning that the suburban submarket aggregate is quite a bit more diverse and inclusive than the relatively narrow set of urban cores. @include('site.elements.media.image', ['fileId' => 22054, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) As of March, average annual rent change in urban cores clocked in at -0.7%. That marked an aggregate of over 50 urban cores within RealPage Market Analytics’ 50 largest apartment markets. Some select urban submarkets were growing rents at a strong pace in March, such as Milwaukee’s Downtown/Shorewood or Central Cleveland, but most were posting rent cuts, including the deepest declines in Downtown Atlanta and Central N...

U.S. Marks Largest Volume of Quarterly Apartment Supply in History

2025-01-22T03:13:45-06:00

The U.S. apartment market just delivered the biggest volume of new supply its ever seen in a single quarter. Completions volumes broke past the 100,000-unit mark in 2nd quarter 2023 for the first time since RealPage Market Analytics began tracking the market in the early 1990s. Since then, delivery volumes have increased nearly every quarter. In the first three months of 2024, roughly 135,600 units wrapped up construction, the biggest quarterly volume the U.S. has ever received. More than that, this volume nearly doubled the 10-year average of about 82,600 units. And this decade has been a significant one for apartment construction activity. In the decade before this one (2004-2014), quarterly completions averaged just 36,200 units. In 1st quarter 2024, the biggest block of new apartments came online in the South region of the U.S., with over 79,200 units completed. The West received about 29,200 units. In both, the 1st quarter completion volume is the biggest the region has seen ever. Meanwhile, more mild deliveries were seen in the Midwest (15,800 units) and Northeast (11,400 units). In both of those latter regions, 1st quarter completions are a tick below the record-high showings from 2023’s 4th quarter.

Apartment Markets with the Worst Supply/Demand Imbalances

2025-01-22T03:13:45-06:00

The first three months of 2024 captured very strong apartment demand across the U.S. and most major markets. Still, sky-high supply continued to mute performance across the board. Among the nation’s largest apartment markets, nine posted particularly steep imbalances of supply and demand, according to data from RealPage Market Analytics. In New York – the nation’s largest apartment market by a wide margin – quarterly apartment supply of nearly 2,500 units met concurrent net move-outs for over 2,000 units, resulting in an imbalance of nearly 4,500 units. Los Angeles and San Diego also posted net move-outs in 1st quarter 2024. Newark posted mild demand in 1st quarter, while concurrent new supply topped 2,200 units. Meanwhile, nation-leading demand was found in three Texas markets – Dallas, Austin and Houston. Still, strong demand failed to meet even bigger quarterly supply in the Lone Star State. Minneapolis and Fort Worth, meanwhile, posted respectable quarterly absorption that still failed to put a dent in occupancy, thanks to high supply.

Putting 1st Quarter 2024 Apartment Demand in Perspective

2026-03-04T06:52:55-06:00

Quarterly apartment demand jumped meaningfully in the first three months of 2024, another indication of a return to seasonal market norms for the U.S. apartment market. Quarterly absorption went from just over 49,000 units in 2023’s 4th quarter to more than 103,800 units in 2024’s 1st quarter, according to data from RealPage Market Analytics. If you don’t count the last three years of unprecedented behavior triggered by the COVID-19 pandemic, it’s perfectly typical for absorption to get stronger in 1st quarter after the seasonal slump in 4th quarter. But in the early months of 2024, apartment demand more than doubled. On average, over the course of the past decade (not including the haywire years of 2021-2023), 1st quarter tended to achieve demand for about 52,231 units. That was 39,970 units more than 4th quarter’s average volume. From that perspective, it’s clear the jump was quite a bit above average in 2024, as 1st quarter demand was twice the long-term volume and was 54,663 units ahead of 2023’s 4th quarter showing. @include('site.elements.media.image', ['fileId' => 21999, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Historically, 1st quarter demand isn’t even the time when most of the year’s absorption generally takes place. Over the past decade, 1st quarter has captured only 4% of the year’s total demand volume. Given that demand in the early months of 2024 was well ahead of the decade average, we might be in for a banner year for absorption. Quarterly apartment demand has been positive for five consecutive quarters now, which is quite the comeback after three quarters of deep net move-outs in the last three quarters of 2022. And absorption in 1st quarter was not that far behind historically high apartment supply. Concurrent completion volumes have steadily increased, as well. Quarterly deliveries broke the 100,000-unit mark in 2nd quarter 2023, for the first time since RealPage began tracking the market in the early 1990s....

As Back-Half of Pre-Lease Season Begins, Occupancy Stays Strong

2026-03-04T06:52:54-06:00

Student housing pre-leasing in March essentially matched the year-ago rate, which marked an all-time high in the RealPage data set. As of March, 65.6% of beds at the core 175 universities tracked by RealPage have been claimed for Fall 2024, compared to nearly the same rate in the year-ago readings (65.7%), according to data from RealPage Market Analytics. Still, the pre-lease bump from February to March of about 8.4% marks a contrast from monthly climbs north of 11% seen earlier in the season. This indicates that performance in the back half of the pre-lease season (from March to August) will be more modest – though still favorable – compared to the first half (from September to February), as expected. As student housing momentum has gotten stronger in the first half of the pre-lease season in recent years, it leaves milder gains available in the second half. @include('site.elements.media.image', ['fileId' => 21976, 'attributes' => ['border' => '0']]) Properties across all distances reported strong pre-lease rates that were tightly clustered around the RealPage 175 average as of March. Rent change, meanwhile, varied more with the highest reading at properties within a half mile to one mile of campus (7.3%), followed by slightly lower readings at properties more than one mile from campus (6.3%) and within a half mile of campus (5.4%). On average, effective asking rents have increased 5.8% year-over-year as of March. @include('site.elements.media.image', ['fileId' => 21978, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '575']]) At a university level, several schools continue to report ultra-strong pre-lease readings, including Ole Miss (in a welcomed turn of events from its recent past), Tennessee, Appalachian State, Purdue, Virginia Tech and James Madison. Meanwhile, two University of California schools – Sacramento and Fresno – reported pre-lease readings below 40% as of March. Ole Miss and Tennessee also reported the strongest annual rent...

Denver Sees a Surge in Apartment Construction

2025-01-22T03:13:45-06:00

Like many markets around the country, the Denver apartment market has seen new supply elevate recently, approaching an unprecedented surge in deliveries that the Mile High City has never experienced before. Completions totaled 10,908 units in the year-ending 1st quarter 2024, according to data from RealPage Market Analytics. That was close to the previous peak of almost 11,500 units in 2018. RealPage calculates that 22,015 units will be completed in the next four quarters, more than twice the current level. However, Denver has a fairly tight housing market with a housing units-to-households ratio of 1.05 (similar to Dallas) compared to a national ratio of 1.11. New supply in the past year had been concentrated in the in Northeast Denver, Five Points/Capitol Hill/Cherry Creek and South Denver/Inglewood submarkets. In the next year, Northeast Denver, Downtown/Highlands/Lincoln Park, Broomfield and Five Points/Capitol Hill/Cherry Creek will see the most new apartment supply.

U.S. Labor Market Remains Historically Strong

2026-03-04T06:52:54-06:00

The U.S. labor market has remained resilient despite high interest rates and stubbornly high inflation. In March, the U.S. continued to add jobs at a solid pace, exceeding expectations. While the unemployment rate edged down, it was what economists were forecasting. @include('site.elements.media.image', ['fileId' => 21907, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Employers added roughly 303,000 workers to payrolls in March 2024, according to a survey of businesses by the Bureau of Labor Statistics (BLS). That was an improvement over the 270,000 jobs gained in February (which was revised down), and the biggest one-month gain since May 2023. In addition, recent job gains came in well above what economists were forecasting (+200,000 jobs to +215,000 jobs). The U.S. economy has now added jobs for 39 consecutive months, the fifth-longest period of job base expansion on record (back to 1939). Of note: The job count for January was revised up while the February job number was revised down. Upward revisions to January 2024 data showed 27,000 more jobs were added than previously reported, up from 229,000 to 256,000 positions. The February 2024 job growth number was revised down, decreasing by 5,000 jobs to a total of 270,000 positions. With these revisions, employment gains in January and February combined were 22,000 jobs higher than previously reported. @include('site.elements.media.image', ['fileId' => 21906, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Recent job gains were above the monthly average of around 251,000 jobs added throughout calendar 2023 and were ahead of pre-pandemic norms. From 2015 to 2019, the U.S. economy added an average of roughly 190,000 jobs each month. On an annual basis, the nation gained more than 2.9 million jobs in March 2024. That was the strongest annual gain since December 2023 and above the pre-pandemic average of around 2.4 million jobs added annually from 2015 to 2019....

Midwest Rent Growth Outperformed U.S. Norm in 2023

2025-04-21T16:35:33-05:00

Midwest rent growth outpaced the national average in 2023, for only the fourth time in almost two decades. The typically stable apartment industry in the Midwest tends to shine in moments when the U.S. overall does not. That was the case in 2023, as the U.S. logged annual rent growth at modest 0.3% while the Midwest saw more success with price increases of more than 2%. Over the past 17 years, there have only been three other times when Midwest rent growth outpaced the U.S. average, and in all of those cases, the U.S. apartment market was either experiencing a down year or was right on the cusp of one. During these down years the Midwest averaged a performance premium of about 1.4% over the U.S norm.

RealPage Slightly Strengthens Forecast in Most Apartment Markets Based on Economic Indicators

2026-03-04T06:52:54-06:00

As 2024’s 1st quarter comes into focus, RealPage has updated its forecast to reflect strengthening economic markers that influence the multifamily industry. Our most recent projections for annual effective rent change in calendar 2024 suggest that within the nation’s 50 largest apartment markets, 12% are expected to witness rent increases of 3% or higher. The bulk of major markets are forecasted to experience growth between 2% and 2.9%. Meanwhile, 38% or markets are predicted to see rent growth ranging from 1% to 1.9%. The smallest portion of markets, 8%, will likely encounter growth below 1%. These forecasts are based on the latest economic indicators and their expected performance in the near term. @include('site.elements.media.image', ['fileId' => 21773, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '940']]) Following a robust addition of over 637,000 jobs in 4th quarter 2023, the U.S. economy maintained its momentum by adding more than 500,000 jobs (seasonally adjusted) in the initial two months of 2024, showcasing the labor market's continued strength. During 4th quarter 2023, Los Angeles led in job creation, adding nearly 49,000 positions, with New York and Houston following closely behind, contributing 38,500 and 20,000 jobs, respectively. In contrast, the early months of 2024 saw Houston and Austin at the forefront of job growth, adding 16,600 and 10,700 jobs, with Boston, Raleigh/Durham, and Chicago also making significant contributions. This shift has led us to revise our employment forecasts upward for many markets, particularly highlighting Austin, Las Vegas, Houston, Orlando and Phoenix as key players among the larger U.S. markets. Despite higher-than-target inflation, we anticipate that the Federal Reserve may start reducing interest rates in the latter half of the year, although the timing and magnitude of cuts could be influenced by continued positive surprises in the job market. After a 3.2% growth in GDP in the last quarter...

RealPage Economy Express Episode 24

2026-01-20T18:17:51-06:00

Episode 24: Is the Fed still considering rate cuts? Roughly 184,000 jobs were added to the private sector in March, according to the latest ADP National Employment Report. And annual pay increased by 5.1% year-over-year. The Bureau of Economic Analysis reports personal income and personal consumption expenditures price index increased by 0.3% in February. Spending, especially on services, indicates a vibrant consumer sector. The personal saving rate was at 3.6%, and balancing spending and saving remains a concern. Pending home sales increased by 1.6% in February, showcasing a slow and steady recovery pace. Construction spending dipped by 0.3% in February but increased by 10.7% compared to the previous year, indicating a nuanced recovery, especially in residential construction. The Conference Board's Leading Economic Index rose by 0.1% in February, driven by factors like stock prices and residential construction, suggesting a cautiously optimistic economic outlook. Federal Reserve Chairman Jerome Powell emphasized the need for more evidence of easing inflation before considering rate cuts, indicating a cautious approach. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

High Apartment Supply Still Muting Performance Fundamentals

2026-03-04T06:52:54-06:00

Despite apartment demand recovering to stand above normal levels in 1st quarter 2024, even heavier supply continued to weigh down rent and occupancy figures. In the first three months of 2024, the U.S. absorbed 103,826 apartment units on net, according to data from RealPage Market Analytics. That strong quarterly tally brought annual demand to stand at 317,241 units absorbed in the year-ending 1st quarter 2024. That rate registered about 20% higher than a typical annual absorption rate from the 2010s decade. Fueling this demand strength is a confluence of factors, including persistent wage growth (which has now outpaced rent growth for 16 straight months), solid job growth, demographic tailwinds and arguably the lowest level of move-outs from apartment units and into single-family homes since the Great Financial Crisis. Still, even higher-than-average demand failed to keep pace with nearly unprecedented supply that delivered concurrently. In the first three months of 2024, there were 135,652 apartment units completed nationwide. In total, the U.S. delivered 479,367 new multifamily units in the year-ending 1st quarter 2024, representing a 10% increase from the prior quarter. New apartment supply continues to be the primary influence on national performance. We’re sitting at the highest annual supply figure dating back to 1986 when approximately 550,000 new units were delivered. Though it’s important to note that today’s relative expansion rate of 2.5% remains comfortably below the 1986 expansion rate of 3%. Also of note, the difference between supply and demand narrowed in 1st quarter to its lowest delta since mid-2022. The mismatch between supply and demand shrank to approximately 160,000 units – still a historically high figure, but much lower than the over 530,000-unit delta seen one year ago. @include('site.elements.media.image', ['fileId' => 21790, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Slight Rent Growth Still Typical N...

The Nation’s Only High Supply Market to Grow Rents

2025-01-22T03:13:45-06:00

Across the U.S., apartment markets adding the most new supply are also cutting rents at the most severe clip – with one exception. Savannah, GA was the only U.S. apartment market to add more than 4% inventory in the past year and still maintain any notable rent growth. Supply was much higher than usual in Savannah in the year-ending 1st quarter 2024, with the addition of 2,089 units increasing the existing base by a sizable 6.5%, according to data from RealPage Market Analytics. This made Savannah one of only 14 U.S. markets with inventory growth above 6% in the past year. Among those markets, only Savanna saw positive rent growth, with an increase of 1.5% year-over-year. All other markets with inventory growth of more than 6% cut rents by at least 1.5% in the past year. In fact, if we were to extend that measure to markets with 4% or more inventory growth in the past year, of those 26 markets, Savannah was still the only one to see any meaningful rent growth.

This Carolinas Market Grew Renter Households at Nation’s Fastest Rate

2025-04-21T16:32:00-05:00

In looking at net growth in renter households since 2020, several North Carolina and South Carolina markets rank among the top in the nation. In Wilmington, the number of renter households grew by over a quarter (25.2%) from 2020 to 2023, which marked the highest rate in the nation, according to data from RealPage Market Analytics. Naturally, the list of markets with the biggest growth in renter households virtually mirrors supply trends, as areas with more supply are going to naturally see more absorption. And apartment absorption in the Carolinas has been prolific of late. Among the nation’s 150 largest markets, the Carolinas contains six metros within the top quartile nationally for renter household growth. Only Greensboro, Columbia and Fayetteville rank outside of that top 25% of markets.

Strong Pre-Leasing Early in Season Points to Mild Second Half for Student Housing

2026-03-04T06:52:54-06:00

Student housing momentum in the first half of the pre-lease season has gotten considerably stronger in the last couple years. While the second half of the season is expected to be more mild, look for the market to end Fall 2024 in solid shape. If we divide student housing pre-lease data in half, drawing the line between February and March data, it’s easy to see that student housing momentum in the first half of the pre-lease season has gotten notably stronger in recent years. While pre-lease velocity has eased a bit year-over-year, Fall 2024 remains the second-strongest reading on record at 54.9%, according to data from RealPage Market Analytics. With the first half of Fall 2024 looking so similar to Fall 2023 (55.8%), it’s not hard to imagine the second half of Fall 2024 also comparing to last year’s performance. And while momentum was comparatively mild in Fall 2023’s second half (38.2%), if the student housing sector displays similar performance in Fall 2024’s second half, the final pre-lease rate would still be respectable at 93.1%, matching the market’s decade average. @include('site.elements.media.image', ['fileId' => 21696, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Student housing rent growth in the past few years has also acted out of character. In general, price setting tends to be harder in the second half of the pre-lease season. But in 2021 through 2023, while the typical moderation did occur, the second half of the season still saw rent growth of about 1% to 2%. Prior to 2021, rent cuts were the norm in the second half of the season, averaging a slight decline of 0.4%. @include('site.elements.media.image', ['fileId' => 21695, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Moving forward, look for moderation to continue, but for rent growth to at least remain above historically normal levels into the first half of the Fall 2025 leasing season.

Dayton Apartment Performance Bolstered by Affordable Class C Units

2025-01-22T03:13:44-06:00

The small apartment market of Dayton, OH reported strong apartment rent growth of 5.3% in the year-ending February 2024, according to data from RealPage Market Analytics. That marked a top 10 performance nationwide, among the nation’s 150 largest apartment markets. Within the market’s most affordable Class C units, however, that rate was considerably higher at 6.4%. Likewise with occupancy, Dayton’s Class C occupancy of 96% in February boosted the marketwide occupancy reading, which clocked in at 95.1% as of February. The market’s priciest product – Class A units – recorded the poorest performance for occupancy at 94% in February. Class B units, meanwhile, garnered the market’s poorest annual effective rent change reading at 4.1%. Still, rent change across all asset classes came in well above the national norm of 0.2% in February. Dayton has 58,000 apartment units and is located about 50 miles north of Cincinnati – another one of the nation’s top performing apartment markets of late.

Annualized Permits and Starts Increase in February

2026-03-04T06:52:54-06:00

Both single-family and multifamily starts jumped in February as better weather conditions and tight inventories spurred residential development. The seasonally adjusted annual rate (SAAR) for single-family starts surged by 11.6% to 1.129 million units from January and are up 35.2% from last February, according to the lastest data from the U.S. Census Bureau. Multifamily starts increased 8.6% to 377,000 units from last month but are 35.9% below the year ago rate. Meanwhile, forward looking permitting for single-family homes inched up 1% to 1.031 million units, an increase of 29.5% from last year. Multifamily permitting increased 2.4% to 429,000 units but was significantly lower than the annual rate from last February (-32.8%). @include('site.elements.media.image', ['fileId' => 21618, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Completions of multifamily units were up 20.8% from January to 644,000 units and increased 18.8% from last February. The number of multifamily units under construction slipped 1% from January to 966,000 units and was down 6.8% from last year. Additionally, the number of multifamily units authorized but not started was up 3.3% at 125,000 units in February but down 23.8% from one year ago. Single-family completions were up 20.2% for the month and 4.2% for the year to 1.072 million units. The number of single-family units under construction was virtually unchanged at 683,000 units but that was 6.1% less than one year ago. Single-family units authorized but not started inched down 1.4% from January but climbed 6% from last February to 141,000 units. Together with the small two-to-four-unit figures, total residential permitting ticked up 1.9% from last month and 2.4% for the year to 1.518 million units. February’s large increases in annual multifamily and single-family starts brought the SAAR of total residential starts up 10.7% from last month to 1.521 million units and up 59% from last year. @include('site.elem...

Population Loss Deep in the Bayou State Markets

2025-01-22T03:13:44-06:00

Three Louisianna markets recorded the nation’s worst population losses from 2020 to 2023. Lake Charles suffered the deepest decline, with a resident loss of 5.6% between 2020 and 2023, according to the latest population estimates from the U.S. Census Bureau. While that was significant, the market actually saw a slight population increase of 0.4% from 2022 to 2023, specifically. The New Orleans-Metairie metro area saw the nation’s second-worst loss from 2020 to 2023, shedding 4.3% of its population. This market has seen its population decline every year since 2020 and logged the nation’s worst showing between 2022 and 2023, with a loss of 1.2%. In 2020, New Orleans had just over 1 million residents. As of 2023, the population is estimated at just over 960,000 people. Meanwhile, the Houma-Bayou Cane-Thibodaux, LA metro, the statistical area right next door to New Orleans, lost 4% of its population in from 2020 to 2023. Those three Louisianna markets are the only ones nationwide to see a loss of 4% or more between 2020 and 2023. Losing more than 3% but less than 4% in that time frame were California markets San Francisco, Santa Cruz and Napa, as well as Charleston, West Virginia.

Post-Revision Metro Job Gains Slow Further

2026-03-04T06:52:54-06:00

Benchmark revisions to employment data by the Bureau of Labor Statistics resulted in lower totals for job gains at the metro level than were previously reported. February saw those totals shrink further. Nine of January’s top 10 job creation markets returned in February but most of these metros saw annual totals continue to decline. The total number of new jobs for February’s top 10 was 134,200 jobs fewer than last month’s combined total. Houston topped the list for job creation in the 12-months-ending in February with 79,800 new jobs, less than half their total one year ago. Phoenix moved up to the #2 spot with 52,700 jobs created, although that was about 10,000 less than in January. @include('site.elements.media.image', ['fileId' => 21586, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '613']]) Dallas came in at #3, gaining 50,600 jobs for the year, about even with last month but down more than 85,000 from last year. Perennial job leader New York slipped to the #4 spot with 47,900 jobs gained through February, far fewer than the pre-revision six-figure gains of the past. Las Vegas moved up to #5 this month, gaining 37,700 jobs and Austin was close behind at #6 with a gain of 36,500 jobs, both close to their respective January’s total. Miami slipped to the #7 spot with 35,600 jobs gained, slowing by more than 10,000 jobs from last month. Philadelphia dropped two spots to #8 with 33,200 new jobs, about 5,000 fewer than last month and 50,800 less than one year ago. Sacramento jumped on to the top 10 list at #9 with 30,000 jobs gained, 11,9000 more than last February’s annual total, while Tampa rounded out the top 10 with a gain of 29,600 jobs for the year, close to 5,000 fewer than in January. As mentioned, the total number of jobs gained for the year-ending February for the top 10 markets was down about 134,000 jobs from their collective total last month. The next 10 markets (#11-#20) saw their combined annual jobs gains decrease by only 7,1...

Northeast Region Logs Nation’s Tightest Apartment Occupancy

2025-01-22T03:13:44-06:00

While apartment occupancy in Northeast markets generally trends higher than the national average, the difference from the rest of the nation has become especially noticeable recently. Among the nation’s largest 291 apartment markets, those in the Northeast logged an average occupancy rate of 96.3% at the end of 2023. That was nearly a full percentage point ahead of the next highest region – the neighboring Mid-Atlantic area. Tight occupancy across the Northeast was inspired by stable demand drivers and minimal supply pressure. Among Northeast apartment markets, average occupancy was tightly clustered in 2023. On the high end, occupancy was at 97% or greater in Utica, Rochester, New York, Manchester and Springfield, while rates were just shy of 97% in Buffalo and Providence. In fact, the only Northeast market with occupancy below 95% was the small Watertown-Fort Drum, NY metro area, which was the clear outlier with a rate of 92.3%. For more information on the state of apartment markets in the Northeast, including forecasts, watch the webcast Market Intelligence: Q1 Northeast Region Update.

South Florida Rents Rise Dramatically Since COVID, While Bay Area Stagnates

2026-03-04T06:52:54-06:00

In the four years since the global pandemic began and caused massive swings in the U.S. apartment industry, average effective rents have climbed approximately one quarter nationwide. Two regions of the country, however, demonstrate the two extremes of that rent change. In South Florida, which is comprised of three markets including Miami, Fort Lauderdale and West Palm Beach, effective rents have climbed by the highest dollar differential in the nation since February 2020, equating to a more than 43% jump in four years. In contrast, on the other side of the country, the Bay Area saw effective rents stagnate in that time frame. Within the three Bay Area markets of San Francisco, San Jose and Oakland, the price of rent has all but flatlined – and even declined in the case of San Francisco – since February 2020. @include('site.elements.media.image', ['fileId' => 21490, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '529']]) Before the pandemic started, these two coastal areas ranked very differently for monthly rents. Prices in South Florida averaged at around $1,720 per month back in February 2020, before the lockdowns started. Meanwhile, average prices were much more expensive in the Bay Aare at nearly $3,000. As of February 2024, after such significant differences in price setting, the two regions are much closer together in price, with rents averaging around $2,500 in South Florida and about $2,960 in the Bay Area. Since the onset of the pandemic, effective rents for professionally managed apartments have climbed more in Miami than in any other major market nationwide, according to data from RealPage Market Analytics. Fort Lauderdale and West Palm Beach take the no. 2 and no. 3 spots, respectively, for percent change in effective rents since February 2020, among the 50 largest apartment markets nationwide. A few other Florida markets rank high for total change in effective rents since the pandemic. Tampa (42.5%), Jacksonville (32.3%) and Orla...

Slow Inventory Expansion Keeps Apartment Market Fundamentals Afloat in Chicago

2026-03-04T06:52:54-06:00

Chicago’s apartment market fundamentals have typically fallen below national norms. But over the past year or so, Chicago has witnessed a reversal of that trend, with occupancy and annual rent growth exceeding U.S. averages. Located on the shore of Lake Michigan in the northeast corner of Illinois, Chicago-Naperville-Elgin has a population of roughly 9.3 million residents, the third largest metropolitan area in the U.S. and home to the nation’s third most populous city. However, the population here has fallen recently. From 2020 to 2023, Chicago’s population declined nearly 2%, according to the latest data from the U.S. Census Bureau. Still, Chicago-Naperville-Elgin has an above average concentration of young adults – demographics critical to apartment owners – with 20.6% of the population between 20- and 34-years-old, slightly above the nationwide average of 20.4%. The Windy City has a diverse economy and is a major financial center and a transportation and distribution hub. The metro’s largest employment sector is Trade/Transportation/Utilities which accounts for nearly 21% of all jobs, ahead of the national average share of 18%. Chicago also has one of the nation’s largest concentrations of science and engineering jobs. Manufacturing, printing, publishing and food processing also play major roles in the economy. In addition, Chicago has the nation’s second-largest concentration of Fortune 500 company headquarters with a total of 31 companies, the largest (in terms of revenue) being Walgreens Boots Alliance, Archer Daniels Midland, AbbVie, Allstate, United Airlines Holdings and Abbot Laboratories. @include('site.elements.media.image', ['fileId' => 21327, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Like other major markets across the country, Chicago was hit hard by COVID-19 pandemic-era job cuts. While Chicago was able to recoup all the jobs lost during the pandemic by mid-2022, the market has more recently found itself in a hole....

RealPage Economy Express Episode 23

2025-01-22T03:13:44-06:00

Episode 23: What are the complexities of a balanced economic recovery? Nonfarm payroll employment surged by 275,000 jobs in February, the Bureau of Labor Statistics reported. Revised RealPage employment forecasts for the top 50 metropolitan areas show significant growth, with Texas dominating half of the markets. Annual inflation ticked up to 2% in February, with notable contributions from shelter and gasoline prices, according to the Consumer Price Index. Inflation is expected to decrease in upcoming months, aligning more closely with the Fed's expectations. Mortgage applications fell by 1.6% in the latest weekly showing, influenced by higher mortgage rates, according to the Mortgage Bankers Association’s seasonally adjusted index. There’s still a significant number of apartment units under construction in the multifamily sector. The Federal Reserve maintained interest rates recently and have plans for three quarter-percentage point cuts by the end of the year. Recent trends indicate the U.S. economy is undergoing dynamic changes. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

Apartment Rent Growth in Salinas Among Top in Nation

2025-01-22T03:13:44-06:00

Apartment rent growth in the small California market of Salinas ranked among the top in the nation in February. Effective asking rents grew 7.1% in Salinas in the year-ending February, compared to a near-stagnant rate nationally of just 0.2%, according to data from RealPage Market Analytics. That increase ranked this small California market with less than 25,000 existing apartment units third nationally for rent performance. On a month-over-month basis, Salinas rents grew 1.3% in February, which also marked the third best rate in the nation. Current rent growth in Salinas stands above the market’s pre-pandemic average of 6.9% (from 2015-2019), marking one of the very few markets nationwide where that is the case. The ascent of rents in Salinas continued despite occupancy contracting 60 basis points year-over-year to stand at a still strong rate of 96.8%. Limited supply has helped to shore up the market’s performance, as there were virtually no units underway in the market at the end of 2023. The county seat of Monterey County, Salinas is located about one hour outside of San Jose and has a population of roughly 432,900, per the U.S. Census Bureau. Rents in Salinas remain relatively affordable in comparison to the pricier Bay Area. Effective asking rents in Salinas averaged $2,460 in February 2024, significantly below both San Francisco ($3,243) and San Jose ($3,051).

West Region Records Nation’s Slowest Apartment Rent Growth Since Pandemic

2026-03-04T06:52:54-06:00

Since the global pandemic, apartment rents in the West region have grown at the slowest rate in the nation. Meanwhile, rents in the nation’s three other regions – the South, Midwest and Northeast – have all grown effective rents at a rate faster than the national norm. In turn, average effective rents in the West region now run below that of the Northeast for the first time since mid-2015. @include('site.elements.media.image', ['fileId' => 21372, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '805']]) Over the last four years, rents in the West have climbed from an average rate of $1,831 in February 2020 to $2,204 in February 2024 – an increase of about 20%, according to data from RealPage Market Analytics. That is by far the slowest rate of growth nationwide. Meanwhile, rents in the South, Midwest and Northeast have climbed approximately 29% since February 2020. Nationwide, apartment rents have climbed 25.5% in the four-year period since February 2020 to stand at an average rate of $1,806 as of February 2024. @include('site.elements.media.image', ['fileId' => 21364, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Typically, the rents in the West region run ahead of the Northeast, South and Midwest – in that order. However, in November 2023, rents in the Northeast inched past the West to become the priciest region in the country for apartment rents. That pattern has held since November and, as of February 2024, average rents in the Northeast ($2,221) outpaced the West ($2,204) by about $17. Meanwhile, rents in the South ($1,586) and Midwest ($1,408) regions remained below the U.S. norm ($1,806), which is typical. As the apartment industry rebalances from the extreme price hikes seen in 2021 and 2022, rent change has slowed in the West and especially the South. In the year-ending February, rents contracted 1.2% across the South and 0.4% in the West. Conversely, rents continued to grow on an annual basis in the Midwest...

Carolinas Apartment Demand Punches Above its Weight

2025-04-21T16:31:48-05:00

Apartment demand in North Carolina and South Carolina ranks as the strongest in the nation, indexed by relativity. The Carolinas garnered apartment demand for 2.5 times more than the share of existing local stock in calendar 2023, topping every other region for the measure. Apartment markets in the Carolinas absorbed nearly 25,000 units on net in calendar 2023. That accounted for about 10% of all U.S. absorption. But the Carolinas make up a relatively small piece of existing units across U.S. multifamily stock, with just a 4.2% share. Given the size of existing stock across the North and South Carolina, indexed absorption was especially high here in 2023. Indexed demand was also significant in the Mountains/Desert region and in Texas, Florida and Southeast markets last year. While total absorption volumes were quite a bit higher in those regions, the share of existing stock in those areas is also significantly bigger. In comparison, the Lower Midwest region has about the same share of existing stock as the Carolinas, but total demand in the Lower Midwest was much smaller, translating to a much milder indexed pace.

Detroit Logged Unseasonably Strong Apartment Demand in 4th Quarter

2026-03-04T06:52:54-06:00

Although apartment demand in Detroit is generally nonexistent in the final quarter of the year, often resulting in net move-outs, 2023’s 4th quarter marked a stark and welcomed contrast from that trend. Prior to the COVID-19 pandemic, Detroit typically recorded seasonally weak apartment demand in the October to December quarter. But not in 2023. Roughly 1,100 units were absorbed in Detroit in the last three months of 2023, marking the second-best showing in the Midwest after only Minneapolis. This solid performance almost entirely wiped out net move-outs seen in the first half of 2023, leaving annual demand still negative, but barely at -104 units. However, even that annual loss was a notable improvement from the deep net move-outs of about 6,400 units Detroit suffered in 2022. In fact, any apartment demand at all in Detroit in 4th quarter is quite the feat. Absorption was positive in the last three months of the year only five other times in the last 23 years throughout the RealPage Market Analytics dataset. @include('site.elements.media.image', ['fileId' => 26533, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Detroit was one of only a few markets where 4th quarter demand outpaced pre-COVID norms. While absorption in Detroit wasn’t as strong as some other markets nationwide in 4th quarter, it was still quite a change from the net move-outs for about 1,100 units the market saw on average in the last three months of the year during the 2010 through 2019 time frame. Additionally, Detroit was one of three major markets – along with West Palm Beach and Newark – where demand outpaced supply in 4th quarter. Nearly 800 units were delivered in Detroit in the last three months of the year, registering below demand by about 280 units. @include('site.elements.media.image', ['fileId' => 26527, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Detroit’s apartment rents could be attracting new residents. This is a very af...

Sun Belt Markets Dominate 2024 Employment Forecast

2025-01-22T03:13:44-06:00

Among the nation’s 50 largest apartment markets, 26 markets are expected to see 2024 job growth above the U.S. average. Austin is expected to record the fastest job growth in the nation among major markets, according to data from RealPage Market Analytics. In addition to Austin’s forecasted employment expansion of 1.8% in calendar 2024, several other Sun Belt markets are also forecasted to post solid job gains. Las Vegas is expected to see employment grow by 1.7%. (Las Vegas was no stranger to strong employment growth during 2023, as employment gains in Nevada led the nation, buoyed by additions in Sin City.) Houston, Orlando and Phoenix should see job growth of 1.6% in calendar 2024, while Dallas is expected to expand its employment base 1.5%. Meanwhile, several major markets are forecasted to post more lackluster job gains. The pace of hiring in Cleveland, Detroit, Milwaukee, Pittsburgh and St. Louis is forecasted to rise at a relatively mild rate of 0.5% in calendar 2024, the weakest job base expansions among the nation’s largest markets. Job base expansion is expected to slow across the nation in the coming year. The U.S. overall is expected to see job growth fall from around 2% in 2023 to less than 1% in 2024. For more forecast expectations on 2024 performance, including which markets are expected to outperform, see here.

February Pre-Lease Rate Falls Below Year-Ago Figure

2026-03-04T06:52:54-06:00

Student housing pre-leasing momentum slowed below the year-ago rate for the first time this year in February 2024. As of February, 57.2% of beds at the core 175 universities tracked by RealPage have been claimed for Fall 2024, compared to a slightly stronger rate in the year-ago readings, according to data from RealPage Market Analytics. Last year, in February 2023, pre-leasing rates hit 58.2%, an all-time high in the RealPage data set. In a more typical February, pre-lease rates hover around the halfway point of 50%, except in the COVID-impacted year of 2021 when February’s pre-lease rate was lower than is typical at about 40%. February 2024’s reading, then, serves as a microcosm for current student housing performance. That is, student housing performance remains historically strong in 2024, albeit below all-time highs recorded over the last couple years. @include('site.elements.media.image', ['fileId' => 21213, 'attributes' => ['border' => '0']]) Properties at all distances from campus reported strong pre-lease rates in February, with the highest readings seen in pedestrian assets within a half mile to campus at 57.8%. Properties within a half mile to one mile of campus had a pre-lease rate of 57% in February, compared to a 55.6% pre-lease rate at properties over one mile from campus. These three readings are also trending back toward more historical norms in terms of how tightly clustered performance is across all distances. Annual effective rent change, while still considerably higher than pre-pandemic norms, continued to soften in February. Annual effective rents grew 6.4% in February, meaning that students who leased a bed for the Fall 2024 academic year in February paid, on average, 6.4% more than students leasing the same bed a year earlier. @include('site.elements.media.image', ['fileId' => 21212, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '523']]) Meanwhile, several individual schools posted ultra-high pre-lease rates as of Fe...

U.S. Has 1.1 Million More Occupied Apartment Units Today Than in 2020

2025-01-22T03:13:44-06:00

Apartment demand has been strong over the last few years – and so has apartment supply. In layering those two metrics alongside total existing apartment inventory, demand again appears very strong. The U.S. has over 1.1 million more occupied apartment units than it did at the onset of the global pandemic in early 2020, according to data from RealPage Market Analytics. Of the approximately 19.4 million market rate, professionally managed apartments across the U.S., February 2024 occupancy clocked in at 94.1%. That translates to a little over 18.2 million occupied apartment units nationwide, an increase of more than 1.1 million occupied units compared to February 2020. At that time, the nation’s 17.9 million market rate, professionally managed apartment units were 95.4% occupied, translating to about 17.1 million occupied units. Even considering that U.S. occupancy has come down from highs recorded in late 2021 and early 2022, the number of occupied units has remained at or near all-time highs amid the onslaught of continuous new supply delivering. About 1.5 million apartment units have delivered across the U.S. since early 2020.

Revisions Lower Metro Job Gains

2026-03-04T06:52:54-06:00

The annual benchmark revisions from the Bureau of Labor Statistics (BLS) reduced employment levels in almost half of the top 150 markets RealPage tracks in 2023. December’s top 10 job gain markets totaled 698,100 new jobs pre-revision but only 504,700 after, a reduction of almost 28%. After revisions, three of last month’s top 10 would not have made the list (Los Angeles, Atlanta and Boston). Houston would have topped the list instead of Dallas and Washington, DC, Orlando and Austin would have been in the top 10. Turning to job gains tallied through the 12-months ending January 2024, despite a mix of up or downward revisions, job gains remain relatively strong throughout the nation. However, there are continuing signs of slowing from the rebound and recovery levels seen after the pandemic disruption. January’s top 10 job gain markets totaled 530,500 new jobs, down 11.7% from December for the same 10 markets. Nine of December’s revised top 10 markets returned in January and several changed places. @include('site.elements.media.image', ['fileId' => 21168, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '613']]) New York regained the top spot for job gains with 107,400 jobs added, an improvement of almost 20,000 jobs from December’s total but down almost 200,000 jobs from last year. Houston slipped to the #2 spot, adding 83,300 jobs, down 19,600 jobs from December and 91,700 jobs from last January. Phoenix came in at #3 with 63,700 jobs gained, down about 8,000 from last month and 30,500 from last year. After revisions, Dallas dropped to the #4 spot, gaining 49,800 jobs through January, down significantly from the revised December total of 73,100 jobs and the pre-revision December total of 101,000 jobs. Miami remained in the top 10 at #5 with 47,000 jobs gained, down only 14,700 jobs from last year and up slightly from December. At #6, Philadelphia added 38,600 jobs for the year, down 7,200 jobs from December and almost 68,000 jobs from last yea...

U.S. Inflation Trends in Wrong Direction in February

2025-01-22T03:13:44-06:00

Despite the Federal Reserve’s efforts to curb inflation, consumer prices trended up in February. The price of goods and services paid by U.S. consumers ticked up to 3.2% in the year-ending February, according to the Consumer Price Index for All Urban Consumers measured by the Bureau of Labor Statistics. That was marginally higher than the 3.1% annual rate in January – an unwelcomed sign that inflation is trending in the wrong direction. Annual inflation as of February was slightly above economists’ expectations (3.1%) and notably beyond the Federal Reserve’s target of 2%. However, inflation has cooled considerably since reaching a 40-year high of 9.1% in June 2022. For comparison, the inflation rate averaged 1.6% annually in the five years leading up to the COVID-19 pandemic (2015-2019). Core inflation, which strips out volatile costs of food and energy, was up 3.8% year-over-year in February, below the 3.9% annual increase in January and the smallest annual increase since May 2021. The energy index fell 1.9% in the year-ending February, with lower gas prices (-3.9%) contributing to that downturn. The cost of shelter, which is keeping the overall inflation rate high, rose 5.7% from a year ago. Still, that was the slowest increase in over a year. However, the shelter index has a well-documented lag effect. Excluding the cost of shelter, consumer prices were up just 1.8% year-over-year in February.

Every Submarket in Phoenix is Logging Rent Cuts

2025-04-21T16:32:20-05:00

Apartment demand in Phoenix was very strong in 2023, but even solid absorption couldn’t keep up with supply, resulting in rent cuts across all submarkets. Phoenix logged demand for a stunning 12,000 apartments in 2023, which turned out to be the biggest absorption tally the market has seen since calendar 2000 – excluding the COVID-19 boom of 2021. This was the nation’s second-best demand tally in 2023, behind only Houston. Still, supply in Phoenix was more significant at 17,000 units in 2023. As a result, occupancy as come down from recent highs, landing at just 92.6% in January. That is the lowest occupancy reading Pheonix has seen since January 2014. But with occupancy weak across the market, rents cuts were recorded in all submarkets in February, even in areas with low or no recent supply like South Glendale, Northwest Phoenix and West Phoenix.

U.S. Job Growth Continues to Surpass Expectations

2026-03-04T06:52:54-06:00

The U.S. labor market has remained resilient in the face of high interest rates. In February, job creation exceeded expectations, but the unemployment rate moved higher. @include('site.elements.media.image', ['fileId' => 21068, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Employers added roughly 275,000 workers to payrolls in February 2024, according to a survey of businesses by the Bureau of Labor Statistics (BLS). That was an improvement over the 229,000 jobs gained in January (which was revised down), and the second-biggest one-month gain since May 2023. In addition, recent job gains came in above what economists were forecasting (+200,000 jobs). Of note: The job counts for December and January were revised considerably lower. Downward revisions to December 2023 data showed 43,000 fewer jobs were added than previously reported, down from 333,000 to 290,000 positions. The January 2024 job growth number was also revised down, decreasing by 124,000 jobs to a total of 229,000 positions. With these revisions, employment gains in December and January combined were 167,000 jobs lower than previously reported. @include('site.elements.media.image', ['fileId' => 21069, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Recent job gains were above the monthly average of around 251,000 jobs added throughout calendar 2023 and were ahead of pre-pandemic norms. From 2015 to 2019, the U.S. economy added an average of roughly 190,000 jobs each month. On an annual basis, the nation gained more than 2.7 million jobs in February 2023. Although that was the weakest annual gain since March 2021, it was above the pre-pandemic average of around 2.4 million jobs added annually from 2015 to 2019. The U.S. economy has recovered all the net jobs lost during the COVID-19 pandemic. As of February, the nation had nearly 5.5 million more jobs (+3.6%) compared to the pre-pandemic employment level from February 2020. Jobs by Industry Jo...

RealPage Economy Express Episode 22

2025-01-22T03:13:44-06:00

Episode 22: Cautious optimism in the economic landscape? Consumer confidence decreased slightly in February, reports the Fed’s Survey of Consumers. There's a strong correlation between consumer confidence and apartment demand. When consumer confidence is up, demand for apartments increases and, in turn, consumers cut back on spending and long-term commitments during times of economic uncertainty. New residential home sales in reached a seasonally adjusted annual rate of 661,000 in January 2024. That was a 1.5% increase from December. Pending home sales receded, however, by 4.9% in January, reflecting consumer sensitivity to mortgage rate fluctuations. The S&P CoreLogic Case-Shiller Index reported a 5.5% annual gain for 2023, though most major markets saw monthly price decreases in December. The ADP National Employment Report indicated a 140,000 job increase in February and a notable 5.1% rise in annual pay. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

New York Continues Reign as Nation’s Tightest Major Apartment Market

2026-03-04T06:52:54-06:00

New York has historically been one of the nation’s most prolific apartment markets in terms of both pricing and inventory. Except for faltering in 2020 and 2021 due to the COVID-19 pandemic, apartment market fundamentals in New York generally exceed U.S. norms. New York-White Plains has a population of nearly 10.8 million residents, the largest metropolitan area in the nation and home to the nation’s most populous city. However, the population here has fallen recently. From 2021 to 2022, the market population declined 1%, according to the latest data from the U.S. Census Bureau. Still, New York-White Plains has a high concentration of young adults – demographics critical to apartment owners – with 22.4% of the population between 20- and 34-years-old. That compares to the nationwide average of 20.4%. The economy in the Big Apple consists of long-term structural drivers. Although considered to be the world’s preeminent financial center, the metro’s largest employment sectors include Education/Health Services, Professional/Business Services, Government and Trade. New York leads the nation with 47 Fortune 500 company headquarters, the largest (in terms of revenue) being JPMorgan Chase, Verizon Communications, Citigroup, Pfizer, PepsiCo, MetLife and Goldman Sachs Group. @include('site.elements.media.image', ['fileId' => 21012, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) New York was hit hard not only by COVID-19 pandemic-era job cuts, but also by residents fleeing the city for less expensive rental options when employees started working from home. Some just went across the Hudson River, while others moved all across the nation as the work-from-anywhere trend took hold. However, New York has recovered all the jobs lost during the pandemic, with its current employment base now sitting roughly 179,000 jobs, or 2.5%, above the pre-pandemic level from February 2020. Most recently, the metro recorded a net gain of 61,300 jobs in 2023, about a...

This Small Midwest Market Ranks Among National Rent Growth Winners

2025-01-22T03:13:44-06:00

Located about 160 miles south of Canada along the border of North Dakota and Minnesota is one the best apartment rent growth markets in the U.S. Fargo’s 5.4% increase in effective asking rents during the year-ending February tied with Champaign-Urbana in the #8 spot nationally, according to data from RealPage Market Analytics. That rent increase was notably ahead of the Midwest norm (2.8%) and far better than the U.S. average (0.2%). Fargo has a population of around 259,000 and less than 38,000 existing apartment units. During the pandemic, Fargo didn’t experience the massive rent change swings that most other markets across the country witnessed. In fact, Fargo avoided year-over-year rent cuts and never ventured into double-digit annual rent growth. The market’s recent rent increase was well ahead of its pre-pandemic average of just 1.1% (2015-2019). Despite the recent rent increases, Fargo remains relatively affordable for renters. Effective asking rents in the market averaged $1,027 in February 2024, below the Midwest region average ($1,408) and well below the U.S. norm ($1,806). Helping drive rent growth in Fargo has been limited new supply. Over the past five years (2019-2023), Fargo received an average of roughly 400 units annually. With minimal new supply, occupancy in Fargo has remained tight, averaging 96% over the past five years and registering at 95.5% as of February 2024.

Apartment Rent Growth Remains Aloof in February as Occupancy Stabilizes

2026-03-04T06:52:54-06:00

U.S. apartment rents continued to tick up on a negligible basis in February. Asking rents for professionally managed apartments inched up just 0.2% in the year-ending February 2024, with change measured on a same-store basis, according to data from RealPage Market Analytics. On a monthly basis, rents also ticked up 0.2%, indicating that monthly rent change added up to a collectively unchanged rate in the previous 11 months. Dating back to 2010, the average monthly rent increase for February has been about 0.6%. While February 2024 saw rents increase 0.2% month-over-month, rent growth momentum remains aloof. Still, the February increase of 0.2% was the largest monthly increase dating back to June 2023 which suggests that seasonal movement in rents – though muted – appears to be following historical trends. Muted rent growth is expected to continue throughout 2024 as supply continues to put downward pressure on rents. Apartment occupancy held steady at 94.1% in February, the third consecutive month at that rate, which further supports the idea that apartment occupancy is reaching a stabilization point. Still, the current 50-year high in apartment construction will no doubt pose a headwind to occupancy through the remainder of 2024. Nearly 962,000 apartment units were under construction across the nation at the end of 2023, with about 672,000 of those units expected to deliver in 2024. @include('site.elements.media.image', ['fileId' => 20954, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '1141']]) Construction Weighs Down Rent Growth, Causing Cuts in High-Supply Markets While supply weighs on the nation’s apartment fundamentals at large, several individual markets display this relationship clearly. Supply remains the key driving force behind markets seeing the deepest rent cuts. Development hotspots such as Austin, Jacksonville, Nashville, Orlando, Phoenix, Salt Lake City and Raleigh/Durham all rank in the bottom 10 for rent change performance...

After Surging in Pandemic Era, Occupancy in Three-Bedroom Units Falls

2026-03-04T06:52:54-06:00

In yet another example of apartment fundamentals returning to pre-pandemic norms, occupancy among unit types has rebounded back to typical pre-COVID patterns. In particular, occupancy among the largest unit type – three-bedroom units – has softened, after surging to all-time highs earlier in 2021 and 2022. Occupancy runs the tightest by far in one-bedroom and two-bedroom units, as of January 2024, registering in-line with the national norm, according to data from RealPage Market Analytics. Occupancy in three-bedroom and efficiency units, meanwhile, registers approximately 70 basis points (bps) below the national norm. This marks a return to normal occupancy patterns across unit types. @include('site.elements.media.image', ['fileId' => 20791, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Across the U.S., occupancy registered at 94.1% in January 2024, marking a 10-year low. Still, among unit types, one-bed and two-bed units carried the occupancy load with rates registering in-line with the national norm. One-bedroom units logged occupancy of 94.1% in January, followed closely by 94.2% in two-bedroom units. Three-bedroom units and efficiency units were the underperformers again in January with occupancies of 93.4% and 93.3%, respectively. In a pre-pandemic world, apartment occupancy generally registered the strongest in the two most popular unit types: one-bedroom and two-bedroom units. These two unit types are also easily the most common, constituting the largest share of apartment units nationwide. Three-bedroom units and efficiency units comprise a much smaller fraction of the overall apartment stock nationwide. During the demand boom of 2021 and 2022 when apartment occupancy surged nationwide, all unit types got a boost in occupancy. But three-bedroom units recorded the highest jump, climbing 270 basis points (bps) from the pre-pandemic occupancy rate in February 2020 of 94.7%. All other unit types experienced softer – but still no...

2023 Rent Growth Especially Strong in Some Midwest Markets

2025-01-22T03:13:44-06:00

The Midwest comprised more than one-third of the nation’s top apartment rent growth performers in 2023. Price increases across the Midwest have been supported by limited new supply volumes and stable apartment demand in recent years. Among the nation’s largest 150 apartment markets, Fargo and Madison logged top five performances, with effective asking rents climbing around 6% in calendar 2023. Prices were up by about 5% in Lincoln and Champaign-Urbana, while small Midwest markets with rent growth around 4% included Youngstown-Warren-Boardman, Grand Rapids, Dayton, Akron and Omaha. Meanwhile major markets Cincinnati and Chicago were the top two performers among our 50 largest markets, with prices growing 3.6% in each in calendar 2023. In fact, only two Midwest markets among the top 150 to trail the U.S. average for rent growth in 2023: Kalamazoo and Fort Wayne. For more information on the state of apartment markets across the Midwest, including forecasts, watch the webcast Market Intelligence: Q1 Midwest Region Update.

Apartment Construction Explodes in Center City Philadelphia

2025-01-22T03:13:44-06:00

Apartment development is ramping up in Philadelphia and the market’s urban core claims a large share of all that new supply. In 2023, a total of 9,197 units came online across Philadelphia’s 16 submarkets, the highest level since RealPage Market Analytics began tracking the market more than 20 years ago. That new supply was driven by completions in Center City Philadelphia which added a market-leading 2,488 units. Looking ahead, the pace of new apartment supply is expected to explode in Philadelphia and especially in the urban core. Of the 18,610 units under construction in Philadelphia at the end of 2023, roughly 7,300 of those units (39%) were located in Center City Philadelphia. About 13,400 units are slated for delivery in Philadelphia during 2024, with 41% of those completions coming online in Center City Philadelphia, setting new record highs. All that new supply is expected to grow total inventory in Center City Philly just under 12% in 2024 alone, nearly quadruple the expected annual inventory growth in the market (3.3%) and the U.S. (3.5%). The 5,481 units scheduled to deliver in Center City Philadelphia this year marks the biggest volume among the 74 urban core submarkets in the nation’s 50 largest markets. However, new supply has taken a toll on Center City Philadelphia, as it recorded the market’s weakest occupancy rate of 93.6% as of January 2024. Despite the onslaught of new supply and declining occupancy, Center City Philadelphia was able to eke out a year-over-year price increase during January, though mild at 0.7%.

San Francisco Bucks National Trend with Occupancy Growth

2026-03-04T06:52:54-06:00

San Francisco was the only large U.S. apartment market to record occupancy growth in the past year. In the nation overall, apartment occupancy hit a decade low of 94.1% in January, after falling 70 basis points (bps) in the past year, according to data from RealPage Market Analytics. Most large apartment markets also saw occupancy contract in the year-ending January, with annual declines getting as deep as 150 bps in some big-supply Sun Belt markets. In fact, the only apartment market among the nation’s largest 50 to see any occupancy improvement at all in the past year was San Francisco. Apartment occupancy in San Francisco climbed 40 bps year-over-year to land at 95.4% in January. The result was also a top-five national performance, beat out by only the occupancy showings in New York, Newark, Anaheim and Milwaukee. This performance is a welcome respite, as the market took one of the hardest hits during the initial wave of the COVID-19 pandemic, when occupancy dropped as low as 92.2% in 2021. @include('site.elements.media.image', ['fileId' => 20813, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '487']]) Only a handful of other large markets saw either stagnant occupancy (Minneapolis) or very mild declines (Detroit and West Palm Beach) in the year-ending January. San Francisco’s recent performance isn’t spectacular, especially compared to the market’s typical rhythm. But the market did avoid a decline that affected the rest of the nation’s big markets including other Bay Area giants San Jose (-20 bps year-over-year) and Oakland (-50 bps). That resilience can’t really be chalked up to apartment demand. While San Francisco did account for about half of the overall annual demand tally in all of the Bay Area, demand in 2023 was not as strong as some other markets nationwide, nor was it up to par with what San Francisco typically posts. However, demand for 1,623 units in San Francisco was relatively balanced with a reasonable amount of concurre...

Student Housing Occupancy Leaders Since 2020

2025-04-21T16:40:23-05:00

If you consider Fall 2020 to be the start of a new cycle in student housing – and we do – then we’ve already seen a few campuses rise to the top of the occupancy leaderboard over the last three years. Since Fall 2020, these 20 campuses have claimed the highest average occupancy, led by Appalachian State University, which has an average rate just 40 basis points (bps) shy of 100%, according to data from RealPage Market Analytics. Appalachian State, along with all the other schools highlighted in blue, have seen simply excellent demand and, as a result, effectively every bed has been filled at these schools over the last three years. Wisconsin-Madison is worth watching in the Fall 2024 pre-lease season as it is expected receive about 2,900 beds in the coming year. Not to mention, the conventional market in Madison will receive about 1,200 new units in 2024. The conventional markets where Boise State and Utah Valley reside (Boise, Idaho and Orem, Utah, respectively) have tightened considerably over the last couple years, supporting further student housing demand. Meanwhile, demand at Purdue and Central Florida struggled in Fall 2020, but both schools have since realized strong absorption rebounds.

Multifamily Permitting Falls 9% in January

2026-03-04T06:52:54-06:00

Multifamily permitting and starts continued to slow in January, while single-family volumes extended the upward trend started in late 2022. The seasonally adjusted annual rate (SAAR) for multifamily permitting decreased 9% from December’s rate and was down almost 27% from last year, falling to 405,000 units, according to data from the U.S. Census Bureau. Multifamily starts were down 35.8% from last month and fell 37.9% from last January to 314,000 units. Meanwhile, single-family permitting edged up 1.6% from December to 1.015 million units, an increase of 35.7% from last year. Single-family starts dipped 4.7% for the month but were up 22% for the year at 1.004 million units. Despite higher mortgage rates and elevated home prices in many markets, the single-family market continues to expand. @include('site.elements.media.image', ['fileId' => 20783, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Completions of multifamily units were up 6.3% from December to 538,000 units and increased 53.7% from last January. The number of multifamily units under construction slipped 0.9% from December at 979,000 units but are up 5% from last year. Additionally, the number of multifamily units authorized but not started was up 2.6% at 120,000 units in January but were down 24.5% from one year ago. Single-family completions were down 16.3% for the month and 15.8% for the year to 857,000 units. The number of single-family units under construction was virtually unchanged at 680,000 units but that was 9% less than one year ago. Single-family units authorized but not started inched up 1.4% from December and were up 5.2% from last January at 142,000 units. Together with the small 2 to 4-unit figures, total residential permitting ticked down 1.5% from last month but increased 8.6% for the year to 1.470 million units. January’s large decrease in annual multifamily starts brought the SAAR of total residential starts down 14.8% from last month to 1.331 million u...

Milwaukee Sneaks into a Top Performance Spot

2026-03-04T06:52:54-06:00

If pressed to name the hottest apartment markets in the U.S. right now, Milwaukee likely would not be in your top five guesses. But you might be mistaken. This overlooked Midwest market posted one of the nation’s top apartment performances in the past year, and the stability in Milwaukee is expected to hold for the near term as well, ranking it among bigger, more typical heavier hitters. Milwaukee logged one of the best occupancy performances in the U.S. in January, with a rate of 95.8%, according to data from RealPage Market Analytics. This was the fourth-best showing among the nation’s largest 50 apartment markets. The remaining markets to rank in the top five were typical high-occupancy markets: New York, Newark, Anaheim and San Francisco. @include('site.elements.media.image', ['fileId' => 20707, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) The key to Milwaukee’s performance among the nation’s elite has been balance. Most Midwest apartment markets have displayed a stability that other markets nationwide haven’t, and that has been a key ingredient to strong apartment performance amid the uncertainty triggered by the COVID-19 pandemic. While most apartment markets across the U.S. fluctuated significantly in the past few years, the Midwest held onto constancy – not necessarily due to strong demand, but because developers haven’t built as much new product in the Midwest as they have in, say, the Sun Belt. In Milwaukee, specifically, the inventory increased by 1.8% in 2023, well behind the U.S. average of 2.3%. In the past five years, Milwaukee’s apartment base grew by 7.6%, shy of the U.S. norm of 9.8%. Demand drivers in Milwaukee appear fairly tepid. Job growth was below the U.S. average in the past year (up just 0.4%), and the market’s employment base contracted 2.3% in the past five years, per the Bureau of Labor Statistics. The population has also contracted a bit, according to the most recent data from the U.S. Census Bureau fr...

West Coast Logged Tepid Apartment Demand in 2023

2025-01-22T03:13:44-06:00

West Coast apartment markets accounted for one of the smallest pieces of the absorption pie in 2023. The West Coast absorbed nearly 13,000 units on net in calendar 2023, accounting for a little more than 5% of the nation’s total demand. That volume is even less impressive when noting that the West Coast region makes up nearly 20% of the nation’s existing apartment stock. Relative absorption compared to existing product works out to an indexed rate of 0.3. That was the nation’s second weakest reading ahead of only the (much smaller) Northeast. (It should also be noted that the Northeast data does rely heavily on the New York MSA, which can sway that region’s figures notably.) Regions where indexed absorption was the strongest included the Carolinas, the Mountains/Desert, Texas and Florida. For more information on the state of apartment markets along the West Coast, including forecasts, watch the webcast Market Intelligence: Q1 West Coast Update.

RealPage Economy Express Episode 21

2025-01-22T03:13:44-06:00

Episode 21: Can economic resilience continue? Inflation is easing. The Consumer Price Index climbed by 3.1% in the year-ending January, mainly driven by shelter costs. Recent months have shown a reduction in rent growth. Given the roughly one-year delay between rent changes and their impact on shelter inflation, expect more softening of inflationary pressures in the near term. December's job landscape remained robust, and stable across states. This stability highlights a job market that is navigating a period of careful adjustment. Initial unemployment claims dropped to 212,000 for the week ending February 10, further highlighting strength in the U.S. job market. January's building permits slightly declined from December but showed a year-over-year improvement. Housing starts fell 14.8% from December, signaling potential shifts in construction activity. Mortgage applications fell 10.6% in the week-ending February 16, reflecting sensitivity to interest rate movements and inflationary concerns. No recession is in the forecast, but caution is advised for the subdued growth ahead. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

High Supply Markets Cut Rents Most Often in 2023

2026-03-04T06:52:54-06:00

We know there is a direct inverse relationship between apartment rent growth and apartment inventory growth. The more apartment units a market builds, the more downward pressure operators face to keep prices low. The fewer apartment units a market builds, the more runway operators have to realize pricing power. In 2023, that was on full display as developers delivered an astounding 440,000 apartment units nationwide. During calendar 2023, occupancy dipped 90 basis points (bps) under the weight of all that new supply and rents ticked up a minor 0.2%, according to data from RealPage Market Analytics. @include('site.elements.media.image', ['fileId' => 20675, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Markets with High Supply and Deep Rent Cuts Unsurprisingly, the markets that delivered the highest ratio of new inventory also tended to cut rents at the deepest clip. Of the nation’s 50 largest apartment markets, 17 added inventory at a rate above the national average (2.8%) in 2023. Among those high supply markets, Salt Lake City and Nashville stand out as the clear supply heavyweights, both growing total inventory 7% or more in 2023 alone. Those 17 high supply markets saw effective asking rents come down by 2.2% on average in 2023, compared to marginal growth nationally. Some high supply markets posted especially deep rent cuts – such as Austin, Jacksonville and Atlanta. @include('site.elements.media.image', ['fileId' => 20676, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Markets with Low Supply and High Rent Growth Plenty of markets grew inventory below the national norm in 2023 and subsequently realized annual effective rent growth above the national norm. In total, 20 of the nation’s 50 largest markets posted 2023 inventory growth below 2.8% and rent growth above 0.2%. For the most part, these markets were in the Midwest, with Cincinnati, Chicago, Milwaukee and Cleveland all posting 2023 rent growth o...

Job Base Expansion in 2023 Exceeds National Norm in 12 States

2026-03-04T06:52:54-06:00

The nation’s total job base expanded 2% in 2023. In 12 states, however, that rate of job growth was even stronger. Nevada, Idaho, South Dakota, Wyoming, Texas, South Carolina, West Virginia, Florida, Kentucky, New Mexico, North Dakota and Arizona all grew total employment at a faster pace than the national norm in 2023. Most of those states are located in the South and West regions of the country. @include('site.elements.media.image', ['fileId' => 20558, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Nevada grew its total employment base at the highest rate in the country in 2023, with its job count growing 3.8% with the net addition of 57,700 jobs, according to data from the Bureau of Labor Statistics. Nearly three-fourths (73%) of the state’s total employment is in the Las Vegas metro area, with Vegas accounting for 80% of the state’s job growth in 2023. The Leisure/Hospitality Services sector accounts for roughly one in four jobs in both the state and in Las Vegas. Much of Nevada’s job growth over the past year was seen in the Leisure/Hospitality Services sector (+16,000 jobs or 4.5% growth) followed by Professional/Business Services (+14,500 jobs or 6.7% growth) with the bulk of those additions in Las Vegas. @include('site.elements.media.image', ['fileId' => 20559, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) The nation’s second-best performers, Idaho and South Dakota, were 80 basis points behind Nevada, both with job growth of 3% in 2023. Idaho added 25,000 jobs over the past year. Pandemic darling market Boise City accounted for more than half (52%) of that job growth while the metro area accounts for less than half (47%) of statewide employment. (Boise City has also grown its young adult population and apartment inventory hugely in the last couple years.) Much of Idaho’s job growth in 2023 was attributed to Education/Health Services (+9,500 jobs or 7.7% growth) and Government (+6,200 jobs or 4.8% gro...

Small Colorado Town Sees Apartment Volume Skyrocket

2025-01-22T03:13:44-06:00

In 2023, the small Colorado market of Greeley added about 1,350 apartment units to its total inventory – an all-time high in the RealPage Market Analytics data set. Those 2023 deliveries brought total existing inventory to just over 17,500 units across the Greeley market, which marked a 63% increase in apartment inventory in the last decade. Greeley, located about 65 miles north of Denver and about 50 miles south of Cheyenne, has a total population of about 110,000 residents, per the U.S. Census Bureau. Meanwhile, there were another 2,500 units underway at the end of 2023 that are expected to deliver over the next year or two in Greeley. Average effective rents in Greeley stood at one of the lower rates in Colorado as of January, clocking in at $1,574. Comparatively, rents in Denver, Boulder and Durango hover around $1,900 per month.

East Coast Rent Growth Forecasted Ahead of the U.S. in 2024

2025-04-21T16:32:52-05:00

The East Coast apartment markets consistently outperform the national average for rent growth, and the forecast for 2024 is much of the same. In fact, most East Coast markets – from giant New York, NY to tiny Utica, NY – are currently experiencing rent growth ahead of the national average. When looking at annual average forecasted rent growth and forecasted percent inventory growth, it becomes clear that the two East Coast subregions are set to rank toward the top of the U.S. regional leaderboard for rent growth in 2024. And contributing to that stability is strong demand in the absence of large supply volumes. The Northeast markets are slated to see rent growth of nearly 3% while inventories should increase an average of about 1.5%. Meanwhile, Mid-Atlantic markets are expected to command rent growth close to 2.5% and inventory increases of around 3%.

Apartment Demand Hits All-Time High in Raleigh

2026-03-04T06:52:54-06:00

U.S. apartment demand looked downright strong in 2023’s final quarter. And while many major markets posted absorption tallies far higher than pre-pandemic norms, Raleigh/Durham stood out among even the strongest performers. Raleigh/Durham absorbed 2,886 units during the October to December time frame. That rate was more than triple the market’s 10-year average for 4th quarter apartment demand of roughly 930 units. And the recent tally was more than 2,300 units higher than the pre-pandemic 10-year average (from 2010 to 2019) of 525 units. Such strong 4th quarter demand propelled annual absorption to 8,709 units across Raleigh/Durham in 2023, marking a top 10 performance among the nation’s 50 largest apartment markets, according to data from RealPage Market Analytics. Raleigh/Durham’s total demand in 2023 marked a tremendous improvement from annual absorption of about 600 units recorded in 1st quarter 2023. It also registered as market’s strongest annual demand tally since RealPage began tracking the market in 1995. @include('site.elements.media.image', ['fileId' => 20601, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Across neighborhoods, all but one of Raleigh/Durham’s 12 submarkets recorded some level of demand in 2023. Only Northwest Raleigh recorded mild net move-outs from just 87 units, while concurrently no new supply delivered there. Absorption was strongest in Northeast Raleigh (1,695 units) and Central Raleigh (1,347 units) with both markets accounting for over 15% of the market’s total annual demand. Far North Raleigh (1,156 units) and Southeast Raleigh (1,082 units) were the other two markets to clear the 1,000-unit demand threshold. @include('site.elements.media.image', ['fileId' => 20602, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Still, even record demand fell well short of the high level of concurrent supply. In 4th quarter 2023 alone, nearly 3,900 apartment units delivered in Raleigh/Du...

Six Apartment Communities Sell for Over $200 million in 2023

2026-03-04T06:52:53-06:00

Following record-setting sales in 2021 and 2022, investments in U.S. apartments plummeted in 2023 amid the rising cost of debt and economic uncertainty. However, the asset class remains an attractive commercial real estate investment compared to other asset types. And six apartment communities changed hands for over $200 million during the year. @include('site.elements.media.image', ['fileId' => 20442, 'attributes' => ['border' => '0', 'width' => '971', 'height' => '429']]) More than 5,400 apartment properties changed hands at a value of $119 billion during 2023, according to data from MSCI Real Capital Analytics. The overall sales volume in 2023 was down 61% year-over-year. This was also well below the record-setting sales that averaged $332 billion per year in 2021 and 2022, when a total of about 25,000 properties changed hands as the result of pent-up demand following the onset of the pandemic. @include('site.elements.media.image', ['fileId' => 20443, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Recent activity was also well below the $169 billion annual average logged during the five years leading up to the pandemic (2015-2019). The average price per unit was also down, registering at $204,216 in 2023, off 13% year-over-year. While that was the lowest level since 2020, it was well above the per unit pricing from 2015 to 2019 which averaged $151,000. Meanwhile, cap rates for apartment transactions in 2023 were up 60 basis points (bps) year-over-year, averaging 5.3%. That was the highest cap rate in four years. Still, apartment cap rates during 2023 remained the lowest among major property types. Following are the largest single-asset market-rate apartment transactions during 2023, all selling for over $200 million and representing every region of the country. @include('site.elements.media.image', ['fileId' => 20444, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Solow Tower Apartments The largest sin...

Charleston Leads for Job Growth in December

2025-01-22T03:13:44-06:00

Charleston is a national top performer for job growth. In December 2023, the Charleston-North Charleston, SC metro led the RealPage top 150 markets in 12-month percent change in employment with 6% annual growth, according to data from the Bureau of Labor Statistics. Charleston is the third-largest metropolitan area in South Carolina but one of the most dynamic in terms of growth and diversity. Industry growth in the past year was led by the Professional & Business Services sector, primarily the Administrative and Support Services subsector (which includes temporary workers). The Leisure & Hospitality sector’s strong growth reflects the region’s attraction to tourists while the Education & Health Services, Other Services and Manufacturing industries also contributed to Charleston’s growth in 2023. Charleston has a combination of slow and steady employment (Joint Base Charleston and other government and education employment) and fast-growing industries (high-tech, aircraft and automobile manufacturing) that provides this Southeast seaport with the infrastructure to continue to be one of the national leaders for growth going forward.

Incomes Grew Faster Than Rents in 2023

2026-03-04T06:52:54-06:00

Here's some good news: Apartment rent-to-income ratios declined in 2023 as incomes grew faster than rents. The median U.S. household signing a new lease for a market-rate apartment came in with a rent-to-income ratio of 22.9% in 4th quarter 2023, down 90 basis points (bps) from the peak and down 60 bps year-over-year, according to data from RealPage Market Analytics. In fairness, rent-to-income ratios remain slightly above the pre-COVID norms of around 22%, given that rents outpaced wages during the peak inflationary period. But market-rate apartment affordability is steadily improving thanks to the onslaught of new supply cooling off rent growth, even as wages keep rising. This is good news for renters AND operators. @include('site.elements.media.image', ['fileId' => 20576, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) When wages outpace rents, it widens the demand funnel for rentals at all price points. This trend should almost certainly continue through 2024 with more supply on the way and rent growth likely to remain minimal. Whenever I share this data, I get questions on methodology so let's talk about that. This approach mirrors how most REITs report on affordability (and indeed, all of them are in the low- to mid-20% range similar to this data). We take the household income (with roommates) reported on the lease application along with the executed rent, then calculate each household's rent-to-income ratio. We then take the median ratio. (Note this does not include renewals since renters typically do not report incomes at renewal.) Other measures routinely inflate rent-to-income ratios due to poor methodologies. You can't just mash together incomes and rents from different datasets, as most researchers do. Particularly when you do this with public datasets on income, it's apples and oranges. This is because there are (unfortunately) millions of households who cannot afford market-rate rentals. If you include them in the calcu...

Net Move-Outs Permeate Nearly Every Submarket in San Diego

2025-01-22T03:13:43-06:00

San Diego logged the worst demand performance among the nation’s 150 largest apartment markets in 4th quarter 2023. The Southern California market logged net move-outs for 987 units in the October to December time frame, marking not only the worst demand reading nationwide, but also the nation’s starkest delta between 4th quarter 2023 demand performance and the pre-COVID decade average for 4th quarter demand, according to data from RealPage Market Analytics. In San Diego, average 4th quarter demand from 2010 to 2019 (the decade leading up to the pandemic) averaged 235 units. Among San Diego’s 13 submarkets, only three posted any absorption in 4th quarter 2023, including Chula Vista/Imperial Beach (238 units), La Jolla/University City (124 units) and La Mesa/Spring Valley (11 units). The remaining 10 submarkets posted net move-outs ranging from a low of 471 units in Downtown San Diego/Coronado to a less severe 23 units in Northwest San Diego. Concurrently, 929 new apartment units delivered in San Diego in 4th quarter 2023.

Student Housing Pre-Lease Rate Reaches All-Time High in January

2026-03-04T06:52:53-06:00

Just under half of all student housing beds were pre-leased for the Fall 2024 academic year as of January 2024. As of January, 49% of beds at the core 175 universities tracked by RealPage have been claimed for Fall 2024, marking the highest pre-lease reading ever recorded in January, according to data from RealPage Market Analytics. January 2023’s pre-lease reading of 48.2% marked an all-time high by a wide margin, and 2024’s rate surpassed that by about 80 basis points (bps). @include('site.elements.media.image', ['fileId' => 20468, 'attributes' => ['border' => '0']]) Across product distances, beds closest to campus reached the highest pre-lease occupancy. As of January, 49.5% of beds within a half mile of campus were pre-leased, compared to still-strong readings of 48.7% of beds pre-leased within a half mile to one mile of campus and 47.4% of beds pre-leased more than a mile from campus. Meanwhile, students who leased a bed for the Fall 2024 academic year paid, on average, 6.7% more than students leasing the same bed a year earlier. That rent change varied across product distances, with the highest price hikes recorded in properties more than one mile from campus (8.7%) and the lowest price hikes recorded in properties within a half mile of campus (6.1%). Properties within a half mile to one mile of campus grew same-store effective asking rents 7.4% on average in the year-ending January 2024. While those price hikes still registered well above pre-COVID norms of more like 2% annual effective rent growth, rent gains have come down from the 9%+ gains recorded at some points in the Fall 2023 pre-lease season. @include('site.elements.media.image', ['fileId' => 21125, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '444']]) A couple of campuses reported ultra-strong pre-lease occupancy as of January. University of Tennessee, Purdue University, University of Arkansas and Virginia Tech all boasted pre-lease rates of 80% or higher as of January. Un...

Big Supply in the Southeast Drags Down Apartment Occupancy

2025-01-22T03:13:43-06:00

Apartment occupancy in the Southeast region of the U.S. fell to a 10-year low in 2023. It’s common for occupancy in the Southeast to run behind the national average. In fact, the only exception of late was in 2021, when occupancy in the Southeast – driven by the work-from-home shift that contributed to population increases in small beach towns – surpassed 97%. But since that peak, occupancy has declined notably. While resident retention, leasing traffic and apartment demand remain solid, however, the culprit here – like in much of the Sun Belt – is massive new apartment supply, as the volume of units delivering is outpacing absorption rates. Thus, occupancy has faded quickly back to more typical expectations, landing at just above 93% at the end of 2023. Moving forward, the question remains whether the Southeast can keep its head up as construction activity continues at a strong pace. For more information on the state of apartment markets in the Southeast, including forecasts, watch the webcast Market Intelligence: Q1 Southeast Update.

Cresting Revenues in Florida Apartments Now at a Trough

2026-03-04T06:52:53-06:00

Revenue change in Florida markets hit a recent low in January, a far cry from the extreme peaks of 2021 and 2022. Among the nation’s largest 150 apartment markets, 17 are in Florida. Those 17 markets saw revenues decline an average of 3.4% in the year-ending January, according to data from RealPage Market Analytics. In comparison, U.S. revenues were unchanged for the year. Just for a few further comparisons, the 16 California apartment markets in the top 150 saw revenues fall an average of 0.7%, while the 11 Texas markets averaged declines of 2.6%. Revenue loss is quite a change for Florida, which until recently was logging record high annual revenue growth that topped out at nearly 20% in February 2022. Back then, the work-from-anywhere trend was in full force, and quite a few households relocated to small affordable beach towns with strong lifestyle appeal. As such, rental housing in some Florida markets started bursting at the seams as residents moved from larger, more expensive areas. Developers took note of the trend and tried to fill the need with increasingly large construction pipelines. As inventories started to surge in these areas, revenues started to cool. Florida’s declining revenues in the year-ending January are mostly on the rents side of operations (-2.3%), while occupancy also came down in the past year (-110 basis points). @include('site.elements.media.image', ['fileId' => 20414, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Also weighing heavily on the Florida apartment market, the cost of insurance has increased notably. While average insurance prices across the U.S. have more than doubled since the onset of the COVID-19 pandemic, some of the most extreme cases of rising insurance costs are in Florida apartment markets. Some of the biggest increases in insurance costs since 2019 were in Tampa, Miami, West Palm Beach and Jacksonville. Florida markets with the worst revenue declines in the past year were inevitab...

RealPage Economy Express Episode 20

2025-01-22T03:13:43-06:00

Episode 20: Cautious optimism for 2024? Pending home sales increased by 8.3% in December, indicating robust demand in the for-sale market. The Federal Reserve’s preferred measure for inflation, the Personal Consumption Expenditures price index, increased by a slight 0.2% in December, with a year-over-year increase of 2.6%. Consumer sentiment surged by 13% in January, marking the highest level since July 2021. Apartment rent growth has moderated to less than 0.3% annually over the last six months due to an increase in new apartment units and other factors. The U.S. job market remains robust, maintaining an unemployment rate of 3.7%. While the Fed does not intend to lower the federal funds rate in their upcoming March meeting, rate cuts are anticipated in the second half of the year. The economic landscape in 2024 presents opportunities and challenges, with cautious optimism on near-term prospects. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express serie

Solid Job Growth Keeps Philadelphia Apartment Market Fundamentals Afloat

2026-03-04T06:52:53-06:00

Philadelphia’s apartment market has historically been one of the nation’s most consistent performers, maintaining relatively solid fundamentals even during tumultuous times. Like most apartment markets across the country, Philadelphia experienced deflating market fundamentals after a surge in occupancy and rents in 2021 and 2022. However, the Philadelphia apartment market has been exceeding U.S. norms for both occupancy and rent growth recently, even as elevated supply levels dampen the market’s performance. Philadelphia, in the southeast corner of Pennsylvania, is situated between Baltimore to the southwest and New York to the northeast, both less that a two-hour drive away. Philadelphia is the seventh most populated metro area in the country with roughly 6.2 million residents, while it has the nation’s 10th largest apartment market with just over 413,000 existing units. The economy in the City of Brotherly Love consists of slow growing but stable industries, many of which are in the higher education and health care sectors. In fact, the Education/Health Services sector is the metro’s largest employer. Philadelphia is home to 12 Fortune 500 companies, including AmerisourceBergen, Comcast, Rite Aid, Lincoln National, DuPont, Aramark, Universal Health Services, Toll Brothers, UGI, Burlington Stores, Campbell Soup and Avantor. The metro area also has a large concentration of hospitals and universities. Philadelphia is home to the University of Pennsylvania, Temple University and Drexel University among others. As of 2022, there were more than 180,000 students enrolled in the 32 colleges and universities in the area that have an undergraduate enrollment greater than 500 students. @include('site.elements.media.image', ['fileId' => 20423, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) With Philadelphia’s slow and steady economy, the apartment market has historically been a middle-of-the-road performer, but fundamentals have remained above...

Apartment Inventory in Midland/Odessa Has Grown 40% in a Decade

2025-01-22T03:13:43-06:00

Midland/Odessa, TX generally gets attention for being a boom-and-bust oil market, and that is certainly reflected in the market’s apartment fundamentals. At any given time, Midland/Odessa may rank as the nation’s top performer for apartment rent growth – only to rank as the national laggard a few months later. A different storyline emerges when looking at construction. In the last decade, a steady stream of new apartment supply has quietly been growing the market’s total inventory at one of the faster rates in the nation. Since 2013, Midland/Odessa has added about 7,400 apartment units, accounting for a nearly 37% increase in total apartment inventory, according to data from RealPage Market Analytics. That compares to a national norm of more like 19% inventory growth since 2013. In the near term, however, supply will all but halt. In 2023, Midland/Odessa added a minimal 215 units, and the market had no units underway as of 4th quarter 2023.

Apartment Rent Growth Remains Near Stagnant

2026-03-04T06:52:53-06:00

Apartment rent growth hovered just above stagnant in January, as has been the case since August 2023. Rents for professionally managed apartments ticked up a minor 0.3% in the year-ending January 2024, with change measured on a same-store basis. January’s rate registered in line with December 2023’s reading, indicating that while the deceleration of rent change may have leveled off, a meaningful re-acceleration of rent growth is also unlikely. RealPage continues to expect rent growth to remain fairly flat through 2024, with many markets posting cuts. @include('site.elements.media.image', ['fileId' => 20418, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Tepid rent growth at the start of 2024 may seem counterintuitive considering the resurgence of apartment demand over the past 12 months. But it’s important to remember that supply also increased substantially during that same window. In fact, the volume of new supply outpaced absorption and that trend will likely persist throughout 2024. As such, rent growth should continue to face downward pressure as a result of new apartment deliveries. Nearly 440,000 apartment units delivered across the nation’s 150 largest apartment markets in calendar 2023, marking a 2.3% boost to the nation’s total apartment inventory, according to data from RealPage Market Analytics. Simultaneously, the nation absorbed nearly 234,000 apartment units in 2023 – a healthy rate of demand that still failed to meet concurrent levels of new supply. Nearly 962,000 apartment units were under construction across the nation at the end of 2023, with about 672,000 of those units expected to deliver in 2024. Occupancy in January remained unchanged from December’s rate – at a 10-year low of 94.1%. This reading, along with December’s 2023 identical reading, collectively registers as the lowest rate seen since January 2014. Nationwide, apartment occupancy declined 70 basis points (bps) year-over-year in January. This was the n...

Deep Rent Cuts in Some Florida Markets in 2023

2025-04-21T16:34:03-05:00

Apartment rent growth in Florida hit a snag in 2023, after two years of leading the nation for price hikes. Apartment demand remained solid in the past year in the Sunshine State, but new apartment construction has been more significant, causing occupancy and rents to backtrack. Some of Florida’s apartment markets ranked in the nation’s top quartile for inventory growth in 2023, including Jacksonville, Sarasota, Cape Coral and Ocala. In fact, Ocala is one of the fastest growing apartment markets nationwide, with nearly 20% of existing inventory underway, according to data from RealPage Market Analytics. These same Florida markets ranked among the nation’s worst for price cuts in 2023, with declines as deep as 6.7% in Ocala. Conversely, Miami and Gainesville – two markets that managed minimal rent growth in 2023 – have relatively manageable supply pipelines.

U.S. Job Growth Nearly Doubled Expectations in January

2026-03-04T06:52:53-06:00

The U.S. labor market has remained surprisingly strong despite interest rates that are now at a two-decade high. In January, job growth surged, and unemployment remained low – both exceeding economists’ expectations. @include('site.elements.media.image', ['fileId' => 20249, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Employers added roughly 353,000 workers to payrolls in January 2024, according to the Bureau of Labor Statistics (BLS). That was an improvement over the 333,000 jobs gained in December (which was revised up), and the biggest one-month gain in a year. In addition, that recent job gain came in at nearly twice the rate (+185,000 jobs) that economists were forecasting. Of note: The job counts for November to December were revised considerably higher. Upward revisions to November 2023 data showed 9,000 more jobs were added than previously reported, up to 182,000 positions. The December 2023 growth number was also revised up, increasing by 117,000 jobs to a total of 333,000 positions. With these revisions, employment gains in November and December combined were 126,000 jobs higher than previously reported. @include('site.elements.media.image', ['fileId' => 20219, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Recent job gains were above the monthly average of around 255,000 jobs added throughout calendar 2023 and were ahead of pre-pandemic norms. From 2015 to 2019, the U.S. economy added an average of roughly 190,000 jobs each month. On an annual basis, the nation gained more than 2.9 million jobs in January 2023. Although that was the weakest annual gain since March 2021, it was above the average of around 2.4 million jobs added annually from 2015 to 2019. The U.S. economy has recovered all the net jobs lost during the COVID-19 pandemic. As of January, the nation had nearly 5.4 million more jobs (+3.5%) compared to the pre-pandemic employment level from February 2020. Jobs by Industry Job grow...

7 Takeaways from NMHC’s Annual Meeting

2025-01-22T03:13:43-06:00

Here are 7 observations from the National Multifamily Housing Council’s Annual Meeting this week: 1) Optimism is back. Much different from this time last year. Not that 2024 will be a banner year. It will likely be a slog both for operations and to find deals. But the rallying call seems to be: “It’s not getting worse!” – mirroring comments made last week by Blackstone’s Jon Gray that CRE prices are bottoming. There’s improved perceived clarity with rates, pricing, op-ex (even insurance!), supply and demand. 2) Fundamental demand for apartments is strong and should remain strong – though still short of supply in 2024. Improved consumer confidence, a resilient job market plus wages outpacing rents all add up to robust demand. (And don’t give too much credit to high home prices and mortgage rates. Apartment renters who would have bought a house likely rented SFR instead.) 3) “Heads on beds” remains the strategy. Operators continue to give on price to maintain occupancy given the 50-year high in completions hitting in 2024. And diminished loss-to-lease means there’s less upside on renewals. Retention is still tough. Even Class B/C operators are seeing impact from lease-ups in high-supply areas, where their best residents are getting lured up-market. Demand is out there, but it's a very competitive market where renters have the power. 4) Construction starts continue to plunge – which means substantially less supply by late 2025 and into 2026-27 (and improved revenue outlook by then). You can get construction loans but at lower loan-to-cost ratios, which means more equity. But a lot of equity that had been targeting ground-up development has shifted to potential lease-up distress. 5) Expense growth will outpace revenue growth in a lot of markets in 2024, but the silver lining is that expense pressures are showing signs of mitigating. I heard stories of owners thrilled to get insurance prem...

High Supply Apartment Markets with Less Severe Class A Rent Cuts

2026-03-04T06:52:53-06:00

Among high supply apartment markets posting rent cuts in 2023, luxury Class A product is the relatively strong performer in some key places. In six of the nation’s major markets experiencing a supply boom, product delivering at the top of the price spectrum – that is, Class A units – reported the least severe rent cuts compared to Class B and C units within the same market. To be clear, in these six high supply markets posting rent cuts – Austin, Phoenix, Dallas, Orlando, Salt Lake City and San Antonio – all asset classes posted rent cuts in 2023, but the degree of decline was less severe in the pricier Class A product, according to data from RealPage Market Analytics. @include('site.elements.media.image', ['fileId' => 20125, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Austin was the national laggard for rent cuts in 2023, among the top 50 markets, with an annual decline of 6%. As such, all asset classes reported deepening rent cuts in every quarter of 2023 – with one mild exception. From 3rd quarter to 4th quarter 2023, Class A rent cuts maintained the same rate of annual rent cuts at 4.4%. That 4th quarter reading in Class A product was the mildest rent cut seen across the price spectrum. Operators in Class B (-5.7%) and Class C (-7.9%) units cut rents more harshly in Austin in 2023. Phoenix experienced a similar breakdown in product class performance, compared to Austin. In 2023, operators in Phoenix cut rents 4.3%, also one of the worst performances among the nation’s top 50 markets. And while Class B units logged rent cuts slightly less than the market average at 3.9%, the real divergence was between Class A and Class C units. Operators in Phoenix’s Class A units cut rents a relatively mild 1.9% in 2023, compared to a much deeper cut of 7.2% in Class C units. Like Austin and Phoenix, Orlando also posted one of the most severe rent cuts among top 50 markets in 2023. Operators in Orlando cut effective asking rents 4% in 2023, wi...

Harvard Reports Growing Cost Burdens, Even as Rental Market Cools

2025-01-22T03:13:43-06:00

In the latest report from Joint Center for Housing Studies of Harvard University, rental markets continued to cool in 4th quarter 2023, but not fast enough to alleviate affordability burdens across the U.S. The quarterly report, which utilized data from RealPage Market Analytics, among other sources, emphasized that apartment occupancy and rent growth has softened after peaking in early 2022. However, average monthly rents persisted above pre-pandemic levels, leading to a record 50% of renter households being cost-burdened. Additionally, housing instability has increased, with rising eviction rates and homelessness reaching an all-time high in 2023. Despite deteriorating affordability and stability, however, rental assistance fell short of a growing need, leaving many households without support. The report points out the need for continued commitment to pandemic-era relief measures to address affordability, housing assistance and improvements to the rental market. Read the full report from Joint Center for Housing Studies of Harvard University here.

U.S. Apartment Occupancy Hits Decade Low

2026-03-04T06:52:53-06:00

U.S. apartment occupancy hit a 10-year low at the end of 2023, as sizable new supply volumes weighed on market fundamentals. But some markets bucked that trend. After the worst of the COVID-19 pandemic, as the country started to open back up at the end of 2021 and the first few months of 2022, apartment occupancy – and prices – saw a drastic hike. Feeling renewed, developers rushed to permitting offices nationwide to have projects approved for construction, resulting in one of the most intense apartment supply pipelines since the 1980s. Amid those record deliveries hitting the market, however, the landscape has changed. At 94.1%, December 2023 occupancy was the lowest the nation has recorded since January 2014, when the rate was also at 94.1%, according to data from RealPage Market Analytics. December 2023 occupancy registered more than 100 basis points (bps) behind the nation’s decade average of 95.4%. However, December occupancy stood a few ticks above the 10-year norm from the 2004-2014 decade (93.9%), despite the U.S. apartment market undergoing an accelerated construction boom since then. @include('site.elements.media.image', ['fileId' => 20091, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Across the nation, most apartment markets logged December 2023 occupancy below their 10-year averages. Only a handful of exceptions existed, and all of those were smaller apartment markets that have undergone a rapid transformation in the last decade. Even more rare were markets with occupancy well ahead – by over 100 bps – of decade norms. That group is very small, including college towns Champaign-Urbana, College Station-Bryan, New Haven-Milford and boom/bust prone Midland/Odessa. Most of the largest 50 apartment markets, on the other hand, logged occupancy behind their 10-year averages. And supply has been the clear culprit in these markets. In the worst showings, December 2023 occupancy registered below 10-year averages by 230 bps or mo...

Seattle Apartment Supply Volumes Scheduled to Soar in 2024

2025-01-22T03:13:43-06:00

Seattle supply is set to skyrocket in 2024. The market received about 6,100 new units in 2023 and is expected to gain more than triple that amount in 2024, according to data from RealPage Market Analytics. At the end of 2023, there were nearly 25,700 units under construction in Seattle with more than 18,800 of those units on track to deliver in 2024. That represents a tremendous inventory growth rate of 5% and one of the largest levels of new units coming online in the nation. For comparison, the previous record for annual deliveries in Seattle was about 11,400 units in the year-ending 2nd quarter 2019, while the long-term average for annual completions in Seattle is closer to about 5,500 units. All 16 submarkets will receive some level of new supply during 2024. The urban core submarkets of Downtown Seattle and Capitol Hill/Central District are set to receive over 3,000 units each in the next 12 months, followed by North Seattle/Shoreline and University District/Ballard which are each expecting about 2,000 units. Several submarkets will receive over 1,000 units, including South Lake Union/Queen Anne, Redmond, Kirkland/Bothell and northern Lynnwood/Edmonds/Mukilteo.

Rent Growth in Smaller Apartment Markets Outperforms Larger Metros

2025-04-21T16:38:27-05:00

As rent growth has cooled nationwide recently, smaller apartment markets have maintained a stronger performance. This is a typical pattern, as smaller markets don’t boast as strong an upside as larger markets in good times – but they also don’t get hit quite as hard as the bigger markets when times are hard. The nation’s largest 50 apartment markets (not counting New York, which is excluded due to an outsized weighted average) logged average effective asking rent cuts of 0.1% in calendar 2023, according to data from RealPage Market Analytics. Meanwhile, the next largest 100 apartment markets – with an existing unit count of between 20,000 and 110,000 units – managed to hold onto rent growth of 1.6%. One caveat, however, is that because there’s such a big range of sizes among these smaller individual markets, differences in performance can differ more than big markets, despite overall numbers showing less volatility.

Multifamily Permits and Starts Finish 2023 on Upswing

2026-03-04T06:52:53-06:00

While still generally trending lower, the seasonally adjusted annual rates (SAAR) for both multifamily permitting and construction starts ticked up to end 2023 on an up note as developers may be trying to squeeze in one more project to close out the calendar year. The December SAAR for multifamily permits increased 1.4% from November’s rate to 449,000 units and the annualized rate for multifamily starts jumped 7.5% from last month to 417,000 units. However, both series were below last year’s rates with permitting down 26.6% from last December and starts down 9.5%. @include('site.elements.media.image', ['fileId' => 20040, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Meanwhile, the SAAR for single-family permitting was up slightly (1.7%) from last month but 32.9% higher than last year at 994,000 units. Single-family starts fell 8.6% from November’s annual rate to 1.027 million unit but were up 15.8% from last December. Completions of multifamily units were up 11.1% from November to 509,000 units and increased 33.6% from last December. The number of multifamily units under construction was unchanged from November at 991,000 units but was up 7.4% from last year. Additionally, the number of multifamily units authorized but not started was down 11% at 121,000 units in December and down 18.8% from one year ago. Single-family completions were up 8.4% for the month and 6.1% for the year to 1.056 million units. The number of single-family units under construction fell slightly (-1.2%) to 671,000 units, but that was 11.4% less than one year ago. Single-family units authorized but not started were virtually unchanged from November and last December at 140,000 units. Together with the small 2-4-unit figures, total residential permitting ticked up 1.9% from last month but increased 6.1% for the year to 1.495 million units. November’s larger decrease in annual single-family starts brought the SAAR of total residential starts down 4.3% from last m...

RealPage Economy Express Episode 19

2025-01-22T03:13:43-06:00

Episode 19: What’s in store for 2024? The Bureau of Labor Statistics reported the Producer Price Index – an average change in domestic selling prices – has fallen for three consecutive months, which is a big change from the increases seen in 2022 and much of 2023. Residential building permits were up 1.9% in December and a notable 6.1% year-over-year, according to the U.S. Census Bureau. While starts are down, completions are up significantly. Annual figures for 2023 showed existing home sales in December dropped to the lowest level since 1995, while the median price reached a record high. A record number of multifamily units delivered in calendar 2023. Apartment absorption remains strong, but annual rent growth is essentially flat. Real GDP increased by 3.3% in 4th quarter, driven by rising consumer spending, expanding exports and increased government expenditure. Despite solid employment growth and a reduction in inflation, we hold a cautiously optimistic projection, anticipating growth of another 1.5%. Look for inflation to stabilize around 2.5% by year's end. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

Markets Where 4Q Apartment Demand Outpaced Pre-COVID Norms

2026-03-04T06:52:53-06:00

U.S. apartment demand in 4th quarter was solid, and some markets saw significantly improved performances compared to pre-COVID norms. Geographically, most of these outperforming apartment markets were in the Sun Belt, which has seen solid population growth in recent years, bolstering household formation and demand for all types of housing. Most of these markets are also top performers for job growth nationwide and have seen sizable new completion volumes. These weren’t the only markets logging strong demand in 2023’s final quarter. In fact, most major U.S. apartment markets saw a big demand rebound in 4th quarter 2023 and, in fact, a final quarter demand performance that surpassed the long-term average. In these 12 markets, however, 4th quarter 2023 demand most severely outperformed the long-term demand norm (by at least 1,900 units), according to data from RealPage Market Analytics. @include('site.elements.media.image', ['fileId' => 19994, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Phoenix was one of the nation’s top apartment demand performers in calendar 2023, buoyed notably by absorption of nearly 4,300 units in the last three months of the year. In comparison, 4th quarter demand in Phoenix averaged less than 900 units in the decade leading up to the pandemic (2010-2019). The momentum this market managed to drum up in 2023 brought some relief after demand plunged in 2022. Driving the return of demand was a strong job market, as this is one of the few markets located outside of the South region to lead the nation in employment growth in the past five years. New supply volumes, however, were also nation-leading, and that full supply pipeline is scheduled to continue into 2024. Houston and Austin were the Texas markets that saw notable demand recovery at the end of 2023. Like Phoenix, these markets also were among the nation’s leaders for both job growth and new supply additions in the past five years. In fact, Austin also ranked...

Dallas Continues to Dominate in Job Gains

2026-03-04T06:52:53-06:00

After taking the number one spot away from New York last month, the Dallas-Plano-Irving metro division remained the top market for employment gains, adding 101,000 jobs to their economy in 2023. According to the latest data release from the Bureau of Labor Statistics (BLS), Dallas was the only market to gain 100,000 jobs or more for the year, followed closely by Los Angeles with a 95,800-job gain. Nine of the top 10 markets returned from November’s list with several changing places. Last month’s #2 – New York – fell to #7 in December with the Big Apple adding 61,300 jobs for the year. Philadelphia remained in the #3 spot with 81,100 jobs added, down just 2,100 jobs from November. Boston moved up from #7 to #4, gaining 77,900 jobs in 2023, an improvement from both November and last December. Atlanta ticked up one spot to #5 with 72,000 jobs gained, but their annual total was 27,600 less than in 2022. @include('site.elements.media.image', ['fileId' => 19971, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Houston slipped two spots to #6, gaining 70,100 jobs, followed by the aforementioned New York. Miami remained in the #8 spot in December with 50,600 jobs gained, about the same as November’s total but 6,600 less than December 2022. Las Vegas jumped into the top 10 at #9 with a gain of 45,800 jobs and Phoenix returned at #10 with 42,500 additional jobs. Altogether, the total number of jobs gained for the year-ending December for the top 10 markets was down 22,300 jobs from their collective total last month. However, the next 10 markets (#11-#20) saw their combined annual jobs gains increase by 12,800 jobs. As mentioned, only Dallas exceeded 100,000 jobs gained for the year while seven gained between 50,000 and 99,999 jobs, one more than last month. Seven markets reported annual job losses for the year, two less than last month as Denver and Detroit continue to struggle. Like annual job gains, the annual percentage change in employmen...

Asheville Apartment Inventory Jumps 50% in a Decade

2025-01-22T03:13:43-06:00

Since 2013, the total volume of apartments in Asheville, NC has surged by half. In the last decade, Asheville has added nearly 8,500 apartment units, bringing its total existing inventory count to about 25,300 units as of 4th quarter 2023. That marks a 50% jump in the last 10 years, accounting for one of the highest total inventory increases in the nation during that time frame, according to data from RealPage Market Analytics. And more supply is on the way in Asheville. As of 4th quarter 2023, another 2,600 units were under construction in Asheville, with about 1,740 of those units expected to deliver in calendar 2024 alone. That represents a more than 160% increase from 2023’s annual supply volume of about 650 units.

Top-Performing Apartment Demand Markets in 2023

2025-01-22T03:13:43-06:00

U.S. apartment demand rebounded in 2023, ending the year in decent shape. But out of the nation’s 150 largest apartment markets, only a handful logged annual demand of more than 8,000 units, according to data from RealPage Market Analytics. All but two of these markets are located in the South region of the country. Three of those high-demand markets were in Texas, where job growth has been solid in recent years. Houston was the nation’s apartment demand leader, absorbing over 15,600 units in calendar 2023. Austin logged demand for nearly 11,400 units, while Dallas absorbed about 10,200 units. Other South region markets with big apartment demand in 2023 included: Washington, DC and Charlotte (each with over 10,000 units), Atlanta and Nashville (with over 9,000 units) and Raleigh/Durham (8,700 units). The only two markets outside of the South to record big demand in the past year were Phoenix (over 12,000 units) and Minneapolis (nearly 8,700 units).

Our Economists’ Picks for Favorite Apartment Markets in 2024

2026-03-04T06:52:53-06:00

In calendar 2024, U.S. apartment supply could be the determining factor in the fundamental health of multifamily markets across the nation. The volume of new apartment supply hitting the market in 2024 is expected to be incredible at approximately 670,000 units, blowing past 2023’s already record deliveries of about 440,000 units. Other factors will also play a role in market-specific performance, like job growth, which has continued to outperform economists’ expectations, and consumer sentiment, which has improved, leading to increased demand for housing. But with record apartment supply in 2023 and another round that will beat those levels by 50% in 2024, markets where supply is more reasonable and less drastic will have an advantage. @include('site.elements.media.image', ['fileId' => 19893, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) With all that said, which markets do RealPage economists expect to outperform in 2024? @include('site.elements.media.image', ['fileId' => 19896, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Among the early favorites set to lead the nation in the near term, most are stable Midwest markets like Chicago, Cincinnati, Cleveland and Columbus, with Northeast metros Boston and New York also included. These are all markets that ended 2023 with occupancy above 94%. Average annual effective asking rent change was also well above national norms in calendar 2023, with Cincinnati, Boston and Chicago logging nation-leading rent growth just under 4%. Construction has also remained reasonable in these markets in 2023, and scheduled inventory growth for 2024 is relatively modest. Some markets that could have a surprising upside in 2024 include Houston, San Diego, San Jose and Washington, DC. In Houston, the supply to demand ratio has been relatively balanced recently, with supply ratios ranking below the national average. In fact, Houston could top the other Texas markets in the near te...

After Nearly Two Years, Apartment Demand Finally Returns to Akron

2025-01-22T03:13:43-06:00

After seven consecutive quarters of net move-outs, Akron’s apartment market finally recorded apartment demand for 292 units in 4th quarter 2023, according to data from RealPage Market Analytics. Among the nation’s 150 largest apartment markets, Akron was the only one to record net move-outs in seven of the previous eight quarters, marking – at least by this calculation – the most consistently poor demand performance nationwide. (Plenty of other markets recorded deeper net move-outs from more units, however.) Only 10 other markets nationwide recorded net move-outs in six of the last eight quarters, including California markets Riverside, Fresno, Santa Maria-Santa Barbara and Vallejo/Fairfield/Napa, Michigan markets Flint and Kalamazoo/Battle Creek, and also Crestview-Fort Walton Beach-Destin, FL, Providence-Warwick, RI-MA and Albuquerque, NM. Conversely, only six markets (among the top 150) survived 2022 and 2023 without a single quarter of negative demand.

College Town Apartment Markets Outperform U.S. Norms

2026-03-04T06:52:53-06:00

College town markets have generally been more resilient during downturn periods, such as during 2020 and early 2021, though they also offer less upside during boom periods, such as during late 2023 and 2022. @include('site.elements.media.image', ['fileId' => 19860, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) In an analysis of 25 college towns (listed below) that have a population less than 1 million residents, include the presence of a major college and are forecasted by RealPage Market Analytics, RealPage found that college towns tended to offer a more steady apartment market performance compared to the national norm. Additionally, college towns tended to experience higher apartment occupancy than the U.S. overall, as well as more stablity overall. As of 4th quarter 2023, occupancy in college towns ran 150 basis points (bps) above the national norm, on a weighted average basis. That delta has more than doubled since the pandemic. As of 4th quarter 2019 (the last full quarter before COVID-19) the delta between college town average occupancy and the national norm was only 60 bps. @include('site.elements.media.image', ['fileId' => 19859, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Part of that resilience undoubtedly comes from less supply pressure across college towns in general. The units under construction inventory ratio (construction as a percentage of total inventory) has historically run lower in college towns than the national norm. Across our 25 college towns, the units under construction inventory ratio averaged about 2.9% over the last five years, compared to about 4.5% nationwide. @include('site.elements.media.image', ['fileId' => 19861, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) However, the delta between the two has gotten larger over time, primarily as a result of more building nationwide, even as construction across college towns has remained relatively stea...

Strong Job Growth in Texas Spurs Household Formation

2025-04-21T16:42:11-05:00

While job growth in Texas has recently decelerated at about the same pace as the rest of the U.S., the employment market in the Lone Star state continues to surpass national standards. Texas generated 336,800 jobs in the year-ending November, increasing the existing job base by 2.7%, according to data from the Bureau of Labor Statistics. This was well ahead of the U.S. increase of 1.8%. Among individual markets, some of the strongest job growth nationwide has occurred in Texas metros specifically. In fact, out of 280 markets sampled nationally, Midland/Odessa ranked #15 for job growth in the year-ending November, while Dallas/Fort Worth ranked #20. Also ranking in the top quartile nationally for job growth in the past year were McAllen/Brownsville, Austin, San Antonio and College Station. Houston just missed the top quartile ranking at #80. Strong job growth tends to precede solid household formation, and apartment demand has been solid in Texas recently, especially in Houston, Austin and Dallas.

2023 Apartment Market By the Numbers

2026-03-04T06:52:53-06:00

Supply and demand constituted the primary storylines of 2023’s multifamily industry. The final quarter of 2023 marked a considerable rebound in apartment demand – but that still wasn’t strong enough to keep pace with massive amounts of new supply. @include('site.elements.media.image', ['fileId' => 19789, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '318']]) Some 129,015 units delivered across the top 150 markets tracked by RealPage Market Analytics in 2023’s 4th quarter. That pushed total deliveries in 2023 to 439,394 units. The onslaught of supply proved too much for the rebound in absorption despite demand for some 58,200 units in 4th quarter and 233,741 units in the 12-month period, a huge change from net move-outs from 123,290 units recorded in 2022. @include('site.elements.media.image', ['fileId' => 19788, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '211']]) As supply outpaced demand, occupancy contracted 30 points in the quarter and 90 points year-over-year. No surprise, the supply/demand imbalance also impacted operators’ pricing power. @include('site.elements.media.image', ['fileId' => 19790, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '211']]) In 4th quarter, rents contracted 1.3% but eked out a slight 0.2% increase in the year. With increased vacancies and tumbling rents, revenue across the top 150 markets also fell 1.6% in 4th quarter and 0.8% year-over-year. All in all, 2023 proved to be a transition year as demand rebounded, supply climbed, occupancy contracted, and rents and revenue dipped. In 2024, about 672,000 units are forecasted to deliver across the U.S., marking about a 53% increase from 2023’s record high supply.

South Region Contributes Most of Nation’s Record Apartment Supply

2025-01-22T03:13:43-06:00

While the volume of apartment supply coming from three of the nation’s four major regions has maintained relative consistency over the last decade, even amid a steady increase in overall building, the South region keeps on adding more and more apartment units. Nearly 440,000 apartment units completed across the U.S. in 2023, according to data from RealPage Market Analytics. Of those units, over 245,000 were built in the South. By comparison, less than 95,000 units came online in the West in 2023, and about 61,000 units and 38,000 units were completed in the Midwest and Northeast regions, respectively. Fast forward to now, when 672,000 units are forecasted to deliver in calendar 2024. Of that record rate, nearly 359,000 units are forecasted to complete in the South region in 2024, accounting for about 53% of the nation’s total. In the West, 184,000 units are scheduled in 2024, compared to 67,000 units and 63,000 units in the Midwest and Northeast, respectively.

2024 Apartment Supply Scheduled to Outweigh 2023

2026-03-04T06:52:53-06:00

While the big story for the U.S. apartment market for calendar 2023 has been record-breaking new apartment supply, calendar 2024 is poised to see an even bigger volume of deliveries. Back when apartment occupancy and rent growth were hitting record highs across the nation in 2021 and 2022, we saw a surge in multifamily permitting activity. As a result, 2023 logged a big increase in deliveries, with nearly 440,000 apartment units completed throughout the year, a 36-year high for the market. For 2024, scheduled completions in the U.S. total another 670,000 or so apartments, which blows past that record volume by about 50%. @include('site.elements.media.image', ['fileId' => 19702, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) The leasing environment operators were in when all those units were approved is looking very different now, with occupancy and rent growth at much more regulated levels, and demand just getting back on track after falling off notably. A big portion of the apartments delivered in 2023 came online in the South region of the U.S., and the stock set to deliver in 2024 is similarly targeted. Roughly 53% of the completions scheduled for 2024 are slated for the South, with more than 358,000 under way. Most of the big winners here are located specifically in Texas. South region markets with more than 20,000 units of supply set to deliver next year are Dallas (38,400 units), Austin (33,800 units), Atlanta (23,100 units), Houston (22,700 units) and Charlotte (21,100 units). All of these markets were also among the top 10 for deliveries in 2023. @include('site.elements.media.image', ['fileId' => 19704, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) The West region of the U.S. is expected to gain another 183,000 or so units, making up 27% of national apartment supply in 2024. West region markets expected to get big portions of supply in 2024 include Phoenix (33,800 units), Denver (24,900 units), Lo...

The Only Apartment Markets to Survive 2022 and 2023 Without Net Move-Outs

2026-03-04T06:52:53-06:00

Now that apartment demand appears to have rebounded to a fairly normal pace, we can look back at how various markets fared over the extreme demand swings in the last two years. The nation at large posted net move-outs for three consecutive quarters beginning in 2nd quarter 2022, followed by barely positive absorption in 1st quarter 2023. The trough of poor demand came in 3rd quarter 2022 when the U.S. recorded net move-outs from just over 90,000 apartment units in the July to September quarter, according to data from RealPage Market Analytics. @include('site.elements.media.image', ['fileId' => 19661, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) During that time, most of the nation’s major markets were also plagued with net-move outs, though there were inevitably demand leaders and laggards. Of the nation’s 150 largest apartment markets, virtually all recorded net move-outs in at least one quarter throughout 2022 and 2023. Six markets nationwide, however, managed to survive 2022 and 2023 without ever recording net move-outs. While demand underwhelmed at times in these markets, they far outperformed the rest of the nation when considering any demand at all a metric for success. @include('site.elements.media.image', ['fileId' => 19662, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) These markets include several pandemic darlings that captured, not only apartment demand, but the demographics to support it following the work-from-anywhere phenomenon in 2020 and beyond. In Charleston, demographics have been more homegrown, rather than influenced by remote workers. Charleston led the nation in job growth on a relative basis, growing its workforce 5.9% in the year-ending November 2023. Even the no. 2 market of Salinas, CA didn’t come close to Charleston’s stellar job growth during that time. Apartment construction has been elevated for several years running in Charleston, peaking in early 2022 but still running...

RealPage Economy Express Episode 18

2025-01-22T03:13:43-06:00

Episode 18: Will the Fed initiate rate cuts in 2024? In calendar 2023, roughly 440,000 new apartments were completed nationwide, the highest delivery rate ever recorded. Even more is scheduled to deliver in 2024, with nearly 1 million units under way. Despite challenges in demand, absorption rates in 2023 were impressive, reflecting the resilience and appeal of multifamily living. Projections for 2024 suggest even stronger demand performances could be ahead. The employment landscape appears promising, as 216,000 jobs were added in December, helping the U.S. maintain an unemployment rate of 3.7%. Recent trends show a decrease in job openings, suggesting a gradual slowdown in employment growth for 2024. Consumer sentiment experienced a significant turnaround in December, with the Index rising by 14%. This boost can be attributed to the labor market and improved perception of inflation trends. The Federal Reserve is closely monitoring inflation figures for potential adjustments to the Funds Rate. The question remains: Will the Fed initiate rate cuts in 2024? For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

Renter-Age Population Grew Fastest in These Markets

2025-01-22T03:13:43-06:00

From 2021 to 2022, the age of 20-34-year-olds grew by nearly 700,000 residents, according to the latest data from the U.S. Census Bureau. That surge in 20-34-year-olds – a key demographic in apartment renter households – accounted for a 1% increase year-over-year. In several small markets, however, the growth rate of young adults surged well beyond the national norm. The small inland Florida market of Lakeland grew its young adult population 5.5% from 2021 to 2022, accounting for the addition of 7,500 residents. Provo-Orem, UT added over 9,500 young adults, translating to a growth rate of 5.4% year-over-year. Boise, City, ID and Cape Coral-Fort Myers, FL grew their young adult population about 4% each from 2021 to 2022. Huntsville, AL; McAllen/Brownsville, TX; and Fayetteville-Springdale-Rogers, AR-MO all grew their 20-34-year-old population about 3.5% year-over-year. Several of these markets – Provo/Orem, Boise, Huntsville and Fayetteville – are home to a major state university, often keeping a healthy dose of young adults in the renter pool in those areas.

December 2023 Pre-Lease Rate Tops 40%

2026-03-04T06:52:53-06:00

As expected, the Fall 2024 pre-lease rate surpassed the 40% mark in the final month of 2023. As of December, 41.2% of beds at the core 175 universities tracked by RealPage have been claimed for the Fall 2024 academic year. That milestone was largely predicted as the first three months of the pre-lease season – October, November and December – generally mark the strongest month-over-month gains before leveling off to a slower and steadier pace after the new year. December 2023’s reading registers just 10 basis points (bps) above December 2022’s reading of 40.1% of beds pre-leased, according to data from RealPage Market Analytics. That is perhaps a further indication that while student housing performance is still at or near record high performance, the pace of outperformance has slowed. The first three months of the Fall 2023 pre-lease season marked very strong leasing momentum – the strongest on record by most measurements – but then a notable leveling out occurred after January. RealPage expected that trend to continue again in Fall 2024, even if this year’s leasing momentum had already topped last year’s high performance. @include('site.elements.media.image', ['fileId' => 19674, 'attributes' => ['border' => '0']]) Across distance from campus, student housing product is tightly clustered in terms of pre-lease performance. Properties within a half mile to one mile of campus were the relative leaders in December with 41.6% of beds leased, but that was closely followed by a 41.3% reading at properties within a half mile of campus. Properties more than one mile from campus were 40.3% leased as of December. While it’s still too early to point to true pre-lease laggards, the schools with the poorest pre-leasing through December tended to be satellite schools (such as within the University of California system) or commuter schools (such as University of Texas at Dallas). Both of those types of schools generally experience the bulk of leasing activity in the spring se...

Apartment Markets Where Occupancy Persisted in 2023

2025-01-22T03:13:43-06:00

While most apartment markets saw occupancy decline in calendar 2023, a handful of metros held their ground, relatively speaking. In the U.S. overall, apartment occupancy dropped 80 basis points (bps) year-over-year, coming down from 2022 peaks and returning to its long-term normal range. Decline was widespread across the U.S. and in fact, among the nation’s largest 50 apartment markets, San Francisco was the only market to see occupancy increase during the year, with the rate inching up 10 bps, according to data from RealPage Market Analytics. San Francisco was one of the worst-hit markets during the initial wave of the COVID-19 pandemic, and occupancy dropped as low as 92.2% in 2021. As of December, the rate was back up to 95%. Some other markets saw occupancy nudge down modestly in 2023. The setback was negligible at 10 bps in San Jose and Chicago, while markets with a 20-bps decline in 2023 included West Palm Beach, Richmond and Minneapolis. A modest 30-bps decline was seen in Seattle, Virginia Beach, Pittsburgh and Washington, DC. Among those markets, December occupancy is still above 95% in San Jose, Chicago and Virginia Beach.

The U.S. Job Market Continues to Outpace Expectations

2026-03-04T06:52:53-06:00

U.S. job growth remained stronger – and unemployment was lower – than economists were projecting in December. The labor market has remained robust despite 11 interest rate hikes by the Federal Reserve over the past two years to cool inflation. @include('site.elements.media.image', ['fileId' => 19555, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Employers added roughly 216,000 workers to payrolls in December 2023, according to the Bureau of Labor Statistics (BLS). That was an improvement over the 173,000 jobs gained in November, but below the monthly gain of 262,000 jobs in September. Still, that recent job gain came in far above what economists were projecting (+160,000 jobs). Of note: The job counts for October and November were revised considerably lower. Downward revisions to October 2023 data showed 45,000 fewer jobs were added than previously reported, down to 105,000 positions. The November 2023 growth number was also revised down, decreasing by 26,000 jobs to a total of 173,000 positions. With these revisions, employment gains in October and November combined were 71,000 jobs lower than previously reported. @include('site.elements.media.image', ['fileId' => 19554, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Recent job gains were well below the monthly average of around 399,000 jobs added in 2022 but were ahead of pre-pandemic norms. From 2015 to 2019, the U.S. economy added an average of roughly 190,000 jobs each month. On an annual basis, the nation gained nearly 2.7 million jobs in December 2023. Although that was the weakest annual gain since March 2021, it was above the average of around 2.4 million jobs added annually from 2015 to 2019. The U.S. economy has recovered all the net jobs lost during the COVID-19 pandemic. As of December, the nation had nearly 4.9 million more jobs (+3.2%) compared to the pre-pandemic employment level from February 2020. Jobs by Industry Job growth in Dec...

Key Forecast Themes for 2024

2026-03-04T06:52:53-06:00

Overall, the 2024 forecast calls for continued – albeit slowing – economic growth. Still, the improvement in demand throughout 2023 will likely carry forward into 2024 even with moderating economic growth. Demand should be boosted by strong wage growth and a prolonged renter lifecycle (i.e., less attrition to single family housing due to limited available inventory) among other factors. Supply will make the main deterrence for market-level rent growth and even rent growth at the national level. From that perspective, expect a close one-to-one relationship, where higher supply = weaker rent growth and lower supply = stronger rent growth. In lieu of rent growth, the things that will likely fuel much of the 2024 outlook will be focus on occupancy through means of modest new lease rent growth and increased emphasis on retention. It’s difficult – if not altogether impossible – to point towards any larger influence in the coming 12 months than supply. Supply’s relationship on rent growth has been well-documented throughout 2023, and the impact of supply on rent growth is a clearly defined trend. @include('site.elements.media.image', ['fileId' => 19477, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '481']]) The good news is that this mounting wave of supply is being met with considerable improvement in absorption. After a tumultuous 2021 to 2022 stretch – two years that recorded both the strongest and weakest absorption figures in two decades – the 2023 pace of absorption seems to have stabilized. About 250,000 units were absorbed on net in 2023, more or less matching the U.S. average dating back to the 2010s. Perhaps most impressive though was the strength of demand in 4th quarter 2023 in particular. The final 90 days of the year came in with the third-strongest absorption total for that quarter on record. @include('site.elements.media.image', ['fileId' => 19478, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) This very s...

Apartment Supply Surges to Highest Levels Since the Mid-1980s

2026-03-04T06:52:53-06:00

Apartment supply jumped to a 36-year high in 2023, resulting from construction projects that started back when occupancy rates and rent growth were around record highs. But by the time those projects completed, their operators faced a very different leasing environment. Nearly 440,000 apartment units completed in 2023, and even more are scheduled to deliver in 2024, according to RealPage Market Analytics. After that, completions will dramatically plunge due to the recent slowdown in starts linked to higher financing costs and softer fundamentals. High supply is great news for renters and a hurdle for investors. Renters suddenly have far more options than they’ve had in recent years, and that’s putting downward pressure on rent growth. Rents flattened in 2023 following back-to-back years of high rent growth. The upside: Following a sluggish 2022, apartment demand rebounded in 2023 thanks to cooling inflation (including rents) and improving consumer confidence. In particular, 4th quarter – normally a seasonally slow leasing period – turned out to be a surprise bright spot. Net absorption totaled 58,200 units, meaning there were 58,200 more occupied apartments than in the previous quarter. That was the third-strongest 4th quarter in 25 years, topped only by 2020 and 2021 – and by a wide margin. @include('site.elements.media.image', ['fileId' => 19486, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Net absorption in calendar 2023 came in at 234,000 units, just one-third of the blistering all-time high set in 2021, yet more similar to pre-COVID norms. While that’s a strong demand tally by any measure, it wasn’t enough to keep pace with supply surging to the highest levels since 1987. As a result, apartment occupancy dropped 80 basis points (bps) year-over-year to 94.1% – still within the long-term normal range, even if much lower than the peaks of 2021-22. @include('site.elements.media.image', ['fileId' => 19487, 'attributes' => ['border...

Apartment Rent Growth Leaders for Calendar 2023

2024-01-17T02:00:05-06:00

While about half of the nation’s largest apartment markets were logging rent cuts by the end of 2023, a handful of major metros are still seeing price increases. Most of the big markets that have avoided rents cuts are locations with manageable supply activity over the past five years or so. And many are located in the Midwest, which has maintained stable occupancy levels recently while most regions struggle to maintain apartment demand equal to completion volumes. Among the nation’s 50 largest apartment markets, Cincinnati was the national leader in apartment rent growth in 2023, with growth of 3.9%, according to data from RealPage Market Analytics. Annual increases also topped 3% in Boston, Chicago and Newark. Logging growth near 3% were a handful of Midwest markets (St. Louis, Milwaukee, Cleveland and Indianapolis) as well as Anaheim and Washington, DC. Anaheim, the only West region market on the list, surpassed nearby Los Angeles for average rental rates in September and, as of December, is now commanding rents $50 above Los Angeles prices.

Apartment Demand Normalizing in New York

2025-01-22T03:13:43-06:00

After a few uncertain years, New York’s apartment market seems to be normalizing once again. When the COVID-19 pandemic hit and the work-from-home trend settled in, apartment demand in New York took a significant hit, as people moved out of the city for more affordable living. At its low point in 1st quarter 2021, there were nearly 70,000 fewer occupied units in New York than there were before the pandemic began. The rebound in 2021 and 2022 was equally notable, as apartment operators implemented concessions and rent cuts – some as deep as 30% – to attract the renter base back to the city. As consumer sentiment improved and the economy leveled out, demand fell back to more normalized trends. As of 3rd quarter 2023, there were over 46,000 more occupied units in New York than there were four years ago. In that same time frame, over 71,000 new units have completed. For more information on the state of the New York apartment market, including forecasts, watch the webcast Market Intelligence: 2024 New York Apartment Outlook.

These U.S. Markets Added the Most Jobs in the Past Five Years

2026-03-04T06:52:53-06:00

After drastic changes in the U.S. job market over the past few years, employment has gotten back on track and job growth is solid. In fact, a handful of large markets are leaving their troubles in the dust, adding new jobs at a very quick pace. The COVID-19 pandemic transformed the way U.S. workers engaged with the office. Many jobs were lost, especially retail and food service positions, as the country closed in attempt to stop the virus from spreading. Many other jobs became work-from-home positions and employees migrated toward less expensive, less urban locales, to save money as the economy floundered and uncertainty loomed. @include('site.elements.media.image', ['fileId' => 19390, 'attributes' => ['border' => '0', 'width' => '1458', 'height' => '900']]) But the recovery of 2021-2023 has been drastic. As of November, the U.S. employs 4.7 million more people than it did in February 2020. The makeup of that employment has changed, as about 160,000 Leisure and Hospitality Services jobs never did come back into the fold. Meanwhile, other job sectors thrived, including Professional and Business Services, Education and Health Services and Trade, Transportation and Utilities, which are now 1 million jobs or more ahead of pre-pandemic norms. The job market has also shifted geographically. In the past five years, the biggest job gains have occurred in the South region. These are markets that benefited from an influx of population when the work-from-home trend started, as employees were drawn to lower costs of living and more affordable rents or home prices. Not surprisingly, a big block of these markets are also forecasted to log sizable apartment demand activity in 2024. The Dallas/Fort Worth area is the clear winner for job growth in the past five years, with both sides of the metroplex showing up in the list of top 10 job growth markets. Dallas added over 450,000 jobs since November 2018, increasing its existing employment base by 17.1%, while the much smaller Fo...

Dallas Overtakes New York in Job Gains

2026-03-04T06:52:53-06:00

For the first time since the pandemic recovery began, New York has fallen from the top spot for job gains among RealPage’s top 150 markets. According to the latest data release from the Bureau of Labor Statistics (BLS), the Dallas-Plano-Irving metro division produced more jobs in the year-ending November than the New York-White Plains metro division (103,500 jobs versus 90,300 jobs). The combined D/FW MSA outpaced the New York-Newark-Jersey City MSA considerably, when adding the 36,200 jobs created in Fort Worth-Arlington in the past year. The largest difference is that Dallas experienced job gains in every industry category, while New York’s strong gains in the Education and Health Services sector were partially offset by losses in the Information, Transportation/Trade and Professional Services sectors. Nine of last month’s top 10 job gain markets returned in November with only three remaining in the same spot as in October. @include('site.elements.media.image', ['fileId' => 19379, 'attributes' => ['border' => '0', 'width' => '1023', 'height' => '721']]) Both Dallas and New York saw slowing job gains from October and the year before but New York’s decline in new jobs was triple the decline in Dallas. Philadelphia remained in the #3 spot in November with a gain of 83,900 jobs, close to October’s total but 25,500 fewer than last year. Houston and Los Angeles also retained their positions from last month at #4 and #5, gaining a similar number of new jobs (about 77,700). Atlanta moved up a spot to #6, gaining 76,500 jobs in the year-ending November, almost 11,000 more than in October but 28,100 less than last November. Boston was displaced one spot by Atlanta to the #7 position with 68,600 jobs gained, about 5,600 fewer than last month but only 3,700 less than last year. Miami moved up one spot to #8, gaining 49,800 jobs for the year and adding 6,100 more jobs than in October. Washington, DC slipped one spot to #9, slowing by 13,300 jobs from October to total 4...

Multifamily Permitting Still Trending Down

2026-03-04T06:52:53-06:00

The pace of multifamily permitting is continuing its declining trend that began in mid-2022. The November seasonally adjusted annual rate (SAAR) for multifamily permits fell 9.6% from October’s rate and 21.3% from last year to 435,000 units. That figure is well below the annual total for not seasonally adjusted multifamily permits of 513,600 units. However, the large difference is more a matter of timing than methodology. As seen in the chart below, the SAAR for multifamily permitting peaked mid-2022 while the unadjusted sum peaked about 5-6 months later. @include('site.elements.media.image', ['fileId' => 19358, 'attributes' => ['border' => '0', 'width' => '1463', 'height' => '876']]) The SAAR is calculated by seasonally adjusting the monthly figure and multiplying by 12, while the unadjusted total is just that, the sum of multifamily units permitted in the roughly 20,000 permitting places tracked by the Census Bureau. Lagging unadjusted permitting by five months aligns both trend lines. In other words, the SAAR leads “actual” multifamily permitting by 5-6 months. Multifamily starts are from a different survey but have a similar but shorter lead-lag difference of about three months. Total unadjusted starts were 458,800 units compared to the SAAR of 404,000 units. Meanwhile, the SAAR for single-family permitting was almost unchanged from last month but 22.8% higher from last year at 976,000 units. Single-family starts surged 18% from October’s annual rate to 1.143 million unit and were up 42.2% from last November. Completions of multifamily units jumped 26.5% from October to 472,000 units and increased 9.5% from last November. The number of multifamily units under construction was unchanged from October at 988,000 units but was up 7.9% from last year. Additionally, the number of multifamily units authorized but not started was also unchanged at 135,000 units in November but was down 11.2% from one year ago. Single-family completions were down 3.2% for the mon...

Top RealPage Analytics Blogs of 2023

2026-03-04T06:52:52-06:00

As expenses rise, demand normalizes, supply skyrockets and elements of the housing market remain uncertain (interest rates, permitting, affordability concerns), 2023 was yet another year unlike any other in the multifamily industry. Through it all, our team of economists, analysts and real estate writers made data the cornerstone of all our RealPage Analytics blogs. In 2023, here were the most-read stories on the RealPage Analytics blog. @include('site.elements.media.image', ['fileId' => 19264, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '132']]) We started the year off with a bang, which may have been the sound of a shoe dropping, come to think of it. With the final 2022 data releasing in the early days of January 2023, we learned that net apartment absorption ended in negative territory for calendar 2022, mostly driven by evaporated new-lease demand. Our quarterly data updates were a mainstay on our list of top read blogs of 2022. First, in 1st quarter when demand tepidly returned, then again in 2nd quarter when absorption really rebounded and again in 3rd quarter when demand looked downright normal. On that note, expect a year-end 4th quarter 2023 update in early January. @include('site.elements.media.image', ['fileId' => 19265, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '132']]) We’ve dissected the current apartment supply wave in a number of ways. In October, RealPage Chief Economist Jay Parsons considered apartment supply through the lens of how each market's current supply peak compared to its previous peaks over the last 20+ years, giving a useful benchmark for past absorption capacity. @include('site.elements.media.image', ['fileId' => 19271, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '132']]) In October, RealPage Senior Director of Research & Analysis Carl Whitaker explained how and why our 2024 forecast was changing in light of some data updates and explained RealPage’s expectations...

The Nation’s 10 Most Affordable Large Apartment Markets

2025-01-22T03:13:43-06:00

It’s no surprise that the most affordable major apartment markets in the country are in the South and Midwest regions. Of the nation’s 50 largest markets, six of the most affordable were in the Midwest and four were in the South. Taking the top three slots on the most affordable list are South region markets, with Greensboro/Winston-Salem taking the #1 spot with average effective asking rents of $1,209 in November, according to RealPage Market Analytics. That’s nearly $600 a month less than the national average ($1,805). Memphis ($1,222) and San Antonio ($1,241) were also under the $1,250 mark. Despite their relative affordability, those three South region markets ranked among the nation’s 10 weakest occupancy performances, with the lowest reading of 91.2% in San Antonio, followed by Memphis (#2 at 92.1%) and Greensboro/Winston-Salem (#8 at 92.6%). Midwest markets comprised a big slice of the most affordable rents list, ranging from $1,257 in Cleveland to $1,310 in Columbus. Rounding out the nation’s 10 most affordable large markets was Houston, with average monthly rents at $1,353 in November. At the opposite end of the spectrum, New York had by far the nation’s highest monthly asking rents of $4,501 and the tightest occupancy rate of 97%.

What We Got Right - and Wrong - About the Apartment Market in 2023

2026-03-04T06:52:52-06:00

Forecasting involves taking a series of data points, running them through models (both qualitative and quantitative), then sharing what is ultimately a best guess as to what a trend means and/or what a future expectation is. But it’s not an exact science. We’re just making best-informed guesses based on data and gut feeling. That said, let’s look back at some predictions we made for 2023 and see where we got it right, where we got it wrong and where results were mixed. In January, we forecasted that three types of markets were poised to outperform in 2023, including college towns, high job growth markets and affordable, low beta markets. Meanwhile, we also forecasted that three types of markets could be positioned to struggle in 2023, namely high-supply markets, markets where loss to lease vanished and a select few lifestyle markets. Let’s grade our 2023 predictions. College Towns College towns did indeed outperform this year thanks to resilient economies, improved student demand and limited supply pressure. Some good examples include Madison, WI, Lexington, KY and Lincoln, NE (#5, #6 and #7 in the country for year-over-year effective asking rent change in 2023). Champaign-Urbana, IL, College Station, TX and Knoxville, TN are other examples of really strong markets with rent growth rates around 4% in 2023. It's probably not a stretch to think this college town profile continues to outperform well into 2024 (though we're seeing student demand normalize from the peak 2022/early 2023 period). @include('site.elements.media.image', ['fileId' => 19255, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Affordable, Low Beta Markets The Midwest is enjoying its moment in the sun as low supply and relative affordability provide a high floor for those local markets. Some examples of affordable, low beta markets include Wichita, KS (lowest average rent among major markets in the U.S.), Youngstown, OH, Springfield, MO, Tulsa, OK and Champaign-Urban...

Elevated Apartment Supply in Salt Lake City Weakens Market Fundamentals

2026-03-04T06:52:52-06:00

Salt Lake City has historically been an outperforming apartment market, but fundamentals have weakened in recent months due to mounting supply volumes. No other major apartment market in the U.S. added more units on a relative basis than Salt Lake City in the year-ending 3rd quarter 2023. And next year's supply wave will be even bigger. Although demand has been solid, it hasn’t been enough to keep pace with supply, pushing occupancy and rents down. Salt Lake City, in northern Utah, is the state capital. The area is bounded by the Great Salt Lake to the northwest, the Wasatch Range to the east, the Oquirrh Mountains to the west and the Provo-Orem metro area to the south. The Salt Lake City/Ogden/Clearfield metro area has a population of nearly 2 million and the apartment market had roughly 129,500 existing units as of November, making it the 46th largest apartment market in the nation, according to RealPage Market Analytics. @include('site.elements.media.image', ['fileId' => 19221, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Apartment completions in Salt Lake City have been soaring. The market added a record-high delivery volume of more than 7,600 units in the year-ending 3rd quarter 2023. Those completions grew existing stock 6.4%, triple the national norm and the most rapid expansion pace among the nation’s 50 largest apartment markets. For perspective, Salt Lake City added an average of roughly 3,500 units annually over the past 10 years and an annual average of 2,300 units over the past 20 years. Apartment construction is scheduled to continue at a rampant pace in Salt Lake City. Completions in the coming year are expected to rise 57% above the recent volume, to nearly 12,000 units in the year-ending 3rd quarter 2024, setting a new record for the market. That supply volume will grow the market’s existing stock 9.4%, the fourth-fastest expansion among major markets, behind only Austin-Round Rock (11%), Raleigh/Durham (9.9%) an...

Apartment Revenue Loss Deeper Than 5% in Myrtle Beach

2025-01-22T03:13:42-06:00

After logging some of the best revenue growth nationwide throughout much of 2021 and 2022, the Myrtle Beach apartment market is now losing returns at some of the worst rates in the country. The small Myrtle Beach-Conway-North Myrtle Beach, SC-NC market lost 5.6% in revenue in the year-ending November, according to data from RealPage Market Analytics. That was much worse than the revenue loss of 0.8% seen in the nation overall during the past year and it was a far cry from the annual gains near 24% Myrtle Beach was recording in February 2022. Much of the market’s recent revenue decline was seen on the rent side of the equation, with the market logging annual same-store effective asking rent cuts of 4% in the year-ending November, while the occupancy decline was softer at 160 basis points. This is a common theme in the small boomtown markets that saw increased demand during the work-from-home phase of the COVID-19 pandemic. Looking at longer-term trends, nearly 20% of this market’s existing inventory base of about 47,400 units were built in the past five years. While employment growth has also been significant in that time frame – with an increase of 13.9% in total employment – that wasn’t quite enough to keep up with new apartment deliveries. The impact of new supply may continue to hurt the market in the near term, but once those deliveries burn off, fundamentals are expected to moderate at a healthy pace.

Consumers Feeling More Confident, Inspiring Apartment Demand

2026-03-04T06:52:52-06:00

While the U.S. economy has been on good footing for a while now, consumer confidence didn’t turn around until recently, and that sentiment has boosted apartment demand. Consumer confidence and apartment demand trend together. When consumers feel good about the economy, apartment demand makes notable strides. Likewise, in times of perceived trouble, the human reaction is to hunker down until the storm clears, dampening apartment absorption. In 3rd quarter, the U.S. apartment market absorbed a little over 90,800 units, according to data from RealPage Market Analytics. While that was below some of the quarterly demand tallies from the decade leading up to the COVID-19 pandemic, positive demand in 2023 is a notable turnaround from the net move-outs seen throughout much of 2022, when consumer sentiment hit a record low. @include('site.elements.media.image', ['fileId' => 19466, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) The University of Michigan’s Consumer Sentiment Index is a monthly survey that measures how Americans feel about spending money and the confidence they have in the future of the economy. This measure increased steadily between 2011 and 2015, then plateaued from 2016 to 2020 before plunging with the spread of the COVID-19 pandemic, which effectively ended the nation’s longest economic expansion on record. After that record-breaking decline in consumer sentiment, the economy recovered in 2021 as vaccines were distributed and federal relief was granted, causing a short-lived upturn. In 2022, consumer sentiment hit near 30-year lows as inflation climbed to a 40-year high and the Federal Reserve started hiking interest rates to combat that increase. While the economy was actually in good standing, it didn’t feel that way to consumers, who were paying more and more in interest rates throughout the year. But 2023 saw another turnaround for consumer confidence, as inflation has eased and the future looks more stable. While cons...

Insurance Costs Have More Than Doubled in the Apartment Sector

2025-01-22T03:13:42-06:00

Apartment operators are now paying more than double the price of insurance than they were before the COVID-19 pandemic. While most all operational expenses have increased in recent years, the hike in insurance costs has been the most extreme. Back in the days before the initial wave of the pandemic, insurance costs were hovering at about $30 per unit per month, according to data from RealPage Market Analytics. As of November 2023, apartment operators are now paying an average of about $65 per unit per month. That’s an intense increase of 119% during that four-year time frame. Some have attributed the rising cost of insurance to crime or natural disasters fueled by climate change. Among the nation’s largest 50 apartment markets, the metros seeing the biggest increases in insurance costs since 2019 are mostly in Florida (Tampa, Miami, West Palm Beach and Jacksonville) and California (San Jose, San Francisco, Anaheim and Sacramento), where natural disasters have indeed made headlines in recent years. Outside of those states, however, Cleveland and Memphis also ranked as markets with extreme insurance increases in the past four years.

Six Neighborhoods Building the Most Apartments in the U.S.

2026-03-04T06:52:52-06:00

Apartment construction is at a decades-long high, as well reported by a number of metrics. Dallas, New York City and Phoenix all have over 50,000 units under construction as of 3rd quarter 2023 and another dozen markets have more than 20,000 units under construction. Zooming in to the neighborhood level, a handful of submarkets across the U.S. have more than 10,000 units under construction as of 3rd quarter 2023. The construction boom happening in these six submarkets outpaces that of most major markets. Two New York submarkets claim some of the fullest construction pipelines in the nation, including nearly 20,000 units underway in Brooklyn. Still, nearly 20,000 units coming online in a submarket with about 482,000 existing units translates to a relatively manageable inventory jump of just about 4%. Similarly, in Queens, the 10,700 units underway will grow total inventory in that submarket just under 4% as Queens has about 280,000 existing units. Neighboring Jersey City had about 12,000 units underway as of 3rd quarter, which will grow total inventory about 15% in that submarket of about 77,000 units. Phoenix, meanwhile, has made plenty of headlines about its unprecedented construction wave. RealPage forecasted that Phoenix will be the No. 2 market for apartment supply in 2024, trailing only Dallas. A good chunk of that 2024 supply will come online in Phoenix’s Avondale/Goodyear/West Glendale submarket. The more than 13,500 units under construction will grow total inventory nearly 58% in Avondale/Goodyear/West Glendale – a submarket with about 23,500 units today. That nearly 60% inventory jump in Phoenix’s Avondale/Goodyear/West Glendale area marks the most prolific ratio of growth among these six submarkets. Though the units underway in two others – Allen/McKinney in Dallas and Central Nashville – will grow existing inventory by about one-third. Nearly 11,000 units were underway in Allen/McKinney at the end of 3rd quarter – in a submarket with about 32,000 ex...

RealPage Economy Express Episode 17

2025-01-22T03:13:42-06:00

Episode 17: What’s in store for 2024? With high mortgage rates and limited inventory, pending home sales declined 1.5% in October, according to the National Association of Realtors. Residential construction spending increased 0.6% in October, the U.S. Census Bureau reports. The U.S. economy added 199,000 jobs in November, indicating healthy growth. Wages were up 4% year-over-year, adding money to employee pockets but also raising inflation concerns. The consumer sentiment index surged by 13% in December, a positive sign that Americans are feeling good about the economy. Retail sales showed a 0.3% increase in November, boosted by the holiday shopping season. The Consumer Price Index was up by 3.1% in the past year, notably below recent norms. The Fed is holding the key interest rate steady and indicated plans for slow rate cuts in 2024, aligning with easing inflation and stable economic conditions. Looking ahead to 2024, the economic environment appears to be a mix of robustness and obstacles. Recent trends suggest a slowdown rather than a recession in the coming year. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

New York’s Small Apartment Markets Prove Resilient

2025-01-22T03:13:42-06:00

It’s easy to lose sight of New York state’s smaller markets in light of the more prominent New York City, which accounts for 10% of the entire nation’s apartment stock. Still, the state is home to several small markets with remarkable resilience in the face of increased vacancies across the U.S. As of November, Albany, Buffalo, Nassau County, Rochester and Syracuse all remain easily above the essentially full mark with occupancy ranging from 95.8% to 97.2%, in line with or above the Northeast region average (95.9%) and the U.S. norm (94.2%). The strongest performer was Rochester (97.2%), according to RealPage Market Analytics. The state’s relative underperformer, Albany, trailed with occupancy at a still solid 95.8%. Occupancy contracted across four of the five markets month-over-month and year-over-year. On an annual basis, occupancy in Buffalo backtracked the most severely, down 120 basis points. In Nassau County, alternatively, occupancy tightened 40 bps in November, ranking #5 among of the RealPage 150 and one of only 34 markets to strengthen occupancy month-over-month. On an annual basis, Rochester proved to be a winner as occupancy tightened 40 basis points, another top five performance and one of only 10 markets of the RealPage 150 to record growth. Each market recorded strong occupancy performance despite inventory expanding anywhere from 0.3% to 1.3% in the year-ending 3rd quarter 2023. At the same time, all five of these markets recorded net move-outs on an annual basis, with the worst performance in Buffalo (-720 units). Albany recorded the strongest performance among the group, though still negative, with net move-outs from 195 units.

Student Housing Pre-Leasing Hits Early High for Fall 2024

2026-03-04T06:52:52-06:00

Another month’s worth of early data for the Fall 2024 pre-lease season shows that a record number of students are rapidly leasing beds. As of November, 28.8% of beds at the core 175 universities tracked by RealPage have been claimed for the Fall 2024 academic year. Not only is that an all-time high for a November reading in the RealPage data set, but it is also the highest October-to-November jump on record. From October to November, a whopping 17% of student housing beds were leased across the core 175 universities tracked by RealPage, slightly outpacing last year's October-to-November jump of 16.9%. A typical October-to-November jump accounted for about 10% to 14% of student housing beds leased. Removing the last two years of record demand, a previous November pre-lease reading stood closer to 20%, according to data from RealPage Market Analytics. A couple of schools – including several of Fall 2023’s top performers – have already pre-leased over two-thirds of their student housing beds as of November. Tennessee, Purdue, Clemson, Arkansas and Wisconsin – Madison have all pre-leased about two-thirds of the privately owned student housing stock as of November. @include('site.elements.media.image', ['fileId' => 19130, 'attributes' => ['border' => '0']]) Rent growth, meanwhile, was still growing at a fast pace as of November but showed some signs of moderating from last year’s all-time high. Rent growth readings early in the pre-lease season can still be choppy and heavily dependent on property. RealPage data showed that same-store effective asking rents grew 7% in the year-ending November 2023, compared to 8.7% in November 2022. Rent growth was strongest in properties more than one mile from campus, though that trend can (and likely will) reverse in coming months. Still, rent growth readings have already come down across all distances from October’s record rates.

U.S. Inflation Continues to Ease in November

2025-01-22T03:13:42-06:00

Inflation continued to moderate in November, indicating that the Federal Reserve’s efforts to put the brakes on consumer price increases by raising interest rates is working. The price of goods and services paid by U.S. consumers rose 3.1% in the year-ending November, according to the Consumer Price Index (CPI) for All Urban Consumers measured by the Bureau of Labor Statistics. That was marginally lower than the 3.2% annual rate in October and marginally above the recent low of 3% from June. Annual inflation as of November was in line with economists’ expectations (3.1%) but still notably beyond the Federal Reserve’s target of 2%. However, inflation has cooled considerably since reaching a 40-year high of 9.1% in June 2022. For comparison, the inflation rate averaged 1.6% annually in the five years leading up to the COVID-19 pandemic (2015-2019). Core inflation, which strips out volatile costs of food and energy, was unchanged on a year-over-year basis remaining at 4% in October and November. Still, that was the smallest annual increase since September 2021. The energy index fell 5.4% in the year-ending November, with lower gas prices (-8.9%) contributing to that downturn. The cost of shelter, which is keeping the overall inflation rate high, rose 6.5% from a year ago. Still, that was the slowest increase in over a year. However, the shelter index has a well-documented lag effect. Excluding the cost of shelter, consumer prices were up just 1.4% year-over-year in November.

U.S. Continues to Add Jobs at a Healthy Pace

2026-03-04T06:52:52-06:00

U.S. employers added more jobs than expected in November, with a lift from actors and auto workers returning to work following strikes. Despite efforts by the Federal Reserve to cool the economy, job growth remains strong, and unemployment remains low by historical standards. @include('site.elements.media.image', ['fileId' => 19030, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Employers added roughly 199,000 workers to payrolls in November 2023, according to the Bureau of Labor Statistics (BLS). That was an improvement over the 150,000 jobs gained in October, but below the monthly gain of 262,000 jobs in September. Still, that recent job gain was above what economists were projecting (+180,000 jobs), inflated by the return of roughly 40,000 formerly striking auto workers and actors. Of note: Downward revisions to September 2023 data showed 35,000 fewer jobs were added than previously reported, down to 262,000 positions. The October 2023 growth number remained unchanged at 150,000 jobs. @include('site.elements.media.image', ['fileId' => 19029, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Recent job gains were well below the monthly average of around 399,000 jobs added in 2022 but were in line with pre-pandemic norms. From 2015 to 2019, the U.S. economy added an average of roughly 190,000 jobs each month. On an annual basis, the nation gained nearly 2.8 million jobs in November 2023. Although that was the weakest annual gain since March 2021, it was above the average of around 2.4 million jobs added annually from 2015 to 2019. The U.S. economy has recovered all the net jobs lost during the COVID-19 pandemic. As of November, the nation had over 4.7 million more jobs (+3.1%) compared to the pre-pandemic employment level from February 2020. Jobs by Industry Job growth in November was seen in eight of 11 major industry sectors. The most notable job base expansion was in the Education and Health Servic...

Comparing Suburban Apartments by Price Point

2026-03-04T06:52:52-06:00

While we often compare suburban apartments to urban apartments for various analyses, that can be limiting when considering that suburban apartments make up the vast majority of rental housing stock. In fact, more than 85% of apartment properties across the country fall within suburban submarkets. Thus, we have bifurcated suburbs into two categories – high rent suburbs and low rent suburbs – to consider multifamily in a deeper way. Suburban product with an average effective rent less than the market average makes up more than half of national housing stock among the nation’s top 50 apartment markets, according to RealPage Market Analytics. Low rent suburbs make up about 58% of total existing units over the last decade. Meanwhile, a little more than a quarter of market-rate multifamily housing units are in higher rent suburbs, averaging over 27% in the last decade. Finally, urban cores garner the final fraction of existing units, averaging more like 14.5% over the last decade. @include('site.elements.media.image', ['fileId' => 19014, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Almost all urban core submarkets exhibit a rent well above their home market average. As a result, the suburban comparison will inherently skew more toward submarkets where the average rent is below a market norm. Comparing supply demonstrates how new supply largely skews towards suburban submarkets with higher rents. Arguably the most noteworthy difference between higher rent suburbs and lower rent suburbs is the share of new suburban development captured by the former versus the latter. @include('site.elements.media.image', ['fileId' => 19013, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Though higher rent suburbs comprise just a third of the nation’s market-rate multifamily housing stock, those same suburbs were consistently delivering about 40% of all suburban construction over the past decade. Urban cores meanwhile make up abo...

Kentucky Apartment Markets Rank Among Top 10 Southern Metros for Rent Growth

2025-01-22T03:13:42-06:00

While apartment rent change in the South region has retrenched in recent months, two markets in Kentucky – Lexington and Louisville – have bucked that trend, both landing among the top 10 southern markets for annual rent growth in November 2023. Lexington recorded a 5.4% increase in effective asking rents during the year-ending November 2023, outperforming South region (-1.1%) and U.S. (0.2%) averages over the same period, according to data from RealPage Market Analytics. That rent performance earned Lexington the #2 spot in the South, trailing only Midland/Odessa. Rent growth in Lexington was boosted by minimal new supply alongside strong job growth of 3.7% in the year-ending October, outpacing the U.S. norm of 1.9% and ranking 8th place among RealPage’s 150 tracked markets. Over to the west, Louisville also outpaced both regional and national norms with effective asking rent growth of 3.5% in the year-ending November 2023, claiming the #8 spot in the South. While annual job growth in Louisville was comparatively weaker at 1.4%, limited new supply of only 1,000 units over the past year in this mid-sized South region market bolstered operator pricing power.

Heavy Supply Softens the Provo Apartment Market

2025-04-21T15:33:35-05:00

Provo has been one of the fastest growing apartment markets across the U.S. recently. And all that new stock has taken its toll on market fundamentals. Roughly 22% of the existing apartment stock in Provo has been built in the past five years, according to data from RealPage Market Analytics. That was one of the nation’s strongest growth tallies and is right in line with the increase seen in nearby Salt Lake City, which has nearly five times apartment inventory of Provo. As a result of record construction activity, apartment market fundamentals in Provo have waned in recent months. Occupancy came down by a significant 270 basis points (bps) in the past year, ranking as one of the nation’s worst annual declines. Occupancy landed at just 92.6% in November, well behind the national norm and the market’s five-year average. With occupancy fading fast, apartment operators in Provo have turned to rent cuts. Prices came down by 3.1% in the year-ending November, which is quite a change from rent hikes that were consistently in the double digits throughout much of 2021 and 2022.

Apartment Rents Remain Flat, and Could Be for a While

2026-03-04T06:52:52-06:00

Apartment rent growth has been rapidly cooling off since peaking in March 2022. But that trend could be leveling off – at least for now. Effective asking rents inched up 0.16% year-over-year nationally as of November 2023, compared to 0.08% in October, with change measured on a same-store basis. That marked the first time in 20 months that the pace of rent change did not decelerate. But it’s also highly unlikely to signal a meaningful re-acceleration. RealPage continues to expect rent growth to remain fairly flat through 2024, with many markets posting cuts. @include('site.elements.media.image', ['fileId' => 18916, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Flattening rents were in line with our forecast going into the winter months due to what’s called the base effect. On a month-over-month basis, effective rents fell 0.52% in November 2023. That compared to a 0.57% cut in November 2022, according to data from RealPage Market Analytics. (Seasonal rent cuts this time of year are normal; however, these recent cuts rank as the deepest for any November since the Great Financial Crisis.) In other words: One deep monthly cut is replacing another in the year-over-year calculation, creating the appearance of stability in the year-over-year rent metric. The base effect will likely remain at play through the winter due to bigger-than-normal cuts over the same period last year, which could keep the headline rent metric pretty flat. The bigger question could be what happens in the first half of 2024. At that point, the base effect is less severe at the same time new supply levels will be peaking at multi-decade highs. It’s Still All About Supply As we noted last month, the rent slowdown has everything to do with supply and little to do with demand. There’s ample demand for apartments at today’s rent levels, but the demand story has been overshadowed by the 50-year high in construction. As a result, there’s more supply than demand, which pu...

The Four Types of Multifamily Development Projects That Can Still Work in 2024

2025-01-22T03:13:42-06:00

What types of apartment or build-to-rent construction projects can still work right now? Not much (for a laundry list of reasons), but here are some of the deal types we still see breaking ground: 1. "The Story” You know the ones. Every developer wants to tell a great story about a deal, but there are some stories – like a best-selling novel – that just jump off the page. It's a no-doubt-about-it home run. Something unique in an area devoid of similar projects. It's like a project that is unique enough (either in location or design) that renters will pay the premium rents over cheaper or concession-heavy comps nearby. 2. The Low-Cost Basis Two project types fit here: A) The developer has "free land" or the development partner might be the long-time land owner. Or B) The developer has successfully reduced its construction costs materially enough to improve yields. Large developers with scale are laser focused right now on driving supply chain efficiencies (i.e. direct access to manufacturer for materials or multi-project bulk purchases) and in taking more of the labor (including trades) if they can do so at lower cost or produce the project faster (faster usually = cheaper). 3. The Subsidies Oldie but a goodie. Subsidized affordable or workforce housing projects are (relatively speaking) the steady eddies of multifamily development – less upside, but reduced risk on the downside. Tapping into federal programs like LIHTC or local/state programs like PFC (Texas) and Live Local (Florida) can be slow and cumbersome. Red tape is real. But if you can get those structures in place, the deals can work ... and right now it's often an easier sell to investors who intuitively see the logic building at lower rents with tax credits or other subsidies in place. Opportunity Zone deals can also work well. 4. The Long-Term Play For developers who are also long-term operators (or merchant builders with an investment partner who is one), the math migh...

Midwest Strength Stems from Stability, Not Apartment Demand

2025-04-21T16:35:59-05:00

Historic stability – and not necessarily solid apartment demand – is the reason the Midwest region has performed well in recent months. Many apartment markets across the Midwest are landing on the top of national leaderboards for rent growth, and occupancy isn’t doing as bad here as in some other regions of the U.S. But apartment demand isn’t the primary factor. In fact, the Midwest region accounts for only about 15% of total apartment demand across the U.S. The Sun Belt and Mountain region markets are the standout performers, with a combined 70% of national absorption, while demand volumes are much smaller in the Northeast, Mid-Atlantic and West Coast markets. While demand in the Midwest isn’t great, the volume of supply this region is gaining is also more moderate compared to other regions of the country. Therefore, what apartment demand the Midwest has been able to drum up has managed to sufficiently meet concurrent supply volumes. This is a trend running contrary to the rest of the nation, where record supply is far outweighing absorption.

Forecasting 2024’s Top Apartment Markets

2026-03-04T06:52:52-06:00

The economy is constantly changing, affecting the housing industry in many ways. While inflation has recently decreased, it remains worrying as consumers, investors and the Federal Reserve attempt to control rising prices – which has proven to be a very difficult task. Meanwhile, the job market appears steady, and consumers have been fairly resilient. Still, these external forces impact key indicators across multifamily housing markets. Understanding where markets are headed in coming quarters is valuable for anyone seeking to get ahead. By forecasting over 180 metro areas, we at RealPage have identified which major markets are poised to outperform in 2024. @include('site.elements.media.image', ['fileId' => 18805, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) For projected rent growth, two markets tied for the top spot. The tech hub of San Jose and Virginia capital of Richmond are both forecasted to grow rents 4.0% in 2024 – the highest rate among the nation’s 50 largest apartment markets. Next comes West Palm Beach with forecasted rent growth of 3.9%. Other top markets include Anaheim, Pittsburgh and San Francisco above 3.4%, along with Columbus, Riverside, Baltimore and Philadelphia above 3.2%. In general, robust local income growth often drives the steeper rental price increases. For 2024 occupancy rates, Newark, New York City, Boston and Riverside are forecasted to maintain the strongest occupancy, all above 96%. Unsurprisingly, these markets all have limited housing supply and dense populations, allowing the property operators to fill units. We also expect 2024 rates above 96% in Los Angeles, San Diego and Anaheim. In terms of new supply, Dallas leads with nearly 38,000 units underway – easily exceeding second-place Phoenix's 33,362 units. Other top construction markets include Austin, Denver, Charlotte and Los Angeles, each with over 20,000 new rentals delivering in 2024. Rounding out the top 10, Atlanta, Houston and Raleigh/Du...

RealPage Economy Express Episode 16

2025-01-22T03:13:42-06:00

Episode 16: Are there cautionary signals as we near the end of 2023? Residential building permits issued in October were slightly higher than September but down 4.4% year-over-year, according to the seasonally adjusted rates from the U.S. Census Bureau. Indicating a cooling housing market, existing home sales declined across most geographic regions, with stability only in the Midwest. Single-family home prices continued to grow in September, with 15 out of 20 major markets reporting month-over-month increases, showcasing sustained demand. Sales of single-family homes saw a significant increase in the year-ending October, with a median national sales price of around $409,000. The U.S. Leading Economic Index for October decreased by 0.8%, signaling potential recessionary trends like declining consumer expectations and tighter credit conditions. The Consumer Confidence Index improved in November, but the Expectations Index remains below the level historically associated with a recession. Consumers expressed concerns about rising prices and high interest rates. The second GDP estimate for 3rd quarter 2023 shows a robust annual increase of 5.2%, driven by consumer spending, private inventory investment and positive revisions in nonresidential fixed investment and government spending. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

The Small Midwest Market Where the Most Jobs and Apartments Are Headed

2025-01-22T03:13:42-06:00

Which small apartment market has one of the nation’s highest five-year inventory growth rates and job growth rates? Sioux Falls, SD has a population of about 272,000 residents and nearly 27,000 existing apartment units, according to data from RealPage Market Analytics. Since 3rd quarter 2018, both the jobs market and apartment base have swelled considerably. With nearly 15,000 jobs added in the five-years ending 3rd quarter 2023, total employment in Sioux Falls now stands at over 174,000 positions, according to the Bureau of Labor Statistics. That subsequent five-year employment growth rate of 9.4% was the best rate in the Midwest and a top 40 performance among the nation’s 150 largest apartment markets. Meanwhile, the 5,300 apartment units added in the market since 3rd quarter 2018 translates to a 24.7% jump in existing inventory – ranking within the nation’s top 10 growth among the top 150 markets. And more inventory is on the way in Sioux Falls. As of 3rd quarter 2023, another 3,200 units were under construction in Sioux Falls, delivering over the next approximately 18 months.

Multifamily Development Slows as Single-Family Grows

2026-03-04T06:52:52-06:00

Editor's note: This blog is part of a monthly series written by RealPage Senior Real Estate Economist Chuck Ehmann in which he examines seasonally adjusted multifamily and single-family starts and permits from the U.S. Census Bureau. Read previous blogs in this series here. RealPage Chief Economist Jay Parsons has called Census data into question, as multifamily starts appear understated in 2022 and overstated in 2023. Read his commentary discussing the validity of those numbers here. While multifamily permitting and starts continue to decline year-over-year, single-family development is on the rise. Although up by 4.9% from last month (to 382,000 units), the seasonally adjusted annual rate (SAAR) for multifamily starts declined 31.8% from last October, a much steeper decline than seen in the year-to-date unadjusted starts data. Multifamily permitting fell 27.8% from last year to 469,000 units but that was a slight 2.2% improvement from September. Meanwhile, the post-pandemic decline in single-family development caused by higher interest and mortgage rates (among other factors) appears to have reversed. The rates for single-family permitting and starts were almost unchanged from last month but were about 13% higher from last year for both at 968,000 permitted units and 970,000 starts. @include('site.elements.media.image', ['fileId' => 18758, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Completions of multifamily units dipped 12.6% from September to 408,000 units but increased 14.3% from last October as the pipeline continues to empty. The number of multifamily units under construction was unchanged from September at 987,000 units but was up 8.3% from last year. Additionally, the number of multifamily units authorized but not started was up 3.8% at 136,000 units in October but down 9.9% from one year ago. Single-family completions were down slightly (-0.9%) for the month but were up 2% for the year to 993,000 units. The number of si...

The Nation’s Strongest Student Housing Regions

2026-03-04T06:52:52-06:00

The prevailing student housing development and investment thesis in recent years has been that of targeting large, state flagship or land-grant universities in the Sun Belt region. The driving force behind that thesis is simple. That is, states with the fastest growing populations will see stronger enrollment growth. Extending that assumption further, if enrollment growth is strong, then demand for purpose-built off campus student housing will be more robust among these universities. The same line of thinking applies to those larger, land-grand universities (often referred to as Tier 1 or Power 5 institutions) versus peer campus types (such as Tier 2 or Group of 5 institutions). As the nation’s student housing performance remained red-hot in the Fall 2023 leasing season, many schools saw performance trend well ahead of previous decade norms. As the saying goes, a rising tide lifts all boats. Still, even a regional snapshot shows some support for the idea of getting investment and development dollars out in front faster-growing parts of the country. @include('site.elements.media.image', ['fileId' => 18711, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) When considering the weighted average of Fall 2023 rent growth charted by occupancy, high population growth states and regions recorded the strongest student housing performance, according to data from RealPage Market Analytics. Desert/Mountains Region The Desert/Mountains region – home to fast-growth states such as Arizona, Utah and even Idaho – led the country with occupancy approaching 99% while rent growth averaged nearly 13%. @include('site.elements.media.image', ['fileId' => 18710, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Though Arizona State’s incredible Fall 2023 boosts the regional norm (ASU achieved 24.5% rent growth while occupancy clocked in at 99.1% across its 11,100-plus existing beds), there weren’t any discernable pockets of weakness...

Big Markets with Modest Apartment Supply Volumes

2025-01-22T03:13:42-06:00

In a time dominated by record-breaking supply volumes across the U.S., a handful of major apartment markets have gone against the grain, adding less than 10,000 new units in the past five years. Among the nation’s largest 50 markets, Memphis has added the fewest new apartments since 2018, gaining just 4,600 or so units, increasing the existing base by 4.4%, according to 3rd quarter data from RealPage Market Analytics. Adding roughly 5,000 to 6,000 new apartments in the past five years were Pittsburgh, Cleveland and Virginia Beach. Greensboro and Riverside saw the completion of roughly 8,000 units in the past five years. Two other California markets made this list of low supply markets. Sacramento logged additions of just over 8,600 units, while San Franciso completions totaled nearly 9,700 units. Rounding the list out were two Midwest markets: Cincinnati and Detroit both gained about 8,600 new apartments in the past five years. It’s not a surprise to see some apartment markets on this list. Detroit, Pittsburgh and Cleveland saw their employment counts decline notably in the past five years, when the norm nationwide was job growth. Occupancy declines since 2018 have been significant in Memphis, Greensboro, Detroit, Sacramento and Riverside. But when it comes to rents, which are forging a relationship with supply volumes, all the metros on this list – with the exception of the California markets – are logging price growth at or above national norms.

Lincoln, NE Occupancy Shines Amid High Supply

2025-01-22T03:13:42-06:00

As of 3rd quarter 2023, Lincoln, NE claimed the second-highest occupancy in the nation among the top 150 apartment markets, behind only Youngstown, OH. Strong occupancy near 98% comes even as apartment supply has been climbing. In the year-ending 3rd quarter 2023, Lincoln added 835 units, a two-year high that will be dwarfed by the more than 1,200 units forecasted to be delivered in the coming year, according to RealPage Market Analytics. Annual net inventory grew by about 2.5% in the last year, just a bit above the national average of 2.1%. The coming year’s construction pipeline will grow Lincoln’s existing inventory by 3.8%. Lincoln, which has a total population of about 338,000 residents and an existing apartment unit count of about 34,000 market-rate units, has a higher concentration than the national norm of adults aged 20 to 34 – a prime cohort for apartment residents. Annual employment here grew less than 2% in the last year, and just rebounded back to the pre-pandemic employment rate from February 2020 in September 2023.

Metro Job Gains Slowing but Resilient

2026-03-04T06:52:52-06:00

Nationally, monthly jobs gained in October may have been disappointing compared to economists’ projections, but the economy is still generating a sizable number of jobs in individual metropolitan markets, although they are slowing also. According to the latest data release from the Bureau of Labor Statistics (BLS), the top 10 of RealPage’s top 150 markets added 762,900 jobs through the year-ending October 2023, almost 26% of the total jobs gained last year for the U.S. but down 11% from last month’s annual total for the same 10 markets. Last month’s top 10 accounted for 29% of the U.S. total. @include('site.elements.media.image', ['fileId' => 18666, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Nine of last month’s top 10 markets returned to this month’s list with just the first two remaining in place and several other markets changing rankings. As it typically does, New York continues to lead the nation in annual gains with 125,600 new jobs for the year-ending October, down about 32,400 jobs from last month and 180,700 fewer jobs gained than one year ago. Dallas remained in the #2 spot with an annual gain of 115,700 jobs, about 14,200 jobs fewer than last month and 50,800 less than last October’s annual total. Although Philadelphia’s annual job gains slowed by about 2,500 jobs from September’s total, the City of Brotherly Love moved up two spots from last month to #3, gaining 84,900 jobs for the year. Houston remained in the #4 spot, gaining 76,600 jobs for the year, but that was down more than 20,000 jobs from last month and 84,700 from last year. Los Angeles replaced Philadelphia at the #5 spot, gaining 74,900 jobs through October, slowing by 14,400 jobs from September and 76,600 from last year. Boston moved up a spot to #6 with 73,600 jobs gained, just 2,700 less than last month and only 1,300 fewer than a year ago. Atlanta also moved up one spot from last month to the #7 spot, gaining 64,900 jobs for the year, slipping only 2,...

Census is Likely Overstating Multifamily Starts in 2023

2026-03-04T06:52:52-06:00

Newly released data from the U.S. Census Bureau shows multifamily construction starts are down only 12% year-to-date in 2023 compared to the same period in 2022. That is highly unlikely, and I’ll share a few reasons why the evidence points to a far more severe drop of 40%+. 1. Other Data Sources Show Deeper Drops Private sector data providers including RealPage and others have reported sharp drops. These sources track individual products from planned to completion, whereas the Census surveys only a small sample of permit-holders to ask if they’ve started. @include('site.elements.media.image', ['fileId' => 18630, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Small sample surveys can smooth out inflection points, and that appears to be what happened. Comparing Census data to RealPage data, it appears the Census understated multifamily starts in 2022 and overstated them in 2023. 2. Architects Report “Extremely Weak” Demand for New Work The American Institute of Architects has reported 15 consecutive months of declined billings for multifamily – meaning they’re designing far fewer apartment projects since rates started climbing. Their most recent report noted that “business conditions remained extremely weak at firms with a multifamily residential specialization.” 3. Developers Struggling to Find Construction Financing The National Multifamily Housing Council does its own survey of apartment developers and builders. The surveys this year consistently show around 90% reporting delayed projects in 2023. The most common reason cited for delays are tied to availability of construction financing. Unlike other factors for delays (i.e. supply chain or labor shortage), financing delays can be indefinite delays. @include('site.elements.media.image', ['fileId' => 18631, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Lots of projects just don’t pencil out when rents are falling, costs are elevated, debt is high (assu...

Strong Demand Elevates DC Apartment Market

2025-01-22T03:13:42-06:00

Washington, DC is the East Coast’s best apartment performer. Apartment demand was solid in DC at nearly 8,200 units in the year-ending 3rd quarter. While that was a bit behind the five-year average for the nation’s capital, absorption here was among the top showings in the U.S. in the past year. As a result, Washington, DC occupancy is holding relatively stable, ahead of the U.S. norm and right around the market’s decade average. While new lease trade-out isn’t sizable in DC, a rate of 2.3% as of 3rd quarter still outperformed the national average, a place the market has held onto steadily for six consecutive months. That was the first time in a decade that new lease trade-out in Washington, DC outperformed the U.S. for such a long period. Rent growth has generally been strongest in suburban submarkets that have witnessed minimal supply in recent years. In contrast, high-supply urban areas tend to lag the market average. For more information on the East Coast apartment markets, including forecasts, watch the webcast Market Intelligence: Q4 East Coast Update.

More than 66,000 Build-to-Rent Units Underway in Sun Belt

2026-03-04T06:52:52-06:00

As the landscape of build-to-rent (BTR) units across the U.S. becomes denser and more concentrated as developers realize more opportunity, the South region remains ground zero for the rental sector. As of early November, some 113,308 BTR units were under construction (including at properties in lease-up where construction is ongoing), according to RealPage Market Analytics. As was the case in September, the Sun Belt remains a clear leader with roughly 66,500 units under construction in the South (about 41%) and another 29,800 units under construction across the West (about 26%). Meanwhile, comparative laggards of the Midwest (14,484 units or nearly 13%) and Northeast (2,441 units or 2%) make up less than one quarter the total number of BTR units under construction. @include('site.elements.media.image', ['fileId' => 18619, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) The macroeconomic environment is certainly keeping BTRs attractive for many renters. Although home prices have come down in some regions, they remain significantly above pre-pandemic prices. And, coupled with high interest rates impacting mortgage loans, this creates a rich pool of would-be homeowners desiring a more single-family home-like residence, but not necessarily ready to buy. Outside of private or individual developers, RealPage is tracking more than 300 developers with build-to-rent properties under construction. Among that group, some 15 developers have more than 1,000 units in varying degrees of construction. Five developers have more than 2,000 units underway. @include('site.elements.media.image', ['fileId' => 18618, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '452']]) In the #1 spot with 3,115 units under construction is Scottsdale, AZ-based Cavan Cos. building primarily in the South. Ohio-based Redwood Living Inc. which constructs neighborhoods in the Midwest and South has some 2,917 units under construction to claim the #2 spot on th...

Small Apartment Markets Where Supply is Holding Back Occupancy

2026-03-04T06:52:52-06:00

While the U.S. overall has seen moderate occupancy decline in the past five years, some small apartment markets are logging significantly worse performances. Since 2018, occupancy nationwide has come down by 110 basis points (bps), falling to 94.3% as of October 2023. But the pace of decline is twice as deep across some small apartment markets. For the most part, these are markets that benefited from an influx of residents leaving larger, more expensive cities in the early days of the pandemic. As such, most enjoyed a solid recovery from the 2020 economic slump. When occupancy and rent growth surged, developers kicked up building efforts to a degree that these small markets – some with less than 24,000 existing units – had yet to witness. When the dust settled, these locales were left with historically high construction volumes and demand levels that fell below pre-COVID norms, causing occupancy to slip. Boise City lost the most occupancy ground among the nation’s 150 largest apartment markets in the past five years, with a decline of 440 bps. As a result, occupancy is down to 93.3% as of October, which is one of the lowest showings this market has ever recorded. Boise City was a pandemic darling that saw jobs surge in the 2021-2022 timeframe, after the local economy became one of the fastest nationwide to recover from the COVID decline of 2020. Employment is up 18.4% since 2018, clocking in as one of the best five-year paces nationwide (only Austin beat that). But inventory growth in Boise was also one of the strongest in the U.S., swelling by 30.4% in the past five years, according to 3rd quarter data from RealPage Market Analytics. That was also a #2 performance in the U.S., beat out only by Huntsville, AL. As a result of such big construction activity, Boise City saw apartment fundamentals soften. @include('site.elements.media.image', ['fileId' => 18562, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Small Florida markets make up n...

RealPage Economy Express Episode 15

2025-01-22T03:13:42-06:00

Episode 15: Is the Federal Reserve's confidence in controlling inflation diminishing? The U.S. added 150,000 jobs in October, the smallest increase since January 2021, according to the Bureau of Labor Statistics. The same report indicates wages increased by 4.1% year-over-year in October, a slowdown from the 4.8% rise seen in the year prior. Employment is one major driver of rent growth. The pace of rent reduction has accelerated recently, influenced not just by employment trends but also by an abundant supply of new apartments. This rental market trend contrasts with the latest inflation report, indicating a 3.2% increase in the Consumer Price Index over the past 12 months. The Federal Reserve Chairman has expressed doubts about the effectiveness of current inflation control efforts. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

The One Proven Solution for Rental Affordability

2025-01-22T03:13:42-06:00

If you really care about rental housing affordability, you should really care about building as many new apartments as possible. It’s the one and only solution that unites economists, housing advocates and industry groups. We’re seeing the proven science play out again this year. Apartment construction nationally hit a 50-year high, which led to increased vacancies, which in turn triggered rapidly cooling rents. In the cities building the largest numbers of new apartments, rents are already falling, and likely will continue to fall next year as more supply hits the market. It’s happening everywhere from Oakland to Minneapolis to Dallas. The balance of power is shifting back to renters. But in the cities adding little-to-no supply, rents continue to grow. In fact, there’s a remarkably clear relationship between supply and rents. Apartment rents in the Austin and Phoenix metro areas fell around 5% year-over-year despite both ranking among the nation’s leaders for apartment demand, according to RealPage Market Analytics. Of the 16 markets that cut effective asking rents at least 2.5% over the last year, all but three outpaced the national average of 2.1% supply expansion. And of the 36 markets still increasing rents more than 3%, all but five ranked below-average for new supply. And it’s even more clear at the neighborhood level. Submarkets that expanded their apartment stock by 3-5% saw rents hold flat over the last year. Submarkets expanding by 5-10% saw rents fall 2%. And submarkets expanding by more than 10% notched rent cuts of 3%. By comparison, submarkets that added little or no new apartments saw rents grow about 2%. In other words: Cities that dramatically restrict apartment construction through limited zoning or costly regulations are, in effect, failing to pull the most proven lever to impact affordability. It’s Econ 101: The less available something is, the more expensive it will be. Most Americans believe tha...

Savannah Apartment Inventory Surges

2025-01-22T03:13:42-06:00

Apartment construction has increased notably in Savannah, after a surge of new renters hit during the throes of the COVID-19 pandemic, when residents fled big cities in favor of small coastal towns. In response to the quick influx of renters, developers noticed. Savannah now ranks among a handful of other small apartment markets with big inventory growth, with roughly 3,300 units currently under construction scheduled to increase the existing stock by 10.1%, according to data from RealPage Market Analytics. While scheduled inventory growth in the U.S. overall is lower at 5.2%, it's one of the most robust pipelines ever recorded. Savannah only has about 33,000 or so units of existing stock, so this is quite a surge for the once sleepy southern town. With new apartments hitting the Savannah market at a rapid pace, occupancy eased to 93.4% as of October. After rent growth here outpaced the U.S. average throughout much of the past two years, price increases came down as well, flattening out at just 0.2% in the year-ending October.

Apartment Market Fundamentals Remain Solid in Cincinnati

2026-03-04T06:52:52-06:00

Apartment market fundamentals have held up relatively well in Cincinnati among elevated yet manageable new supply levels. Like most apartment markets across the country, Cincinnati has been experiencing deflating market fundamentals after a surge in occupancy and rents in 2021 and 2022. However, the Cincinnati apartment market has been exceeding U.S. norms for both occupancy and rent growth recently, beating out U.S. norms for both. Cincinnati is equidistant to Columbus, Indianapolis and Louisville, all less than a two-hour drive away. The Ohio River, which forms the border between Kentucky and Ohio, runs through the middle of the Cincinnati apartment market which has nearly 168,000 existing units. Cincinnati is the county seat of Hamilton County, OH and is home to five Fortune 500 headquarters including Kroger, Procter & Gamble, Western & Southern Financial Group, Fifth Third Bancorp and Cintas, providing a solid economic base and demand driver. The city is also home to the University of Cincinnati, which is the city’s largest higher education institution, with an enrollment of roughly 50,000 students. @include('site.elements.media.image', ['fileId' => 18518, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Apartment occupancy in Cincinnati has registered at or above 95% for five years now. This is quite the feat, as only five other major U.S. markets have managed this, the others being Anaheim, Milwaukee, Newark, Philadelphia and San Diego. Even so, occupancy in Cincinnati peaked at 98.2% from November 2021 to March 2022 and has since been trending down. With new supply exceeding demand, occupancy backtracked 140 basis points (bps) in the past year, with the rate landing at 95% in October, according to data from RealPage Market Analytics. While that was a five-year low for the market, it was just slightly under Cincinnati’s pre-pandemic average from 2015 to 2019 (95.4%). In addition, Cincinnati’s October occupancy rate was 70 bps high...

U.S. Inflation Eases in October

2025-01-22T03:13:42-06:00

Inflation slowed in October, a sign that the Federal Reserve’s interest rate hikes are cooling consumer price increases. The price of goods and services paid by U.S. consumers rose 3.2% in the year-ending October, according to the Consumer Price Index (CPI) for All Urban Consumers measured by the Bureau of Labor Statistics. That was a smaller result that the 3.7% increase seen in September and just slightly above the recent low of 3% from June. Annual inflation as of October was a touch below economists’ expectations of 3.3% but still notably beyond the Federal Reserve’s target of 2%. However, inflation has cooled considerably since reaching a 40-year high of 9.1% in June 2022. Core inflation, which strips out volatile costs of food and energy, has displayed a downward trajectory in prices. That index edged down on a year-over-year basis from 4.1% in September to 4% in October, the smallest annual increase since September 2021. The energy index fell 4.5% in the year-ending October, with the lower gas prices (-5.3%) contributing to that downturn. The cost of shelter, which is keeping the overall inflation rate high, rose 6.7% from a year ago. Still, that was the slowest increase in a year. However, the shelter index has a well-documented lag effect. Excluding the cost of shelter, consumer prices were up just 1.5% year-over-year in October.

Apartment Occupancy Hits 13-Year Low in San Antonio

2026-03-04T06:52:52-06:00

San Antonio-New Braunfels remains one of the nation’s worst performing apartment markets. While fundamentals in many U.S. market have improved recently, San Antonio remains weak. This South region apartment market with roughly 226,000 existing units located a little over an hour drive southwest of Austin, has continued to post low occupancy and subpar rent change levels over the past year amid mounting supply volumes. Part of San Antonio’s lackluster apartment market is due to the composition of its economy. San Antonio’s slow-but-stable employment base in health care, government, military and aerospace manufacturing and repair jobs helps the market stave off more severe impacts from economic downturns. But those slow-and-steady demand drivers also limit upside potential in economic growth cycles. @include('site.elements.media.image', ['fileId' => 18423, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) In October 2023, San Antonio’s apartment occupancy backtracked 180 basis points (bps) year-over-year, the fourth-worst pullback among the nation’s 50 largest market, according to RealPage Market Analytics. That downturn took San Antonio’s occupancy rate to just 91.4%, the lowest level in over 13 years and the weakest reading nationally, trailing the U.S. norm by 290 bps. Weak occupancy is nothing new for San Antonio, as this market consistently registers well below the U.S. norm. Over the past 10 years, occupancy in San Antonio has trailed the U.S. average, with a rate averaging around 93.5%. While San Antonio occupancy did register above 95% in the second half of 2021 through the first half of 2022, that was an anomaly due to pent-up demand from the 2020 COVID-19 pandemic shutdown. @include('site.elements.media.image', ['fileId' => 18422, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Among San Antonio’s asset classes, October occupancy was weakest at 90.7% in Class C product. Class A units led with a rate...

Florida Apartment Performance Slows Notably

2025-04-21T16:35:04-05:00

After raising rents notably in the heightened traffic of 2021 and 2022, apartment operators across Florida have pulled back in recent months. In the July to September quarter, Florida rents were cut by an average of 1%, which was quite a different move compared to the average U.S. increase of 0.5%, according to data from RealPage Market Analytics. Looking back, Florida’s quarterly rent change performance bested the U.S. norm for the better part of two years, but all that changed in 2nd quarter 2023, when Florida markets started to underperform the U.S. average. That was the first time in which the U.S. saw quarterly rent growth surpass Florida rent growth since 3rd quarter 2022. And looking back even further, the past two quarters are only the fourth time since 2019 that U.S. price increases have outpaced Florida growth. Some Florida markets logged especially severe rent contractions in 3rd quarter, with the worst setbacks seen in Naples and Cape Coral – two small markets that logged nation-leading rent growth in the past five years. Out of all the Florida markets, only Tallahassee saw positive rent growth in 3rd quarter.

First Pre-Lease Readings of Fall 2024 Top Previous Highs

2026-03-04T06:52:52-06:00

With just a few weeks’ worth of data in the Fall 2024 leasing season, strong demand has already shown up in early pre-lease readings. As of October, 11.8% of beds at the core 175 universities tracked by RealPage have been claimed for the Fall 2024 academic year. That’s well above a typical October reading of closer to 5%. In October 2022 – which would go on to become one of the strongest months in the Fall 2023 pre-lease season – pre-leasing registered at 10.5%. @include('site.elements.media.image', ['fileId' => 18460, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) In Fall 2023, the first three readings of the pre-lease season – in October, November and December – registered well above the long-term norm for those months. But then momentum tapered somewhat, though still stood comparatively ahead, thanks in large part to those strong early months. While RealPage has forecasted a slightly softer occupancy performance in Fall 2024 compared to Fall 2023 and 2022, this early reading suggests the cadence of pre-leasing might look a lot like last year. That is: ultra-strong pre-leasing in the first couple months of the season that buoys more normal demand postings after the New Year. @include('site.elements.media.image', ['fileId' => 18411, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) In a continuation of a years-long pattern, pre-leasing in October 2023 was strongest in assets closest to campus. As of October, 12.7% of properties within a half mile of campus were pre-leased for the Fall 2024 academic year, compared to 9.9% of beds within a half mile to one mile of campus and 10.7% of beds more than one mile from campus. All three of those mark all-time highs for October postings in the RealPage dataset.

Five Markets Losing the Most Apartment Revenue

2026-03-04T06:52:52-06:00

Most markets around the country have been experiencing deflating occupancy rates after the post-pandemic surge in occupancy and rents in 2021 and 2022. Consequently, rent growth has also slowed or backtracked as owners and landlords have sacrificed pricing power in order to compete for renters and maintain occupancy and cash flow. Additionally, new supply is surging around the country and is impacting market fundamentals in the markets and submarkets where it is concentrated. Together, declining occupancy and retreating rents have revenues falling in more than half of the top 150 markets tracked by RealPage Market Analytics. Four of the five markets with the deepest declines in revenue are in the South region. All the markets losing the most revenue were also among the 10 worst performers for annual change in effective asking rents, and most had inventory growth levels of around 5% to 5.6% in the year-ending 3rd quarter 2023 (with the exception of Atlanta at 3.4%). @include('site.elements.media.image', ['fileId' => 18355, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) The West region’s Boise City, ID saw revenues decrease by 8.3% in the year-ending October with a 6.4% decline in rents and a 1.9% decline in occupancy. Interestingly, Boise City made the top 10 markets for job growth in September with a 3.8% increase in employment from last year. Demand is not the issue, as the market absorbed nearly 800 units in the past year, but new supply has ramped up significantly in this small market. Apartment inventory increased 5.3% with 1,612 units added to local inventory in the past year and is set to increase by 7.3% in the next 12 months. Austin’s apartment revenues decreased 7.7% in the past year, on annual rent cuts of 5.9% and a decrease in occupancy of 1.8%. Here, supply is very much the issue as inventories grew by 5.6%, or by 16,481 units for the year-ending 3rd quarter. The market will be stressed further in the next year as new supp...

Only Small Apartment Markets Claim Occupancy Gains

2025-01-22T03:13:42-06:00

Among the 150 largest apartment markets in U.S., the only ones to see any occupancy growth in the year-ending October 2023 were small markets, according to data from RealPage Market Analytics. These top performing markets are spread out geographically and have widely varying levels of new deliveries. But beyond their smaller size, they tend to have a couple things in common. A few college markets made the list, including Lansing-East Lansing (home to Michigan State University), Fort Collins (home to Colorado State) and Champaign-Urbana (home to University of Illinois). Champagne-Urbana is also the only market on this list that received no new supply over the past year. Another handful of markets on this list reside near a bigger metro area. For example, Worcester near Boston claims the strongest annual occupancy change in the nation in the year-ending October. Meanwhile, Salinas, which is about an hour south of San Jose, boasts average monthly rents about $700 cheaper than San Jose. Finally, many of these top performers are on the larger side of a small market classification, based on economic and cultural profiles. Bridgeport and Harrisburg fit this profile – and have also both added about 1,000 units of apartment supply in the last year. Midland/Odessa is perhaps the wildcard on this list, though not when considering the boom-and-bust nature of this oil-dependent market. Nationwide occupancy was down 20 basis points (bps) month-over-month and 100 bps year-over-year, landing at 94.3% in October 2023.

After Rapid Cooldown, Apartment Rents Plateau (For Now)

2026-03-04T06:52:52-06:00

For the first time in three years, the year-over-year apartment rent growth trendline isn’t moving like a roller coaster. National rent growth held steady at a flat 0.1% annually for a second consecutive month in October – pushing the pause button on what had been 18 straight months of cooling that followed a similar stretch of increases. But beneath the headline number, it’s a bit more complicated story around what’s called the base effect. On a month-over-month basis, effective rents fell 0.56% in October 2023. That compared to a 0.54% cut in October 2022, according to data from RealPage Market Analytics. Those cuts rank as the deepest for any October since the Great Financial Crisis. @include('site.elements.media.image', ['fileId' => 18367, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) In other words: One deep monthly cut is replacing another in the year-over-year calculation, creating the appearance of stability in the year-over-year rent metric. The base effect will likely remain at play through the winter due to bigger-than-normal cuts over the same period last year, which could keep the headline rent metric pretty flat. The bigger question could be what happens in the first half of 2024. At that point, the base effect is less severe at the same time new supply levels will be peaking at multi-decade highs. It’s All About Supply As a reminder: It’s still all about supply. There’s still a lot of demand for apartments in 2023. Just not enough to keep pace with the nation’s biggest apartment construction spree in 50+ years. That wave came as a result of big rent growth and low vacancy of 2021 and early 2022. More specifically: Supply is creating a tale of two markets – those with and those without. Rents are cooling fastest where supply is growing fastest. Among the markets still seeing sizable rent growth, nearly all are adding new supply at below-average rates. In fact, of the 21 markets with rent growth at or above 4% annual...

Apartment Demand Is Strong in Texas, but So Are Rent Cuts

2025-01-22T03:13:42-06:00

Despite strong apartment demand in many Texas submarkets, rent cuts are becoming more common. In fact, 60% of all Texas submarkets logged rent cuts in the year-ending 3rd quarter. While this is a trend happening all over the U.S., Texas submarkets are especially impacted, given the high volumes of new supply delivered in the Lone Star State in recent years. Austin, which has seen record new supply in the past five years, is especially prone to rent cuts. Every submarket across the state capital saw price declines year-over-year as of 3rd quarter, with some cuts getting as deep as 5% to 7%. In San Antonio, a little over 70% of submarkets are logging rent cuts, while Fort Worth is close with about 64%. The other half of the Metroplex, Dallas, is seeing price declines in about 53% of submarkets. Houston stands out as an exception among Texas markets. In contrast to previous cycles, Houston is experiencing fewer rent cuts due to limited supply, resulting in less downward pressure on rents. Less than 40% of Houston submarkets are logging rent cuts. For more information on the Texas apartment markets, including forecasts, watch the webcast Market Intelligence: Q4 Texas Update.

U.S. Labor Market Cools in October

2026-03-04T06:52:52-06:00

U.S. employers added fewer jobs than expected in October, while the unemployment rate edged up. Despite the recent cooling, job growth remains resilient, and the unemployment rate remains low by historical standards. @include('site.elements.media.image', ['fileId' => 18323, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Employers added roughly 150,000 employees to payrolls in October 2023, according to the Bureau of Labor Statistics (BLS). That was the weakest month-over-month gain since June 2023 and about half September’s gain of 297,000 jobs. Furthermore, that recent job gain was below what economists were projecting (+180,000 jobs). Of note: The job counts for August and September were revised considerably lower. Downward revisions to August 2023 data showed 62,000 fewer jobs were added than previously reported, down to 165,000 positions. The September 2023 growth number was also revised down, decreasing by 39,000 jobs to a total of 297,000 positions. With these revisions, employment gains in August and September combined were 101,000 jobs lower than previously reported. @include('site.elements.media.image', ['fileId' => 18322, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Recent job gains were well below the monthly average of around 399,000 jobs added in 2022 and below pre-pandemic norms. From 2015 to 2019, the U.S. economy added an average of roughly 190,000 jobs each month. On an annual basis, the nation gained more than 2.9 million jobs in October 2023. Although that was the weakest annual gain since March 2021, it was above the average of around 2.4 million jobs added annually from 2015 to 2019. The U.S. economy has recovered all the net jobs lost during the COVID-19 pandemic. As of October, the nation had nearly 4.6 million more jobs (+3%) compared to the pre-pandemic employment level from February 2020. Jobs by Industry Job growth in October was seen in six of 11 major industry sectors. T...

These 7 Downtowns Have Doubled Apartment Supply in a Decade

2025-01-22T03:13:41-06:00

In several urban core submarkets, the existing base of apartment units has more than doubled in the last decade, according to data from RealPage Market Analytics. Unlike the nine downtowns that added the least amount of new supply in the last 10 years, these seven urban cores have added between 8,000 and 18,600 units during that time. Two Washington, DC submarkets make this list. Inventory in Navy Yard/Capitol South has nearly tripled in the last decade as more than 15,000 new apartment units have grown the base by nearly 200%. Northeast DC, meanwhile, added about as many units – roughly 15,000 – and grew by about 109%. Several Sun Belt supply leaders appear here as well, including Central Nashville, with incredible growth of over 18,500 units in the last decade. Charlotte’s Uptown/South End, and Houston’s Downtown/Montrose/River Oaks also more than doubled in the last 10 years. Finally, western submarkets Central Phoenix and Denver’s Downtown/Highlands/Lincoln Park area also doubled existing stock.

RealPage Economy Express Episode 14

2025-01-22T03:13:42-06:00

Episode 14: Are consumers still spending, despite higher prices? Pending home sales increased by 1.1% in September but are still down 11% year-over-year, according to the National Association of Realtors. This isn’t surprising given the increase in mortgage rates. A government report showed 760,000 new single-family homes were sold in September, a 34% increase from the previous year. The U.S. economy experienced robust growth of 4.9% in 3rd quarter, equivalent to the entire economies of Portugal, Iraq or New Zealand, according to the U.S. Bureau of Economic Analysis. Consumer spending increased by 4%, despite a recent decline in the Consumer Confidence Index over the past three months. The Fed decided to maintain interest rates at their current level. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

Record Supply Softens Occupancy and Leads to Rent Cuts in Austin

2026-03-04T06:52:51-06:00

New apartment development has been extreme in Austin in the past five years, transforming both the skyline and the bottom line. While this thriving Sun Belt market has thus far handled such intense volumes of new supply relatively well, cracks are emerging in key fundamentals. Austin has lured residents from all over the country with its thriving job market and affordable cost of living (especially compared to other tech hubs like San Francisco and New York). Austin’s culture is also attractive to young renters, with a robust music scene, world-renowned festivals like Austin City Limits and South by Southwest (SXSW) and an array of outdoor lifestyle options. Additionally, the Austin market is home to two major public universities. For all these reasons, Austin has attracted solid in-migration recently, triggering record apartment demand. And apartment developers responded by building more stock than the market has ever seen before. @include('site.elements.media.image', ['fileId' => 18319, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) In fact, one quarter of all the existing apartment inventory in Ausitn was built just within the past five years. Nearly 59,000 units have been built here since 3rd quarter 2018, increasing the existing base by 24.7%, according to data from RealPage Market Analytics. Among the nation’s largest 50 apartment markets, this was the most extreme inventory increase in the past five years, followed closely by Charlotte, where the inventory hike was 23.9%. In the past year, specifically, Austin completions sped past nation-leading demand volumes. Roughly 16,500 units were completed in the year-ending 3rd quarter, a record high for the market. That was one of the biggest showings nationwide, beat out by only Atlanta (18,700 units), Houston and Dallas (both about 17,100 units). Absorption volumes tend to be seasonally solid in Austin during 3rd quarter and that was especially true in 2023. Roughly 5,445 units wer...

U.S. Home Prices Rise for Seventh Straight Month

2025-01-22T03:13:41-06:00

U.S. home prices continued an upward trend in August, as demand for housing outpaced supply. Overall, U.S. home prices were up 0.4% from July to August, according to the seasonally unadjusted S&P CoreLogic Case-Shiller U.S. National Home Price Index, which measures average home prices across the nation. That was the seventh consecutive month that prices have increased. On an annual basis, home prices were up 2.6% as of August 2023. While that was the largest year-over-year increase in seven months, it was well below the historic peaks of 20.8% seen in March and April 2022. Looking at more granular results, the S&P CoreLogic Case-Shiller 20-City Composite Index, which tracks prices in the 20 largest metros, posted a 0.4% month-over-month gain and 2.2% growth year-over-year. As of August, 13 of the 20 cities in the index reported month-over-month price increases, with the largest monthly increase in Miami (1.2%), followed by Las Vegas (1.1%). On an annual basis, 12 of the 20 metro areas recorded higher prices, with the biggest hikes in Chicago and New York (both at 5%). Notable year-over-year increases were also recorded in Detroit (4.8%) and San Diego (4.1%). The deepest annual pullbacks were in Las Vegas (-4.9%), Phoenix (-3.9%) and San Francisco (-2.5%).

Multifamily Permitting and Starts Drop Further

2026-03-04T06:52:51-06:00

September’s seasonally adjusted annual rates for multifamily permitting and starts were each down by about 31.5% from one year ago, according to the latest release from the Census Bureau. Multifamily permitting’s September rate of 459,000 units was down 14% from August’s annual rate as the slowdown in apartment development continues. However, multifamily starts were up 17.1% to 383,000 units in September compared to the unusually low annualized rate for August. @include('site.elements.media.image', ['fileId' => 18161, 'attributes' => ['border' => '0', 'width' => '1474', 'height' => '887']]) Meanwhile, completions of multifamily units increased 10.1% from August to 445,000 units, an increase of 15% from last September as the pipeline begins to empty. The number of multifamily units under construction dipped only slightly in September from August (-0.7%) to 986,000 units but was up 10.9% from last year. Additionally, the number of multifamily units authorized but not started was almost unchanged at 134,000 units in September but was down 11.3% from one year ago. Single-family permitting continued increasing with September’s seasonally adjusted annual rate (SAAR) inching up 1.8% from August and 11.6% from last year to 965,000 units. The annual rate for single-family starts increased 3.2% in September to 963,000 units and was 8.6% greater than a year ago. The sharp monthly decrease in multifamily permitting brought the SAAR of total residential permitting down 4.4% from August to 1.473 million units and the overall trend dropped the year-over-year rate by 7.2%. The monthly increase in multifamily starts brought total residential starts up 7% from August but they were down 7.2% from last year to 1.358 million units. Single-family completions were up 5.3% for the month but were down 4.8% for the year to 998,000 units. The number of single-family units under construction was essentially unchanged from August’s pace at 674,000 units but that was 14.8% less than one ye...

DC Dominates List of Best-Performing Urban Core Apartment Submarkets

2026-03-04T06:52:51-06:00

Roughly half of the nation’s best-occupied urban core submarkets are in Washington, DC. For the most part, the top apartment occupancy performances among urban core submarkets were in those areas that saw some of the mildest apartment deliveries in the past five years. The urban core with the highest conventional apartment occupancy showing in September was Intown Boston, with a rate of 97%, according to data from RealPage Market Analytics. New apartment completions in this urban core have been relatively modest, swelling the existing unit base by 9.1% in the past five years. In Washington, DC’s North Arlington submarket, September occupancy registered at 96.5%, after the existing base grew by 11.5% since 2018. Of note, all the DC submarkets on this list saw fairly tight occupancy across the board, with Class A stock bringing up the tail end, with rates of about 94% to 96%. North Arlington was the only exception, however, with Class A stock at a very tight 96.7% dominating over Class B properties, which were a bit softer at 95.7%. @include('site.elements.media.image', ['fileId' => 18158, 'attributes' => ['border' => '0', 'width' => '1104', 'height' => '756']]) Located just across the Potomac River, Northwest DC logged occupancy at a tight 96.4%, while neighboring urban core North Central DC posted occupancy of 95.8%, tying with Chicago’s Lincoln Park/Lakeview submarket. All three of those urban cores saw inventory growth around 4% to 5% – some of the smallest increases nationwide – in the past five years. Bethesda/Chevy Chase logged a notable occupancy showing of 95.7% as of September. This urban core stands out as one that has seen more than its fair share of supply since 2018, with apartment inventory growing by 18.1%. Still, that’s mild compared to the growth of roughly 50% to 75% seen in the urban Navy Yard/Capitol South and Northeast DC submarkets. As a result, apartment occupancy in those high-supply neighborhoods was much softer at 93.5% in September....

Portland Apartment Market Fundamentals Stumble

2025-04-21T16:44:58-05:00

Portland's apartment market has historically been more stable than some other West Coast metros, but recent data shows a decline in fundamentals in 2023. Portland recorded net move-outs from 435 units in the year-ending 3rd quarter, while over 3,800 new units were concurrently delivered. This imbalance resulted in occupancy falling 140 basis points (bps) in the past year to 94.2%, one of the poorest showings in the Pacific Time Zone. As of September, new residents paid 1.5% less than the previous tenant for the same unit in Portland. That was down significantly from just a year ago, in 2022, when new renters were paying trade-out price increases of nearly 20%. Across Portland’s 11 submarkets, none posted rent growth in the last year, though two submarkets – Central Portland and Southwest Portland/Tigard – managed stagnant growth in the year-ending 3rd quarter. In the near term, the Portland apartment market is expected to see increased supply volumes, which may further impact the occupancy and rent change landscape. About 5,500 units are expected to come online in Portland in the next 12 months.

Comparing Markets by Strength of Apartment Lease-Up Absorption

2026-03-04T06:52:51-06:00

As new apartment deliveries continue to mount to 50-year highs, properties working their way through lease-up can shed light on local market performance. If lease-ups take longer than expected to build up their initial base of renters, then concessions among these assets could increase. By controlling for average property-level absorption on a per month basis (units absorbed per property per month), it’s easier to derive a baseline of lease-up demand in a market, making it simpler to compare markets. For instance, the absolute number of apartments working through lease-up in a market like Columbus will never match that of a larger metro such as Los Angeles. The per property per month measure helps provide a better market-adjusted demand snapshot. @include('site.elements.media.image', ['fileId' => 17933, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Regionally, demand in the South Florida trio of markets – Fort Lauderdale, West Palm Beach and Miami – continues to impress, clenching some of the top spots on this demand leaderboard, according to data from RealPage Market Analytics. Dallas/Fort Worth, San Antonio and Houston meanwhile highlight that luxury product demand is strong in nearly all of the major Texas markets – with the exception of Austin (where the average units absorbed per property appears to be watered down due to sheer volume of assets delivering). Of note, Baltimore, Greensboro, New York, and San Jose have seen the pace of lease-up absorption increase in 2023 relative to 2022. Whereas, Austin, Miami, Minneapolis, Newark and Orlando have seen the pace of lease-up absorption slow down the sharpest, declining more than 50% year-over-year. Orange County and San Jose are two West region markets where lease-up property demand has been far stronger than regional peers. Generally speaking, the West coast markets make more of a showing on the weak absorption list. @include('site.elements.media.image', ['fileId' => 17932, 'attr...

Small Apartment Markets with Nation-Leading Rent Hikes

2025-01-22T03:13:41-06:00

A handful of small coastal apartment markets rank alongside the nation’s largest metros for nation-leading change in monthly rents in the past five years. All of these smaller markets have an existing unit base of between 28,900 units and 53,400 units, according to September data from RealPage Market Analytics. While Miami saw the nation’s largest increase since 2018, with prices growing $874, the small Naples apartment market – located a few hours away on Florida’s Gulf Coast – logged almost as much growth at $870. This market also ranked #2 for percentage growth, with a five-year increase of 64.2%. Only Fayetteville-Springdale-Rogers, AR-MO saw a faster growth pace during that time, but that translated to a much softer increase of $455. Cape Coral was the other small Florida market on the list, with five-year rent growth of $739. Two small California markets – Santa Maria and Oxnard – logged price increases of $739 to $859. Santa Maria’s growth was very close to San Diego’s upturn of $856 while Oxnard’s pace matched that of nearby Anaheim. The final small market to see nation-leading rent growth in the past five years was Trenton, NJ, where rents are now $765 more than they were five years ago. In comparison, operators in New York raised prices by $837 in that time frame.

Job Gains Still Strong in Major Metros

2026-03-04T06:52:51-06:00

Like much of the nation, the country’s largest metro areas are still producing a significant number of new jobs. According to the latest data release from the Bureau of Labor Statistics (BLS), the top 10 of RealPage’s top 150 markets grew annual employment gains through September 2023 by 5.2% over their combined total for the 12 months ending August. The top 10’s total of 911,900 jobs gained through September accounted for almost 29% of the national total. Although the majority of the top 150 markets saw post-COVID declines in their annual job gain totals compared to September 2022 as employment gains normalize, a significant number are still elevated above their pre-COVID average annual job gain levels. @include('site.elements.media.image', ['fileId' => 18047, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Nine of last month’s top 10 markets returned to this month’s list with just the first three remaining in place and several other markets changing rankings. New York continues to lead the nation in annual gains with 161,500 new jobs for the year-ending September, down about 24,000 jobs from last month and 240,400 fewer jobs gained than one year ago. Dallas remained in the #2 spot with an annual gain of 132,800 jobs, about 20,000 jobs more than last month but 55,900 less than last September’s annual total. Los Angeles’ annual job gain total was about even with August’s at 95,800 jobs but LA is down by 104,300 jobs from their annual total one year ago. Houston switched places with Philadelphia again at the #4 spot with 94,700 jobs gained, up 6,700 jobs from last month but almost 88,000 fewer than last September. Philadelphia moved to the #5 spot with 86,700 jobs gained in the 12-months ending September, 58,000 fewer than last year and 4,100 less than in August. Washington, DC jumped onto the top 10 list at #6 with 78,000 jobs gained for the year, an increase of almost 19,000 jobs above August’s revised total. In fact, DC’s revised e...

RealPage Economy Express Episode 13

2025-01-22T03:13:41-06:00

Episode 13: Will we have another rate hike? U.S. employment was up by a surprisingly strong 336,000 jobs in September, notably surpassing economists’ expectations, according to the Bureau of Labor Statistics. Average hourly earnings rose by 4.2% over the past year, outpacing inflation. Inflation reports showed a mixed picture, with producer and consumer prices increasing, including a notable 4.1% annual rise in Core CPI. Retail Trade Sales saw a 3% annual increase, reflecting steady consumer spending, according to the U.S. Census Bureau’s Advanced Monthly Sales Report. The Federal Reserve anticipates continued improvement in the labor market but does expect to increase prices during the holiday shopping season. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

East Coast Gateway Apartment Markets Outperforming West Coast

2026-03-04T06:52:51-06:00

The nation’s large gateway markets have seen a widening split in apartment market fundamentals in recent quarters. East Coast gateway markets* are exhibiting strength in the face of increased apartment supply volumes, while West Coast gateway metros** are softening, despite less significant completion levels. Nationwide, previously healthy rent growth has flattened due to heavy supply. But apartment operators in East Coast gateway markets aren’t sweating completion volumes. In fact, rent growth was roughly 2% or better across every gateway market along the East Coast in the year-ending September. That’s much better than the essentially flat 0.1% average in the U.S. overall. @include('site.elements.media.image', ['fileId' => 17998, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Newark was the rent growth leader among the nation’s 50 largest apartment markets, with a price increase of 4.3% in the past year. Boston’s annual increase was also solid at 3.1%, while Washington, DC and New York logged growth of 1.9% and 1.7%, respectively. Big rent growth is not just exclusive to gateway market in the Northeast. It’s a common theme among most Northeast apartment markets recently, as rent growth in this region has taken an historic lead over the national norm. This is not just about solid price increases in the Northeast, but it’s also a likely product of operators preserving occupancy amid so much new supply allowing renters more options. In fact, among the West coast gateway markets, only Anaheim posted rent growth ahead of the U.S. average, with an increase of 1.3% in the year-ending September. All other West coast gateway markets suffered rent cuts in the past year. The deepest declines were seen in the Bay Area metros of San Jose (-2.5%), Oakland (-2.4%) and San Francisco (-2.3%). This division between coasts is inspired by apartment demand distribution. West Coast gateway markets have suffered significant demand loss in recent quarter...

New York Apartment Fundamentals Hold Strong, Despite Demand Loss

2025-01-22T03:13:41-06:00

As apartment demand normalizes nationwide, some markets are seeing notable rebounds in absorption activity. The nation’s largest apartment market, however, is not one of them. New York suffered net move-outs from roughly 10,600 units in the year-ending 3rd quarter, according to data from RealPage Market Analytics. This was the worst performance nationwide and was twice as deep as the loss seen in second worst Los Angeles (-5,200 units). At the same time, new apartment supply in New York has been sizable, with roughly 12,200 units completed in the past year. That’s one of the largest tallies nationwide, but only swelled the large existing base by a mild 0.6%. Despite New York’s recent demand struggles, however, the market is historically one of the strongest nationwide, propped up by its reputation as a cultural, commercial and financial hub. In fact, New York is generally in a league all its own. Despite recent demand loss, apartment occupancy in New York hit 97% in September, the best showing among the nation’s largest 50 markets. As a result, apartment operators are still pushing rents, and the most recent annual increase of 1.7% holds a lot of weight for the nation’s most expensive apartments, with an average monthly price of about $4,500 in September.

A Majority of U.S. Apartment Renters Feel Satisfied, Despite Stigma

2026-03-04T06:52:51-06:00

U.S. apartment renters often feel misunderstood, according to results from a national study conducted by The Center for Generational Kinetics for RealPage. These findings shed light on the perceptions and attitudes of renters and can have significant implications for apartment owners and operators. The study found that renters feel society views them as second-class citizens, a sentiment that might be rooted in the prevailing American dream of homeownership. The data suggests that renters perceive a lack of understanding or respect for their choices but are generally happy with their apartment homes. @include('site.elements.media.image', ['fileId' => 17970, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Unfair Stigma Nearly 70% of renters believe there is an unfair stigma associated with renters and renting in the U.S. The study noted that feelings of being misunderstood were especially high among women, indicating potential gender-related factors in perceptions of renting. This underscores the need to address and challenge these stereotypes to create a more inclusive and understanding environment. Perceptions Across Generations The study highlights a generational divide in perceptions. A substantial 73% of renters believe that older generations view renters more negatively than homeowners. This suggests a need for intergenerational dialogue and understanding. Reasons for Renting A notable 63% of renters choose to rent for reasons other than not being able to afford to buy a home. In other words, 63% of market rate apartment renters could afford to buy but choose to rent instead. This challenges the common assumption that renters are primarily driven by financial constraints and shows that renting is a conscious choice for many. Positive Relationships with Property Managers Contrary to negative stereotypes about landlord-tenant relationships, 72% of renters reported having positive relationships with their property managers. This...

Which Markets Could be Most – and Least – Impacted by Apartment Construction?

2026-03-04T06:52:51-06:00

Here's another way to look at the big wave of apartment construction: How does each market's supply peak in this cycle compare to its previous peaks over the last 20+ years? Any market on the left of the green dotted line of this chart below will set a new peak for new supply. @include('site.elements.media.image', ['fileId' => 17930, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '703']]) The previous peak is a useful benchmark because it provides context to a market’s past absorption capacity. Comparing markets based only on current supply levels doesn’t account for each market’s historical ability to absorb supply. This approach isn’t flawless, but it’s a helpful framework. Let’s group the markets into five categories, with some commentary on what impact supply might have in each one. Tier 1: Big Supply These are markets adding a ton of supply and mostly places blistering past their previous peaks: Austin, Raleigh, Salt Lake City, Nashville, Charlotte, Phoenix – and Denver and Jacksonville are pretty close too. These are markets that historically have had little trouble absorbing big supply and will likely continue to see massive demand yet will likely get challenged in the short term. They'll lease up, but slower than most developers want to see. Among smaller markets? Look at Huntsville. Wow. We had to adjust the Y axis just to fit it into the chart. Other boomtowns include Colorado Springs, Sioux Falls, Port St. Lucie, Lakeland, Fort Myers, Provo, Boise, Asheville, Charleston, Savannah, Myrtle Beach and Pensacola. These are all great spots long term, but short term could get tough for operators and developers. Deal-seeking, middle- and upper-income renters will have a lot of options in this group of markets. As we’ve previously shared, there’s a direct relationship between supply levels and rent movements. Rents are already falling across all asset classes in the highest-supplied areas, and probably will continue to decline in 2024. Ti...

U.S. Apartment Demand Normalizes as Regional Split Widens

2026-03-04T06:52:51-06:00

Apartment demand is normalizing after a period of uncertainty and low consumer confidence, but demand distribution has not been evenly balanced across the country. Over the last three quarters, the U.S. apartment market has enjoyed positive apartment demand, with net gains in apartment renter households coming after a similar time period of net move-outs. Roughly 91,000 stabilized units were absorbed in the year-ending 3rd quarter 2023, while about 45,000 lease-up units were gained. These numbers are the best the market has seen since 3rd quarter 2021, when demand was at exceptionally historic highs. @include('site.elements.media.image', ['fileId' => 17892, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Demand isn't evenly distributed across the country, however, with the Sun Belt and Mountain regions experiencing the lion's share of absorption. These two regions combined absorbed 120,000 net units, amounting to 70% of the U.S. total. @include('site.elements.media.image', ['fileId' => 17896, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Meanwhile, apartment demand in the Midwest continues at a steady pace, accounting for about 15% of nationwide totals. With a lack of abundant new supply, Midwest operators continue to deploy strong rent growth in that part of the country. Apartment demand in the Northeast and Mid-Atlantic areas account for about 9% of the U.S. total. The Northeast, like the Midwest, has also seen limited new supply volumes in recent months. However, the West Coast is facing some demand challenges, particularly in specific markets like Los Angeles, where new supply has been significant.

Apartment Performance in Champaign-Urbana Bucks National Trend

2025-01-22T03:13:41-06:00

Champaign-Urbana bucked the trend of increasing vacancies seen across much of the U.S. in September. Occupancy in this market located about two hours outside of Chicago climbed a significant 80 basis points (bps) month-over-month and 70 basis points year-over-year to 97.8%, a top five national performance. September’s occupancy rate also outpaced the market’s five-year average by about 200 bps and was roughly 300 bps ahead of the Midwest average (95%) and U.S. norm (94.4%). A strong renter pool helps to fuel demand in this small market which is home to the University of Illinois at Urbana-Champaign. The metropolitan area boasts a population of more than 236,800 people based on 2021 estimates from the U.S. Census Bureau, with around 57,000 students enrolled at the university. According to data from RealPage Market Analytics, there are 27,190 existing apartments in this small market which includes nearly 8,500 student competitive beds (conventional beds within close proximity to campus, often leased by students). If we focus on student competitive beds, occupancy proves even stronger at 98.4%. Such hefty demand fosters rent growth across the market. Although rent growth has fallen from the record high of 11.8% reached in January 2023, operators still pushed rents a strong 5.4% in September, above the market’s five-year average (3.6%). Yet, despite consistent increases over the past 34 months, rents in Champaign-Urbana ($988) remain reasonably priced at more than $800 below the U.S. norm ($1,821) as of September.

Here’s the Most Unexpected Twist of the Apartment Sector in 2023

2026-03-04T06:52:51-06:00

For me, this is the biggest surprise of the U.S. apartment market in 2023: The surge in apartment construction is softening the Class B market more than any other asset class. In high-supply submarkets, Class B rents fell more than twice as much as Class A over the past year. Yet in submarkets with no new supply, Class B performed right in line with Class A. It’s all about supply. The more supply in a submarket, the more likely rents are falling in ALL asset classes. But surprisingly, the biggest impact is to Class B. @include('site.elements.media.image', ['fileId' => 17840, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) In submarkets expanding their apartment count by more than 10% over the year-ending September 2023, effective rents in Class B fell 3.7%. By comparison, rents in those areas dropped 1.5% in Class A and 0.8% in Class C. And in submarkets expanding their supply by 5-10%, rents fell 2% in Class B compared to 0.6% in Class A and 1.5% in Class C. As examples: Class B rents fell 7.9% over the last year in Downtown Salt Lake City, 7.1% in Cedar Park (Austin), 6.7% in Avondale/Goodyear (Phoenix) and 4.2% in Downtown Seattle. Digging into this a lot in recent weeks, here’s what I think is happening: 1. The Narrowing Rent Gap In these high-supplied submarkets, we’ve seen rapid rent compression between new construction and Class B – in part due to hefty lease-up concessions. That makes it easier for Class B renters to move up into new units. In the highest-supplied submarkets (defined as those with more than 10% inventory growth), there’s only an 8% gap in average rents between new construction and Class B. In areas with 5-10% expansion, the gap is 12%. Deeper concessions can further narrow the gaps. @include('site.elements.media.image', ['fileId' => 17841, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) By comparison, in areas with little or no new supply, the rent gap is 23% – making move-ups muc...

9 Downtowns Where Apartment Supply Has Been Limited

2025-01-22T03:13:41-06:00

Apartment construction in urban cores has been prolific over the last decade. Some urban cores – such as Downtown Los Angeles, Central Nashville and Chicago’s The Loop – have all added over 18,000 units since 2013. In other urban cores, however, construction has been very limited. In nine urban core submarkets (among the nation’s 50 largest apartment markets), local apartment inventory has swelled by less than 2,500 units in the last 10 years, according to data from RealPage Market Analytics. And in one urban core – Riverside’s San Bernardino submarket – existing inventory has actually contracted by nearly 200 units during that time. The Riverside submarket also makes the list as existing inventory there grew less than 1,900 units in the last decade. Downtown Memphis has grown by about 2,400 units in the past 10 years, accounting for a comparatively large increase of about 28%. Southern Norfolk, likewise, grew total inventory about 20% in the last decade with an addition of about 2,200 units. Central Las Vegas and North Greensboro, meanwhile, grew urban core inventory less than 10% over the last decade.

September’s Final Student Housing Occupancy Reading Clears 95%

2026-03-04T06:52:51-06:00

Although August marks the final month of the pre-lease season in student housing, September usually brings a modest bump to in-place occupancy across the core 175 universities tracked by RealPage. Inevitably, some last-minute beds are filled right as students move back to campus, boosting the first occupancy reading of the Fall semester. And in Fall 2023, that was no different. September’s in-place occupancy reading hit 95%, a 0.6% boost to August’s final pre-lease rate of 94.4%. @include('site.elements.media.image', ['fileId' => 17798, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Fall 2023’s September boost was smaller than in past years, another likely indication that the pandemic recovery period is in the rearview mirror. Given just how much we saw momentum in pre-leasing normalize in the last few months of the Fall 2023 pre-lease season, it seems a fair assumption that performance will not revert back to those 2022 record highs in the near term. Still, pre-leasing ended the season in rock solid shape, it just didn’t reach last year’s all-time high readings. That 0.6% may not sound like a lot, but with an estimated 1 million purpose-build beds across the nation, that September bump accounts for over 6,000 additional beds leased. That small boost can make a difference, especially as some individual campuses. In the context of existing student housing stock, over 957,000 student housing beds were claimed for Fall 2023 as of August. That reading marked an all-time high and was about 14,000 beds higher than August 2022’s reading. But, of course, we get an onslaught of new supply each fall. In 2023 new supply totaled just under 37,000 beds across our core 175 universities. In terms of year-over-year change, this Fall 2023 marked the lowest annual change since that pandemic Fall of 2020. @include('site.elements.media.image', ['fileId' => 17799, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) In Fall 2024, mea...

Shelter Costs Keep Overall Inflation High

2025-01-22T03:13:41-06:00

Inflation held steady for a second month, remaining well above the Fed’s target rate. The price of goods and services paid by U.S. consumers rose 3.7% in the year-ending September, according to the Consumer Price Index (CPI) for All Urban Consumers measured by the Bureau of Labor Statistics. This increase matched the growth seen in August and was quite a bit ahead of the recent low of 3% from June. Annual inflation as of September was a touch above economists’ expectations of 3.6% and still notably beyond the Federal Reserve’s target of 2%. However, inflation has cooled considerably since reaching a 40-year high of 9.1% in June 2022. Core inflation, which strips out volatile food and energy categories, has displayed a downward trajectory in prices. That index edged down on a year-over-year basis from 4.3% in August to 4.1% in September, the smallest increase since September 2021. The cost of shelter, which is keeping the overall inflation rate high, rose 7.2% from a year ago. However, the shelter index has a well-documented lag effect. Excluding the cost of shelter, consumer prices were up just 2% year-over-year in September.

2024 U.S. Apartment Market Forecast

2026-03-04T06:52:51-06:00

For the third year in a row, many multifamily market performance stats have shown anything but “normal” trends. Still, 3rd quarter 2023 did show the market continues to work back toward a more normal, stabilized trend. Apartment absorption has been positive in each of 2023’s three quarters. Three straight positive quarters of absorption pushed annual absorption to 127,000 units – the first positive annual figure dating back to 3rd quarter 2022, according to data from RealPage Market Analytics. @include('site.elements.media.image', ['fileId' => 17757, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Occupancy has effectively stabilized at 94.5%, with September 2023 marking the third-straight month in which that occupancy rate held across the U.S. And while occupancy rates are down about 50 basis points from the start of 2023, this modest contraction pales to the 2022 year-to-date figure of 190 basis points. Further, 94.5% occupancy is just 20 basis points below the 2010s average which suggests further market normalization. Rent growth has struggled to gain consistent momentum in 2023 as operators have focused on stabilizing occupancy in lieu of larger rent increases. Rents are up about 2% year-to-date, though normal seasonal trends suggest that the year-end 2023 figure will come in below that 2% figure. @include('site.elements.media.image', ['fileId' => 17748, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) New supply appears to be the strongest deterrent of rent growth at a market (and especially submarket) level. Submarkets delivering the highest share of supply show a clear relationship for weaker rent performance. Conversely, areas delivering less supply have seen larger rent increases. @include('site.elements.media.image', ['fileId' => 17758, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Forecast Update: 4th Quarter 2023 Expectations for Calendar Year 2024 A few changes worth...

Small Florida Beach Town Logs Nation’s Worst Occupancy Loss

2025-01-22T03:13:41-06:00

Myrtle Beach suffered the nation’s most significant apartment occupancy loss in the past year. While this apartment market saw notable occupancy growth in 2021 and 2022, when remote workers were flocking to small beach towns along the Florida coastline, the influx of new supply has more recently taken its toll. Most of the largest 150 apartment markets in the U.S. were hit with occupancy decline in the year-ending September, but none suffered quite as much as Myrtle Beach, where the loss was significant at 350 basis points (bps). This decline left the September rate at 92.4%, one of the worst showings nationwide, according to data from RealPage Market Analytics. Putting downward pressure on occupancy in recent months, Myrtle Beach saw one of the nation’s biggest inventory growth rates in the past year. With a small existing stock of just over 47,000 units, this market saw the completion of nearly 2,700 new apartments in the past 12 months, which increased the existing base by a significant 6%. That’s a lot of new product for an apartment base that logged the delivery of only about 7,300 or so units in total in the decade before that. Next year’s completion total is similar, with another 5.6% increase scheduled.

Fall 2023 Student Housing Rent Growth Leaders

2025-01-22T03:13:41-06:00

Across the core 175 universities tracked by RealPage, annual effective rent growth in purpose-built student housing has hit record highs over the last year. As of September – the final month of the Fall 2023 pre-lease season – annual effective rent growth hit 9%, according to RealPage Market Analytics. At some schools, however, that rate was considerably higher. Arizona State University claimed the top spot in the nation for student housing rent growth in the year-ending September 2023, posting an incredible 24.5% increase. Rent growth at Arkansas and New Mexico nearly hit 20%. Several quintessential college towns appear on this list, such as Asheville (UNC), West Lafayette (Purdue) and Knoxville (Tennessee), which helps underscore a storyline we’ve been following for a while now that college towns can be very attractive student housing markets. Still, don’t expect to see these prolific rates next year. Much like the conventional market correcting sharply over the last year, RealPage expects student housing rent growth to cool in the Fall 2024 pre-lease season.

Submarkets With Low Inventory Growth Maintaining Rent Increases

2026-03-04T06:52:51-06:00

U.S. absorption rates are strong, and occupancy is holding steady, and all the while rent growth has vanished. Why? When comparing the average year-over-year rent growth among submarkets that fall into different distribution ranges of annual inventory growth, supply’s impact on rents becomes clear. Submarkets across the U.S. that have grown their existing base by less than 2.5% are still achieving modest (yet positive) rent growth, according to data from RealPage Market Analytics. Submarkets with 2.5% to 5% growth logged slightly less growth, and so on and so forth. @include('site.elements.media.image', ['fileId' => 17703, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) You can see that by the time you get to 7.5% or greater inventory growth, downward pricing adjustments become pretty substantial. Some good examples in this tranche include Dallas/Fort Worth submarkets Frisco & Keller, Round Rock in Austin and downtown Salt Lake City – all of which are growing apartment inventory by >10% but are cutting rents to a considerable degree. All said, this is a pretty simple explanation: more supply = increasing the quantity of available units in a geography = the supply/demand curve from your econ 101 class shifting to the right (or in applied terms, more availability resulting in less pricing power even when demand is constant).

Two Urban Core DC Submarkets Double in Size

2025-01-22T03:13:41-06:00

Washington, DC has not been one of the fastest growing markets in the nation over the past decade, but two of its 36 submarkets have seen prolific growth. Overall, DC added roughly 122,000 units to inventory in the past 10 years, growing its existing unit count 22%, according to data from RealPage Market Analytics. That growth rate ranked #44 among the nation’s core 150 markets. But two submarkets saw much more impressive growth. Of the 996 submarkets comprising the nation’s core 150 markets, just 24 have doubled in size over the past 10 years, and two of those were in Washington, DC. Of those 24 high growth submarkets, only seven were in urban cores. Both DC submarkets that have doubled in size over the past decade were in the urban core. Navy Yard/Capitol South was the second fastest growing submarket in the nation, behind Dallas’ Frisco area. In fact, Navy Yard/Capitol South nearly tripled its unit count in the past 10 years, growing from 7,644 units in 2nd quarter 2013 to 22,806 units in 2nd quarter 2023, a growth rate of 198%. Meanwhile, the Northeast DC submarket ranked #17, growing 110% with the addition of 14,449 units over the past decade, taking existing stock to 27,568 units. Both those urban core submarkets are expected to continue expanding at accelerated rates. In the year-ending 2nd quarter 2024, Northeast DC’s existing inventory is scheduled to grow 8.4%, while Navy Yard/Capitol South is expected to expand 7%. Both growth rates are well above Washington, DC’s expected average pace of 2.9% in the coming year.

U.S. Job Gains in September Twice the Level Predicted

2026-03-04T06:52:51-06:00

U.S. employers added a surprisingly strong number of jobs in September, while the unemployment rate held steady. To cool down the economy, the Federal Reserve has imposed 11 rate hikes since March 2022, taking the target range for the federal funds rate up to 5.25% to 5.5%. That took benchmark borrowing costs to the highest level in over 22 years. Those rate hikes have helped to slow inflation, but the pace of hiring is continuing to put upward pressure on wages. While the labor market outlook is uncertain, job growth remains resilient, and the unemployment rate remains low by historical standards. @include('site.elements.media.image', ['fileId' => 17684, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Employers added roughly 336,000 employees to payrolls in September 2023, according to the Bureau of Labor Statistics (BLS). That was the strongest month-over-month gain since January 2023 and well above August’s gain of 227,000 jobs. Furthermore, that recent job gain was double what economists were projecting (+160,000 to +170,000 jobs). Of note: The job counts for July and August were revised considerably higher. Upward revisions to July 2023 data showed 79,000 more jobs were added than previously reported, up to 236,000 positions. The August 2023 growth number was also revised up, increasing by 40,000 jobs to a total of 227,000 positions. With these revisions, employment gains in July and August combined were 119,000 jobs higher than previously reported. @include('site.elements.media.image', ['fileId' => 17683, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) While recent job gains were below the monthly average of around 399,000 jobs added in 2022, employers hired more worker in September 2023 than they did prior to the pandemic. From 2015 to 2019, the U.S. economy added an average of roughly 190,000 jobs each month. On an annual basis, the nation gained nearly 3.2 million jobs in September 2023. Although...

Northeast Region Leads the U.S. in Rent Growth

2026-03-04T06:52:51-06:00

As pricing power deflates across the nation, the Northeast apartment region has taken a record lead over other U.S. regions. The Northeast is already one of the most expensive apartment regions nationwide, and as such operators in this region generally don’t raise rents to the extent of other locales. When extreme price hikes hit the U.S. apartment market in 2021 and 2022, the Northeast did see historical rent growth, but not quite to the extent of some other areas (looking at you, South and West regions). @include('site.elements.media.image', ['fileId' => 17656, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) After the peak, when the inevitable fall of 2023 occurred, rental rates in the Northeast didn’t suffer as much necessary correction as other regions. In fact, while operators in the South and West have turned to price cuts recently, rent growth remains the norm in the Northeast and Midwest regions. The Northeast region is the national leader, with average effective asking rents up 3.1% year-over-year, according to September data from RealPage Market Analytics. That performance was ahead of the U.S. norm (0.1%) by 300 basis points (bps), the biggest lead the Northeast has had over the national average in at least a decade. In fact, that’s an inverted pattern from what the Northeast usually sees, as rent growth here tends to run at or behind the U.S. average. In 2013 through mid-2018, Northeast rent growth ran an average of about 130 bps below the national norm. Starting in September 2018 to October 2020, Northeast rent change ran right alongside the U.S. average, and then started falling behind again during the big hikes of 2021 and 2022. Still, rent growth of 3.1% is not a phenomenal performance in the Northeast, and is a shade behind the 10-year average of about 3.5%. Instead, this nation-leading performance is less about big hikes in the Northeast and more about the loss of rents in other regions nationwide, due to supply pres...

RealPage Economy Express Episode 12

2025-01-22T03:13:41-06:00

Episode 12: Has consumer confidence wavered? U.S. home sales declined more than 15% in the year-ending August, according to the National Association of Realtors, leading to a shift toward renting. The multifamily construction sector is booming, with a 50-year high in activity, and rental rates have flattened, helping to reduce inflation. In a positive sign, the Core Personal Consumption Expenditures (PCE) price index increased 3.9% in the past year, which is down from the 4.3% showing from July. Employment growth in September fell short of expectations, according to ADP Research Institute. This could impact the Federal Reserve's decision on a planned rate hike in November. The economy faces the possibility of a government shutdown and persistent inflation, and concern about a potential recession in 2024 lingers. Consumer confidence – which plays a crucial role in influencing the trajectory of the U.S. economy – has been wavering. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

This Small Midwest Market Leads the Region for Job Growth

2025-01-22T03:13:41-06:00

The Midwest region leader for job growth in the past five years is a small market with roughly 272,000 people. Sioux Falls added 14,700 jobs in the past five years, growing its existing employment base by 9.2%, according to the Bureau of Labor Statistics. To show the sheer size of that measure, Fresno and Sacramento also logged annual job growth around 9%. Other Midwest markets ranking among the nation’s top third for job growth during the past five years were Indianapolis and Springfield, where the job base was up by roughly 8% year-over-year. Sioux Falls was one of the more stable job markets during the COVID-19 pandemic and has seen notable population growth. In the past five years, the population has increased by 10.1%, according to the latest data from the U.S. Census Bureau. As a result of the recent population influx and stable job market, apartment occupancy has tightened, and developers have responded by kicking up the volume of new supply under way.

Apartment Demand is Normalizing, But Soaring Supply Flattens Rents

2026-03-04T06:52:51-06:00

Apartment demand continues to rebound in 2023, even as rent growth flattens. In other words: It’s rent disinflation without demand destruction. Why? Supply, supply, supply. Apartment completions in 3rd quarter soared to the highest levels since the 1980s. It’s a good reminder that the challenges facing the apartment sector today have nothing to do with demand fundamentals, and everything to do with a 50-year high in apartment construction combined with expense pressures and the rapid spike in interest rates upending the financing market. The U.S. apartment market absorbed 90,827 units in 3rd quarter 2023, according to RealPage Market Analytics. That doesn’t compare to historically robust demand of 2021, but it’s still the largest quarterly tally in nearly two years and it’s roughly in line with the long-term seasonal norms. @include('site.elements.media.image', ['fileId' => 17588, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Don’t give high mortgage rates all the credit, either, as the correlation has been weak. Apartment demand was strongest in 2021 when mortgage rates were lower and more homes were selling. Apartment demand then evaporated in 2022 when rates initially jumped and sales slowed. Rather, it appears slowing inflation and a still-strong job market are boosting consumer confidence and, in turn, spurring household formation among young adults most likely to rent apartments. One contributing factor: The influx of new supply has rapidly shifted the balance of power in the rental market back to renters. New apartment completions jumped to the highest level in 30+ years, with more than 128,000 units coming online nationally. @include('site.elements.media.image', ['fileId' => 17594, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Simply put: Renters today have a lot more options thanks to all the new supply. Occupancy inched back another 10 bps in September, landing right around the long-term averag...

These Schools Will Get the Most New Student Housing Supply in 2024

2026-03-04T06:52:51-06:00

In Fall 2024, just over 28,000 new student housing beds are expected to come online. And while that’s subject to change due to financing challenges, economic feasibility and more, that number represents at least a pretty good representation of expected supply. @include('site.elements.media.image', ['fileId' => 17547, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) At 11 campuses, over 1,000 beds are expected to come online in 2024 alone, according to RealPage Market Analytics. The list of Fall 2024 supply leaders mostly includes big name state schools, led by nearly 2,900 beds expected at the University of Wisconsin at Madison alone. Wisconsin claims one of the nation’s highest occupancy rates for purpose-built student housing beds, so new supply will likely unlock some pent-up demand there. Still, those 2,850 beds represent a 50% total inventory increase at that school. Put another way, for every two beds that exist off campus in the market today, one more will work through lease up next year. UT Austin, a regular on this list, claims the no. 2 spot with nearly 2,500 beds expected in Fall 2024 – and that comes on the heels of 2,840 beds delivered in Fall 2023 and will hit before another 1,200 beds are expected in Fall 2025. In just three years, UT Austin has delivered about 3,400 beds, representing about half of its total from the 2010s decade. Florida State is another regular on this list, though so far in the 2020s decade, construction has been mild here. Meanwhile a few of these schools like Cincinnati, George Mason and Florida International may stand out as they do not fit that prototypical Power 5, state flagship university mold. @include('site.elements.media.image', ['fileId' => 17548, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '740']]) Meanwhile, another 19 schools will receive between 500 and 1,000 beds next fall. Another 16 schools will get up to 500 new beds in Fall 2024. A couple schools on these two...

Rent Growth Remains Positive in the Northeast and Midwest

2025-01-22T03:13:41-06:00

As apartment rent performance across the nation trends down, rent growth in the Northeast and Midwest is outperforming. The Northeast leads the U.S. with operators pushing effective asking rents 3.2% on average in the year-ending August 2023, according to RealPage Market Analytics. Following close behind, rents in the Midwest were up 2.7% in the 12-month period. While both of these performances were well above the U.S. average (0.3%), rates are still below five-year norms, which were inflated by double-digit performances in much of 2021 and 2022. While pricing power has been lost everywhere, however, the Northeast and Midwest performances remain positive, as operators in the South and West turn to rent cuts. Historically, rent growth in the Northeast and Midwest has hit at or below U.S. norms. Over the last five years, rent growth averaged 4.8% in the Northeast and 4.1% in the Midwest, both behind the U.S. norm (5.1%). These are obviously very different regions, in demographics, population and monthly rental rates. With expensive markets like New York, Boston and Newark, the five-year average for rents in the Northeast ($1,847) outpaced the U.S. norm of $1,555 by nearly $300. Conversely, rents in the Midwest ($1,176) ran about $400 below the national norm. As of August 2023, that performance story continued with Northeast rents ($2,210) above the nation’s norm ($1,824) and Midwest rents ($1,395) below the U.S. average.

Multifamily Starts Plunge as Completions Increase

2026-03-04T06:52:51-06:00

The annual rates for multifamily permits and starts had been running nearly coincidentally since the beginning of the year but diverged sharply in August, perhaps indicating funding and other issues may be delaying starts. The seasonally adjusted annual rate (SAAR) for multifamily starts dropped 26.3% from July’s annual rate to 334,000 units and was down 41% from last year, according to the latest release from the Census Bureau. Meanwhile, completions of multifamily units increased 45.8% from July to 433,000 units, an increase of 32% from last August. The forward-looking building permits rate increased 14.8% from July’s SAAR to 535,000 units but that annual rate was 17.7% below last August’s annual rate. The number of multifamily units currently under construction (995,000 units) was virtually unchanged from last month but up 13.5% from last year, as construction delays push some projects further back. @include('site.elements.media.image', ['fileId' => 17441, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Single-family permitting continued edging up with the August pace increasing 2% from July and 7.2% from last year to 949,000 units. The annual rate for single-family starts dipped 4.3% in August to 941,000 units but was still 2.4% greater than a year ago. The moderate monthly increase in multifamily permitting brought the rate of total residential permitting up 6.9% from July to 1.543 million units but the overall trend dropped the year-over-year rate by 2.7%. The stronger declines in multifamily starts brought total residential starts down 11.3% from last month and 14.8% from last year to 1.283 million units. Despite increasing permitting and starts, single-family completions were down 6.6% for the month and 5.8% for the year to 961,000 units. The number of single-family units under construction was unchanged from July’s pace at 676,000 units but that was 16.3% less than one year ago. The number of multifamily units authorized but...

Midwest Markets Lead the U.S. for Apartment Rent Growth

2025-04-21T16:36:31-05:00

For the first time, the Midwest region holds a notable lead in apartment rent growth performance. This is less about big price increases in the Midwest, however, and more about rent cuts in the rest of the U.S. driven by increased supply volumes. Effective asking rents in the Midwest were up 3.1% in the year-ending August, according to RealPage Market Analytics. While that showing was a bit behind the region’s decade average, it’s notably ahead of what is happening in most other regions nationwide. In fact, every other region is logging annual rent cuts, except the East Coast, where growth is more moderate – and more apart from regional norms – at 2.5%. This all comes down to increased apartment completion volumes. With most regions of the U.S. seeing increased deliveries weigh down on pricing power, the Midwest and East Coast have seen apartment markets swelling at a slower pace, giving operators some breathing room.

Following 2022 Peaks, Urban Core Apartments Lose Pricing Power

2026-03-04T06:52:51-06:00

Pricing power has waned recently across the U.S. apartment market, as new supply has put downward pressure on rents. Some urban core submarkets, however, have experienced a more extreme loss of pricing power in the past year. In the U.S. overall, annual effective asking rent change has flattened, with negligible growth of just 0.3% in the year-ending August 2023, according to RealPage Market Analytics. This was quite a change from the double digit rent growth of 10.6% just a year ago. Among the nation’s largest 50 apartment markets, every single urban core submarket has lost at least some pricing power in the past year, though most of them have not suffered a downturn as deep as what was seen in the U.S. overall. However, a few key urban cores – mostly located in the South region – are suffering a worse fate. Many of these areas logged historical peaks in rent growth in 2022 and are now seeing a notable course correction. @include('site.elements.media.image', ['fileId' => 17396, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Downtown Salt Lake City/University is the urban core that has lost the most pricing power during the past year. In the year-ending August 2023, in fact, effective asking rents were cut 6.5%, the worst showing among urban cores nationwide. This performance was quite a shift from annual growth of 15.2% seen just a year ago. Putting downward pressure on rents, Downtown Salt Lake City/University also saw one of the nation’s largest inventory increases among urban cores in the past year, as the delivery of over 2,000 units increased the existing base here by 10.5%. In fact, supply pressure across much of the Salt Lake City apartment market pushed occupancy down to a decade low in recent months, giving operators little choice but to pull back on pricing. Other urban cores with deepest rent cuts in the year-ending August 2023 were Central Nashville and Midtown Atlanta, with annual price declines of roughly 4% to 5%. Con...

Apartment Concession Usage Surges in Small Florida Market

2025-01-22T03:13:41-06:00

Throughout the pandemic recovery period, apartment concession utilization in the small Florida beach market of Port St. Lucie/Sebastian/Vero Beach ran pretty low, usually hovering well below the U.S. norm. In mid-2022, however, the percent of units offering concessions began to tick up and now stands at one of the highest rates in the nation, among the country’s 150 largest apartment markets. As of August, one in five apartment units (19%) in Port St. Lucie offered a concession on rent, compared to just 9% across the nation, according to RealPage Market Analytics. Rents in Port St. Lucie have also increased above the national norm since the pandemic. In February 2020, rents in Port St. Lucie ran more than $200 below the national norm of $1,427. As of August 2023, however, rents are approximately equal, with Port St. Lucie ($1,811) rents within a few bucks of the national norm ($1,824).

Midwest Markets Lead in Home Price Gains Over Past Year

2025-01-22T03:13:41-06:00

U.S. home prices continued to rise in July amid historically low levels of inventory. More than half of the markets tracked recorded an increase in prices over the past year, led by two Midwest markets. Meanwhile, some West region markets saw deep annual price declines. Overall, U.S. home prices were up 0.6% from June to July, according to the seasonally unadjusted S&P CoreLogic Case-Shiller U.S. National Home Price Index, which measures average home prices across the nation. That was the sixth month in a row prices have increased. On an annual basis, home prices were up 1% as of July 2023. While that was the largest year-over-year increase in five months, it was well below the historic peak of 20.8% from March 2022. Looking at more granular results, the S&P CoreLogic Case-Shiller 20-City Composite Index, which tracks prices in the 20 largest metros, posted a 0.6% month-over-month gain and 0.1% growth year-over-year. As of July, 19 of the 20 cities in the index reported month-over-month price increases, with only Portland (-0.2%) recording a slight pullback. The largest monthly increase was in Las Vegas (1.1%), followed by Cleveland and Phoenix (both at 0.9%). On an annual basis, 12 of the 20 metro areas recorded higher prices, with the biggest hikes in Chicago (4.4%) and Cleveland (4%), followed closely by New York (3.8%). The deepest pullbacks were in West region markets: Las Vegas (-7.2%), Phoenix (-6.6%), San Francisco (-6.2%) and Seattle (-5.5%).

Charlotte Neighborhood Doubles Apartment Supply Volumes

2026-03-04T06:52:51-06:00

The Charlotte apartment market is no stranger to big supply volumes, but one submarket in particular has more than doubled its inventory base in the past decade. New apartment supply across the U.S. has been booming recently. But some of the nation’s most significant apartment development activity over the past decade has taken place in Charlotte, with inventory growth far exceeding national norms. In fact, among the nation’s 50 largest markets, Charlotte has witnessed the fastest expansion rate over the past 10 years. @include('site.elements.media.image', ['fileId' => 17344, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '630']]) Across the Charlotte market, existing inventory increased by 75,062 apartments in the last decade, equaling an expansion rate of 51.6%, according to data from RealPage Market Analytics. That growth rate ranked #1 among the nation’s largest 50 markets and took Charlotte’s existing inventory to 220,656 units as of mid-2023. For perspective, the national average growth pace over the past 10 years was 18.6%. Most recently, Charlotte had a net increase of 11,028 units during the year-ending 2nd quarter 2023, for an annual growth rate of 5.3%. That pace of expansion was more than double the U.S. average of 2% and placed Charlotte #3 among the nation’s top 50 markets, only bested by Nashville (6.2%) and Jacksonville (5.4%). At the end of 2nd quarter 2023, Charlotte had 33,759 units under construction, a volume set to increase the existing stock by another 15.3%. Among the nation’s 50 largest apartment markets, only Nashville (16.3%), Raleigh (15.7%) and Austin (15.6%) had a higher proportion of construction activity. In the coming year, Charlotte’s apartment stock is set to grow by 9.9% with the addition of about 22,000 units. That would be the market’s fastest expansion rate over the past decade and the third-fastest growth pace among the nation’s largest markets, behind Austin (11%) and Raleigh (10%). @include('site.e...

Metro Job Gains Moderate to Pre-Pandemic Levels

2026-03-04T06:52:51-06:00

Like monthly employment gains at the national level, annual job gains at the metro level have normalized closer to pre-pandemic averages but remain slightly elevated, according to the latest data release from the Bureau of Labor Statistics. Comparing the average annual employment gain for August of 2018 and 2019 (accounting for seasonality) to the August 2023 employment gain for each of RealPage’s top 150 markets, roughly 4,000 more jobs were added to each local economy (on average) than in the two years before the COVID-19 pandemic. However, most of that is in the top 10 markets, which average close to 30,000 more jobs per market compared to pre-pandemic norms. Although still elevated from pre-pandemic levels, the trend is slowing toward normalcy. Altogether, the top 10 markets created 73,500 fewer jobs in the 12 months-ending August than the same period through July, a decrease of 8%. Additionally, the sum of jobs gained in the top 10 markets in August is less than half the total for the same 10 markets one year ago. @include('site.elements.media.image', ['fileId' => 17309, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Eight of last month’s top 10 markets returned to this month’s list with just the first three remaining in place and several other markets changing rankings. New York continues to lead the nation in annual gains with 174,400 new jobs for the year-ending August, down about 15,000 jobs from last month but more than one-third higher than the market’s recent pre-pandemic average. Dallas remained in the #2 spot with an annual gain of 112,700 jobs, about 17,000 jobs fewer than last month and 82,900 less than last August’s annual total. Los Angeles’ annual job gain total slipped about 11,000 jobs from July’s at 99,700 jobs but LA is up more than 47,000 jobs from their 2018-2019 average despite the ongoing writers and actors strike locally. Philadelphia switched places with Houston at the #4 spot with 90,600 jobs gained, dow...

RealPage Economy Express Episode 11

2025-01-22T03:13:41-06:00

Episode 11: No rate hikes for now, but will there be more in the near term? Privately‐owned housing completions were up by 3.8% in August, according to a recent report from the U.S. Census Bureau. On the other hand, multifamily permits continue their downward descent. August marked a second month of increased inflation, though excluding housing from the measure does paint a more positive picture. In a recent press conference, the Fed resolved to maintain the current interest rates for now but hinted at more rate hikes before the year ends. In good news, the Fed has essentially ruled out a recession in the upcoming two quarters. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

Concession Usage in Minneapolis More Than Doubles Midwest Average

2026-03-04T06:52:51-06:00

Apartment operators in the Minneapolis-St. Paul-Bloomington market have used concessions at elevated levels in recent years. The percentage of units offering discounts began to pick up in late 2019, continued trending upward through 2020 and has remained high since. Prior to the pandemic, concession usage in Minneapolis registered well below the U.S. and Midwest norms. However, over the past three years, that trend has reversed course. As of August 2023, operators in Minneapolis were offering concessions on 14.1% of stabilized units in the market, according to RealPage Market Analytics. That rate was more than double the Midwest average of 6.5% and well above the national norm of 9%. In addition, Minneapolis’ recent concession usage was the largest among the top 10 Midwest markets and ranked fifth among the nation’s top 50 markets. @include('site.elements.media.image', ['fileId' => 17279, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Minneapolis is the outlier among the 10 largest Midwest markets. The other nine large markets in the Midwest ranked in the bottom half of the top 50 markets nationally, with the number of units offering concessions in those Midwest markets ranging from 2.9% in Milwaukee to 7.6% in Chicago. @include('site.elements.media.image', ['fileId' => 17278, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Of the units with concessions in Minneapolis, operators are offering an average discount of 8.6% off the effective asking rent, equating to 31.4 days of free rent per year. That’s well above the U.S. average (26.3 days) and Midwest region norm (25.3 days). Driving the use of discounts in Minneapolis is weakened occupancy amid elevated supply levels. Over the past three years, an average of roughly 9,100 units delivered annually, while concurrent demand totaled 6,700 units. Prior to the pandemic, demand and supply in Minneapolis mostly balanced, with an average annual supply load of about...

Rent Growth in Springfield, MA Defies U.S. Trends

2025-01-22T03:13:40-06:00

Most of the nation’s apartment markets were recording double-digit rent growth a year ago, but Springfield, Massachusetts just recently achieved that status. In the year-ending July, Springfield recorded an increase in effective asking rents at a historic high of 11%. Though rent growth eased slightly in the year-ending August, the 9.9% price hike was still among the largest annual rent increases on record for the market. Springfield’s recent rent growth continued to rank #2 nationally and was notably ahead of the U.S. average (0.3%), according to data from RealPage Market Analytics. This small Northeast market with a population of around 695,000 and roughly 46,000 existing apartment units averaged annual growth of just over 3% in the 10 years leading up to the pandemic. And during the pandemic, Springfield didn’t experience the massive rent change swings that most other markets across the country witnessed. In fact, Springfield avoided year-over-year rent cuts and didn’t venture into double-digit annual rent growth until April 2023. Despite rent increases of late, Springfield remains relatively affordable for renters. Effective asking rents in the market averaged $1,702 in August 2023, a rate that was well below the Northeast region average ($2,210) and below the U.S. norm ($1,824). Springfield has seen very little new supply, with only 335 units coming online over the past 10 years, with most of those units delivering in 2018 and 2019. With limited new supply, occupancy in Springfield has remained tight, averaging 97.6% over the past decade and registering at 97.1% as of August 2023.

Flip the Script: Wage Growth Is Outpacing Rent Growth Again

2026-03-04T06:52:51-06:00

There’s a significant plot shift occurring in the U.S. rental housing market: Wages are outpacing rents again, and by a widening margin. And all signs suggest more of the same for the near future. Year-over-year U.S. wage growth has topped effective apartment rent growth for nine consecutive months. Through August 2023, wages topped rents 5.3% to 0.3%. The income data comes from the Federal Reserve Bank of Atlanta’s Wage Growth Tracker, while the rent data reflects effective asking rents for market-rate apartments tracked by RealPage. @include('site.elements.media.image', ['fileId' => 17242, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '574']]) Rent growth is rapidly decelerating due to an historic surge in new apartment construction. That wave came about, in part, due to 2021’s perfect storm of ultra-low occupancy, high rent growth plus low interest rates creating a fertile landscape for apartment construction to surpass 50-year highs. During a 19-month stretch in 2021-22, rents cumulatively grew almost twice as fast as wages. But that gap is quickly shrinking, and it wouldn’t be shocking if it’s entirely erased by the end of 2024. Rent growth is expected to remain muted (and even remain negative in some markets). Even a moderating pace of wage growth would likely be enough to close the gap created in 2021-22. This is a very positive shift for affordability ... and by extension, for rental housing demand. Improved affordability should widen the demand pool to some degree. Rent-to-income ratios hit a decade high earlier this year at 23.1% (among actual lease signers in the RealPage dataset), but that number will likely tick back below 23% before year end. Furthermore, IF rents continue to flatten/fall (near certainty), inflation continues to cool (probably?) and employment remains healthy (less certainty), that would suggest we’re entering a stretch where renters have increased spending power. Upper-income renters, in particular, have more...

There Are 73 Million More Working-Age Residents Today Than in the 70s

2025-01-22T03:13:40-06:00

More than 1 million market-rate apartment units are in various phases of construction. And yes, today’s construction total marks a four-decade high which has led some to sound the horn for broad-based overbuilding a la the 1970s. Here’s the catch though: in the 1970s, the volume of completions at its peak represented 6.5% of all existing inventory. Today, the peak volume of completions should account for a comparatively small 3.4% (nearly half as large as the 1970s boom). Additionally, the U.S. working age population in 1977 (the start of the data series) was 135 million, according to data from the U.S. Census Bureau. Today’s estimate shows 209 million. From that perspective then, it’s fair to say that local pockets of oversupply will occur, though demand will eventually catch up. But it’s not an apples-to-apples comparison to say that today’s construction volumes are going to result in drastic oversupply of multifamily housing units across the nation.

Class A Rent Performance Weighing Down Some Apartment Markets

2026-03-04T06:52:51-06:00

Across the U.S., apartment rent growth all but halted on an annual basis in August, though market-level readings varied. Class A rent change, however, boosted nationwide performance on aggregate. As of August, annual effective rents climbed 0.7% in the Class A space, followed by stagnant rent change (0.0%) in Class B units and a weaker reading (0.4%) in Class C units. Overall annual effective asking rent change was just 0.3% across the U.S. as of August, according to data from RealPage Market Analytics. @include('site.elements.media.image', ['fileId' => 17048, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) In some markets, however, that storyline runs counter to current rent performance by product class. In several of the nation’s largest apartment markets, rent change in Class A units – often a proxy for new supply – is weighing down marketwide readings. In some markets, Class A rent change runs 700-plus basis points (bps) below Class B and C readings and as deep as 300-plus bps below market averages. @include('site.elements.media.image', ['fileId' => 17049, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Cincinnati marks arguably the most extreme example of this Class A underperformance. As of August, Class A rents were growing just 0.5% on an annual basis in Cincinnati, compared to readings above 5% in Class B and Class C units. At a 3.8% annual rent growth reading, Cincinnati is one of the nation’s top rent growth performers in August, ranking no. 2 among the nation’s 50 largest markets, behind only Newark. About half the markets on this list follow a similar trend. Columbus, Chicago, Miami and Indianapolis all rank among the top 10 markets nationwide for rent change in the year-ending August. The Midwest markets on this list also generally have low supply pressure that tends to impact Class A rents more than less expensive product classes. The remaining markets present a mixed bag of results. The West...

Florida Apartment Supply Pressuring Rent Growth

2025-01-22T03:13:41-06:00

Florida is one of the nation’s fastest growing apartment regions, and all that new supply is putting downward pressure on rent growth. Among the eight geographic regions defined by RealPage, Florida is the third-fastest growing area, with net inventory growth of 3% in the year-ending 2nd quarter 2023. That performance followed the Carolinas and the Mountains/Desert region, but not by much. While Florida has seen some of the nation’s strongest apartment demand in recent years, even solid absorption has not been enough to keep up with big volumes of new supply. And those intense completions volumes are putting downward pressure on rents. Just a year ago, annual effective asking rent growth in the Sunshine State reached into the double digits, but prices are now in decline, falling 0.7% year-over-year as of August. For more information on the state of the Florida apartment region, including forecasts, watch the webcast Market Intelligence: Q3 Florida Update.

South Leads Nation for Construction of Build-to-Rent Homes

2026-03-04T06:52:51-06:00

Build-to-rent construction is on the rise – literally – throughout the U.S., but nowhere more prolifically than in the South region. As of early September, the South easily leads the nation for build-to-rent, or BTR, construction with more than 61,200 units underway, according to RealPage Market Analytics. That total tallies more than the other three regions combined and outpaces the next closest region (West) by more than two-to-one. @include('site.elements.media.image', ['fileId' => 17178, 'attributes' => ['border' => '0', 'width' => '3202', 'height' => '1987']]) Across the U.S., there are roughly 104,160 BTR units under construction (includes properties in lease-up where construction is ongoing), primarily concentrated in the South and West. BTR, as RealPage defines it, includes single-family housing that is fully detached, semi-detached (semi-attached, side-by-side), row houses, duplexes, quadruplexes and townhouses built for rental. In the South, some 61,234 BTR units are expected to complete through 1st quarter 2026. A total of 28,488 units are projected to complete by the end of 2025 across the West. The Midwest has 12,571 units under construction completing through mid-2025. Meanwhile, a total of 1,687 units are expected to complete over the next 17 months in the Northeast, the nation’s laggard for BTR construction. High interest rates, limited inventory of existing single-family homes and other market headwinds foster continued interest in BTR with many would be homeowners choosing rental properties instead of homeownership. Thus, developer and investor appetite remains high for this rental product. More than 60 developers are responsible for the over 100,000 BTR units under construction with a handful of that group building massive volumes of BTR. @include('site.elements.media.image', ['fileId' => 17179, 'attributes' => ['border' => '0', 'width' => '1000', 'height' => '621']]) Among those developers, Scottsdale, AZ-based Cavan Cos. (3,408 units) lea...

August Marks a Second Month of Increased Inflation

2025-01-22T03:13:41-06:00

The price of goods and services increased for the second month in a row, capping the steady decline U.S. inflation saw for 12 straight months and getting further away from the Fed’s target. Costs were up 3.7% in the year-ending August, according to the Consumer Price Index (CPI) for All Urban Consumers measured by the Bureau of Labor Statistics. This increase topped the 3.2% growth seen in July and was quite a bit ahead of the recent low of 3% from June. Annual inflation as of August was a shade ahead of economists’ expectations of 3.6% and was notably beyond the Federal Reserve’s target of 2%. However, inflation has cooled considerably since reaching a 40-year high of 9.1% in June 2022. Accounting for over half of August’s price increase was the cost of gasoline, though the shelter index – which was up for the 40th consecutive month but also has a well-documented lag effect – also contributed. Excluding volatile food and energy prices, the core CPI increased 4.3% during the year-ending August, which was the lowest measure since September 2021.

Apartment Performance Rapidly Cooling in Atlanta

2026-03-04T06:52:51-06:00

Solid apartment demand in Atlanta hasn’t been enough to keep up with all-time-high new supply levels, pushing occupancy and rent change to recent lows. Along with most other Sun Belt apartment markets, Atlanta performed well in the past few years, bolstered by a thriving economic recovery after the COVID downturn of 2020 and solid in-migration from more expensive areas of the country. While Atlanta was a supply powerhouse before this influx of new residents occurred, the sudden rush to the market inspired apartment developers to double down on their already sizable development pipeline. And now, in 2023, apartment market fundamentals in Atlanta have cooled as supply does what it is meant to do – balance out the market and put downward pressure on rents. @include('site.elements.media.image', ['fileId' => 17043, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) At first glance, 455 units of demand in the year-ending 2nd quarter seems low, and it is, especially in comparison to the absorption this market has seen over the past five to ten years. But 2nd quarter demand, specifically, was very strong – some of the best nationwide – at nearly 3,000 units, making up for previous losses and pushing the annual volume into positive territory. Demand has been unable to keep up with concurrent delivery volumes, however. New apartment deliveries hit an all-time high of 16,715 units in the year-ending 2nd quarter. Only Phoenix logged more new completions in the past year. And apartment developers aren’t finished with Atlanta just yet. Another 36,575 units are under construction here, a volume set to grow the existing base another 3.9%. Roughly 22,000 of those units are scheduled to complete in the coming year, which will hit another all-time high Additionally, Atlanta was #4 nationwide for permits as of July, besting only the construction powerhouses of New York, Houston and Dallas. Adding to the investment attention spotlight on Atlanta, the market...

Carolinas Apartment Market Holding Up Despite Elevated Supply

2025-01-22T03:13:40-06:00

Apartment demand has supported rent growth in the Carolinas, despite nation-leading supply volumes. In the past year, the overall existing apartment base of the North Carolina and South Carolina has grown by 3.6%, more than any other region nationwide. And unlike other areas logging big inventory growth rates, the Carolinas managed to hold onto at least some growth in effective asking rents the past year – though that growth was mild at 0.3%. Meanwhile, the two other regions to log inventory growth of 3% or more (Mountains/Desert and Florida) suffered annual price declines. Supporting at least some rent growth in the Carolinas in the past year, apartment demand is holding up well, after recovering from the doldrums of 2022. While demand is notably behind concurrent new supply volumes, the strength of absorption here is what has allowed operators to hold onto at least mild rent growth. For more information on the state of the Carolinas apartment region, including forecasts, watch the webcast Market Intelligence: Q3 Carolinas Update.

Final Fall 2023 Pre-Lease Rate Falls Below Last Year’s Record

2026-03-04T06:52:51-06:00

In the final pre-lease reading of the Fall 2023 academic year, the student housing pre-lease rate fell a bit shy of last year’s all-time high, but still well above the pre-pandemic norm. As of August, 94.4% of beds at the core 175 universities tracked by RealPage Market Analytics have been leased for the Fall 2023 school year. That was marginally below August 2022’s record clip of 95.7%. A typical pre-COVID final pre-lease reading hovered around 90%. The monthly pace of pre-leasing slowed in the final months of the pre-lease season, as is typical toward the end of the summer when there are both fewer beds available to lease and students on campus to lease them. @include('site.elements.media.image', ['fileId' => 16999, 'attributes' => ['border' => '0']]) Broken out by distance from campus, those properties within a half mile of campus and also those more than one mile from campus reported essentially the same final pre-lease rate of 94.6% and 94.5%, respectively. Properties within a half mile to one mile of campus reported a final pre-lease rate of 93.1% for the Fall 2023 school year. Not every school reported uniform final pre-lease rates. At 20 of the top 175 schools, pre-leasing hit 100%, meaning no beds remain to be leased for latecomers. At another 24 schools, the pre-lease rate hovered at or above 95%. At only a handful of challenged schools did the pre-lease rate fail to clear 80%. Those schools included University of Nevada – Reno, Sam Houston State University, University of West Georgia, University of North Carolina at Pembroke, University of California at Santa Barbara and University of Washington. @include('site.elements.media.image', ['fileId' => 17004, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '776']]) August’s final annual effective rent change reached 9.3%, easily an all-time high. August 2022’s then-record rate of 5.9% stood head and shoulders above a typical pre-COVID annual effective rent growth rate of under 2%. In 2023...

Round Rock/Georgetown Drives Austin Demand in 2nd Quarter

2025-01-22T03:13:40-06:00

The Round Rock/Georgetown submarket drove absorption in the Austin apartment market during 2nd quarter 2023 with demand for 1,058 units, according to data from RealPage Market Analytics. Those units accounted for nearly 36% of 2nd quarter demand in Austin (2,949 units). In fact, three northern suburbs generated about 70% of absorption in Austin during the quarter: Round Rock/Georgetown (35.9%), Pflugerville/Wells Branch (19.7%) and Cedar Park (14.8%). On an annual basis, Round Rock/Georgetown also led the market with demand for 2,125 units in the year-ending 2nd quarter 2023, or 47.3%. A suburb about 15 miles north of downtown Austin, Round Rock/Georgetown is home to companies like Dell, Emerson Automation Solutions and AirBorn. Austin, the Texas state capital, ranked seventh overall for demand across the nation’s 150 apartment markets and was one of the 114 markets with positive demand in 2023’s 2nd quarter. A tailwind for demand, job growth in the Austin-Round Rock market has been explosive since the pandemic. In June, employment in Austin sat roughly 184,600 jobs or about 16% above the pre-pandemic level from February 2020.

RealPage Economy Express Episode 10

2025-01-22T03:13:40-06:00

Episode 10: As employment and inflation stabilize, what is the driving force behind economic growth? While the U.S. labor market added more jobs than expected in August, gains were still shy of recent norms, suggesting a slowdown in employment growth. The BLS reports the Labor Force Participation Rate has increased to 62.8%, the highest level in over three years. The driving force in economic growth is inflation, which remains a concern. According to the Bureau of Economic Analysis, the Personal Consumption Expenditures (PCE) index rose to 4.2% in July. The Real GDP grew at a favorable annual rate of 2.1% in 2nd quarter 2023. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

Apartment Rent Growth Continues its Rapid Descent in August

2026-03-04T06:52:50-06:00

For the first time in decades, U.S. apartment rents are rapidly flattening (and could soon go negative) at the same time demand remains healthy and the economy continues to produce jobs. Why? Apartment construction is at 40+ year highs – shifting the balance of power to renters. Year-over-year, same-store effective asking rents for new leases inched up just 0.28% in August and remained on track to potentially turn negative by September. That’s a sharp turn from one year ago, when rent growth measured 11%. @include('site.elements.media.image', ['fileId' => 16923, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) In the three previous periods when rents fell flat to negative (early 2000s, 2009 and 2020), rents fell as recessions hit and demand evaporated. But that’s not the story in 2023. Demand remains healthy, stabilizing occupancy in the mid 94% range since January – roughly in line with the long-term norms. Rents are flattening in 2023 because the huge volume of new supply hitting the market is giving renters a lot more options – leading to more turnover among deal-shopping renters. In turn, operators are giving on price to compete for renters and to protect occupancy and cashflow. As a result, rent growth has trailed wage growth throughout most of 2023 – a positive shift for affordability following a stretch where rents outpaced wages. Median wages were up 5.7% annually as of July, according to data from the Federal Reserve. RealPage data shows median rent-to-income ratios for new lease signers at 23.1% as of earlier in 2023, and that number could inch down in coming months. Supply volumes will remain elevated through 2024, which means significant headwinds on rents until 2025. New construction starts have materially dropped off in 2023 due to financing issues and other challenges, pointing to significantly lesser supply by the second half of 2025 and into 2026. The rent slowdown likely won’t show up in the Consumer Price Index unti...

Syracuse Boasts Nation’s Highest Apartment Retention Rate

2025-01-22T03:13:40-06:00

Market-rate renters in Syracuse renewed their apartment leases 66.7% of the time over the last 12 months, marking the highest retention rate in the country among the nation’s 150 largest apartment markets. That rate outpaced the national norm of roughly 53% over the same period, according to data from RealPage Market Analytics. Three other small New York markets also ranked among the top 25 for resident retention on a trailing 12-month average hovering around 60%: Buffalo, Rochester and Long Island. No surprise, New York also ranked among this group at #6. However, monthly retention rates fell significantly across all New York small markets with the majority of markets falling to around 50%, likely a reflection of renters taking advantage of warmer summer months to relocate. Meanwhile, occupancy in Syracuse ticked down to 96.6% in August, down 10 basis points (bps) month-over-month and 70 bps year-over-year, still standing well above the U.S. norm of 94.5%.

U.S. Job Growth Exceeds Expectations in August

2026-03-04T06:52:50-06:00

The U.S. labor market added jobs at a faster pace than expected in August, but the unemployment rate jumped. To cool down the economy, the Federal Reserve has imposed 11 rate hikes since March 2022, taking the target range for the federal funds rate up to 5.25% to 5.5% as of August 2023. That took benchmark borrowing costs to the highest level in over 22 years. Those rate hikes have helped to slow inflation, but the pace of hiring is continuing to put upward pressure on wages. While the labor market outlook is uncertain, job growth remains resilient, and the unemployment rate remains low by historical standards. @include('site.elements.media.image', ['fileId' => 16853, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Employers added roughly 187,000 employees to payrolls in August 2023, according to the Bureau of Labor Statistics (BLS). While that marked the third consecutive month of sub-200,000 job gains – the slowest pace since December 2000 – the nation’s recent job additions came in ahead of economists' projections (+170,000 jobs) and above July’s gain of 157,000 jobs. Of note: The job counts for June and July were revised considerably lower. Downward revisions to June 2023 data showed 80,000 fewer jobs were added than previously reported, down to 105,000 positions. The July 2023 growth number was also revised down, decreasing by 30,000 jobs to a total of 157,000 positions. With these revisions, employment gains in June and July combined were 110,000 jobs lower than previously reported. @include('site.elements.media.image', ['fileId' => 16852, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) While recent job gains were about half the monthly average of around 399,000 jobs added in 2022, employers are still hiring about the same number of workers than they did prior to the pandemic. From 2015 to 2019, the U.S. economy added an average of roughly 190,000 jobs each month. On an annual basis, the nation gai...

East Coast Resilience Attributed to Low Supply Pressure

2025-04-21T16:33:28-05:00

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.

Nation’s Best and Worst Unemployment Rates by Market

2025-01-22T03:13:40-06:00

Unemployment across much of the U.S. continues to register at historically low levels, thanks to an improved job market. As of July, the nation’s unemployment rate averaged 3.8%, according to non-seasonally adjusted data from the Bureau of Labor Statistics. That reading was unchanged month-over-month and year-over-year, marking the 17th consecutive month below 4%. Among the nation’s 50 largest markets, Baltimore claimed the lowest unemployment rate in July at 1.7%, followed by Miami at 1.9%. Alternatively, Las Vegas posted the highest unemployment rate in July at 6.1%. The next worst performer was Los Angeles, with unemployment at 5.4%. Unemployment rates in July were higher than a year ago in 30 of the nation’s largest markets, lower in 18 markets and unchanged in two. The most improved unemployment rates over the past year were seen in Baltimore (-170 bps), Cleveland (-140 bps) and Pittsburgh (-130 bps). The weakest performances were in Newark (+120 bps), San Jose (+90 bps), Austin (+80 bps) and Oakland (+80 bps).

Baton Rouge is the Nation’s Worst Apartment Occupancy Performer

2025-01-22T03:13:40-06:00

Located along the eastern bank of the Mississippi River in southeast Louisiana is the nation’s worst apartment occupancy performer. Occupancy in Baton Rouge, the capital of Louisiana and home to Louisiana State University, plunged to 90.8% in July, according to data from RealPage Market Analytics. That was the worst performance among the nation’s largest 150 apartment markets and the worst showing this market has seen since June 2018. In fact, over the last five years, very few markets nationwide saw weaker occupancy rates. The only exceptions were Midland/Odessa in 2020 and 2021, Myrtle Beach in 2020, College Station in 2019 and Champaign-Urbana in 2018. Weak occupancy is nothing new for Baton Rouge, as this market typically registers below the U.S. norm. Except for a brief stint following the flooding in August 2016 that temporarily displaced residents into the multifamily market, apartment occupancy in Baton Rouge has trailed the national average over the course of the past decade. Just since January 2022, occupancy in Baton Rouge has fallen 600 basis points, the deepest contraction nationally during that period. With historically weak occupancy, it’s no surprise that apartment development remains modest in Baton Rouge. Inventory has only expanded roughly 1% annually over the past decade, taking the existing unit count from around 44,000 units to nearly 50,000 units.

Apartment Rent Growth Slows Most in Class B and C

2026-03-04T06:52:50-06:00

Apartment rent growth has cooled to an annual rate of just 0.8% in July. But that cooling hasn’t been uniform across all product classes. As of July, annual asking rent growth was strongest in Class A units, accounting for a 1.4% price hike in the last 12 months, according to data from RealPage Market Analytics. Still, that marks quite a slowdown from the recent high of 18.6% in February 2022. In Class B units, annual rent growth has slowed to just 0.5% in July after achieving a recent high of 16.4% in March 2022. In Class C product, which is more constrained by affordability and renter incomes, annual rent change has trickled to a 0.7% hike year-over-year in July, after a more subdued recent high of 9.9% in June 2022. @include('site.elements.media.image', ['fileId' => 16745, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) And as those recent highs from the back half of 2022 continue to fall out of the annual data set, expect rents to continue to cool across the price spectrum. Some markets mirror this national narrative exactly. That is, Class A rent change is strongest, followed by weaker readings in Class B and C units. In Greensboro, for example, rent change across product class looks pretty familiar. Class A rent growth (2.5% year-over-year) was boosting overall performance as of July, while rent cuts in the Class B space (-0.7%) and nearly stagnant growth (0.2%) in Class C units is weighing down market readings. Similar storylines can be seen in Jacksonville, Las Vegas, Richmond, Sacramento and Tampa. Over the course of the last three-plus years since the pandemic began, U.S. conventional market-rate apartment rents have climbed about 27%. That rate, however, is lowest when looking exclusively at Class A rents. Since the pandemic began, rents have climbed more modestly – on a relative basis – in Class A units, accounting for a 21.4% price hike. @include('site.elements.media.image', ['fileId' => 16744, 'attributes' => ['border'...

U.S. Home Prices Rise for Fifth Consecutive Month

2025-01-22T03:13:40-06:00

U.S. home prices rose for a fifth consecutive month in June amid a limited supply of for-sale listings and higher mortgage interest rates. Home prices were up 0.9% from May to June, according to the seasonally unadjusted S&P CoreLogic Case-Shiller U.S. National Home Price Index, which measures average home prices across the nation. While that was the fifth month in a row that prices have increased, the annual rate of change has weakened over the past 14 months since reaching a historic peak of 20.8% in April 2022. Home prices were unchanged year-over-year in June 2023, which is better than the 0.4% annual dip in June 2023. Looking at more granular results, the S&P CoreLogic Case-Shiller 20-City Composite Index, which tracks prices in the 20 largest metros, posted a 0.9% month-over-month gain, while prices were down 1.2% on a year-over-year basis. In June, all 20 cities in the index reported month-over-month price increases for the fourth consecutive month. The largest monthly increase was in Cleveland (1.5%), followed by Chicago and Miami (both at 1.4%). On an annual basis, 10 of the 20 metro areas recorded lower prices, with the deepest pull backs in West region markets, led by San Francisco (-9.7%), Seattle (-8.8%), Las Vegas (-8.2%) and Phoenix (-7.5%). The nation’s biggest annual price hikes were in Chicago (4.2%), Cleveland (4.1%) and New York (3.4%).

Apartment Supply Impacting Rent Growth in Southeast Submarkets

2025-01-22T03:13:40-06:00

While new apartment supply may not be the only governing factor influencing rent growth across the Southeast submarkets in recent months, it’s clear supply pressure – or lack thereof – does have some impact. Central Nashville is the fastest growing submarket across the Southeast, with the inventory base growing by 15.1% in the year-ending 2nd quarter 2023. This is also one of the Southeast submarkets seeing some of the deepest cuts in effective asking rents, with a decline of 1.3% year-over-year. Other submarkets logging rent cuts amid extreme supply pressure include the Far North Atlanta Suburbs and West Huntsville/Madison. Meanwhile, some submarkets have seen very little to no increase in the existing apartment stock and are logging very strong rent growth. West Memphis is the Southeast region’s top rent growth performer, with an annual hike of 9.8%. This submarket’s inventory base didn’t change at all during the past year. South Memphis also saw solid rent growth without any supply pressure. For more information on the state of the Southeast apartment market, including forecasts, watch the webcast Market Intelligence: Q3 Southeast Region Update.

Multifamily Permitting Down by Almost One-Third

2026-03-04T06:52:50-06:00

Higher interest rates, a stacked pipeline, and difficulty in securing funding has seen multifamily development slow to more sustainable levels. According to the latest release from the Census Bureau, the seasonally adjusted annual rate (SAAR) for multifamily permitting in July 2023 fell 32.2% from one year ago as the current 464,000 unit permitting rate was 220,000 units fewer than July 2022’s rate. July’s annual rate was almost unchanged from June’s and is the lowest since October 2020. The more volatile multifamily starts rate almost matched that of permitting with July’s SAAR of 460,000 units also equaling that of June’s starts rate. The annual rate of multifamily starts was also about the same as one year ago. @include('site.elements.media.image', ['fileId' => 16686, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Meanwhile, single-family permitting and starts are edging back up after bottoming at the beginning of the year. At 930,000 units, the SAAR for single-family permitting increased slightly (0.6%) from June and was just 1.3% greater than last year but was 24.3% higher than in January. Similarly, single-family starts were at an annual rate of 983,000 units in July, up 6.7% from June and 9.5% from last July. The starts rate improved almost 20% from its low point earlier in the year. The decline in multifamily permitting brought the SAAR of total residential permitting down 13% from last year to 1.442 million units, while the rate of total residential starts increased 5.9% from last year to 1.452 million units on the strength of single-family starts. Multifamily completions plunged 38.8% from June to 297,000 units and are down 23.3% from last July’s completion rate. Single-family completions were up 1.3% in July with the annual rate reaching 1.018 million units, up 1.4% for the year. The number of multifamily units authorized but not started decreased only 0.7% for the month to 133,000 units, down 10.7% from one year ago. The...

RealPage Economy Express Episode 9

2025-01-22T03:13:40-06:00

Episode 9: What do peak mortgage rates and low housing inventory mean for the economy? The Producer Price Index, which measures inflation before reaching consumers, rose by 0.8% in the year-ending July. Very high mortgage rates have led many homeowners to reconsider selling, leading to low resale inventory. The National Association of Realtors reports existing home sales were down 2.2% for the month and 16.6% year-over-year as of July. Unemployment claims dropped by 10,000 filings in the week-ending August 19, a positive sign that is causing some economists to revise forecasts upward. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

The Five Largest Apartment Transactions in 2nd Quarter 2023

2026-03-04T06:52:50-06:00

Investments in U.S. apartments leveled off in 2023’s 2nd quarter amid the rising cost of debt and economic uncertainty. Though the asset class remains an attractive commercial real estate investment, sales have fallen below pre-pandemic levels. @include('site.elements.media.image', ['fileId' => 16609, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '450']]) Nearly 1,260 apartment properties changed hands at a value of $28.2 billion during 2nd quarter 2023, according to MSCI Real Capital Analytics. The overall sales volume during the quarter was down 72% year-over-year. This was also well below the 4th quarter 2021 peak, when around 5,300 properties changed hands for more than $165 billion as the result of pent-up demand following the onset of the pandemic. Recent activity was also well below the $42 billion quarterly average during the five years leading up to the pandemic (2015-2019). The average price per unit has continued to fall, registering at $196,672 in 2nd quarter, down 19% year-over-year and the lowest level in two years. By comparison, per unit pricing from 2015 to 2019 averaged $151,000. Meanwhile, cap rates for apartment transactions in 2023’s 2nd quarter were up 70 basis points (bps) year-over-year, averaging 5.3%. That was the highest cap rate in nearly four years. Still, multifamily cap rates during 2nd quarter remained the lowest among major property types. @include('site.elements.media.image', ['fileId' => 16612, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) In the year-ending 2nd quarter 2023, transactions totaled nearly $189 billion with around 7,900 properties trading hands. Looking back over the past few years, sales dipped in calendar 2020 due to the pandemic, when about 7,200 apartment communities were sold for roughly $148 billion. That was well below the volume from 2019, when 9,000 properties traded hands for $195 billion. In 2021, transactions jumped back up again, with over 13,000 properti...

Job Gains Slow Sharply in Major Metros

2026-03-04T06:52:50-06:00

While employment growth is still relatively solid nationally, there are significant signs of slowing, especially at the metro level. According to the latest data release from the Bureau of Labor Statistics, all but one of the top 10 metros ranked by annual job gains in July experienced a decrease from their totals from June. Altogether, the top 10 markets created 198,000 fewer jobs in the 12 months-ending July than the same period through June, a decrease of 17.7%. Additionally, the sum of jobs gained in the top 10 markets in July fell below one million jobs for only the second time since the post-pandemic recovery began. @include('site.elements.media.image', ['fileId' => 16579, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Only seven of last month’s top 10 markets returned to this month’s list with just the first two remaining in place and several other markets changing rankings. New York continues to lead the nation in annual gains but fell below the 200,000 jobs gained level with 188,700 new jobs for the year-ending July. That was down about 16,200 jobs from last month and 243,800 less than last July. Dallas remained the #2 market with an annual gain of 128,000 jobs, about 20,000 jobs fewer than last month and 59,400 less than last July’s annual total. Los Angeles’ annual job gain total was virtually unchanged from June’s at 104,300 jobs (down 105,500 from last July), but weaker gains in other metros moved the City of Angels up two spots into #3 this month. Houston slipped one spot to #4 with 96,800 jobs gained, down almost 80,000 jobs from last year and almost 28,000 fewer than in June. Philadelphia also slipped one spot to #5 with 94,000 jobs gained in the 12-months ending July, which was 50,100 fewer than last year and about 11,000 less than in June. Boston jumped three spots to #6, increasing their annual gain slightly from June to 81,100 jobs but that was still almost 16,000 less than last July. Chicago saw a significant de...

Florida Beach Market Claims Nation’s Worst Occupancy Decline

2025-01-22T03:13:40-06:00

Crestview-Fort Walton Beach-Destin logged the steepest decline in occupancy among the nation’s 150 largest apartment markets in the year-ending July 2023. In July, occupancy in Crestview-Fort Walton Beach-Destin hit 93.9%, down 340 basis points (bps) year-over-year – the deepest annual decline among the top 150 markets, according to data from RealPage Market Analytics. July’s reading also falls about 280 bps below the market’s five-year occupancy average of 96.6%. Softening occupancy has been seen nationwide, though the degree to which that softening has occurred has been more severe in Crestview, which also experienced extreme occupancy highs during the first year or so of the global pandemic. Nationwide, occupancy hit 94.9% in July. Meanwhile, neighboring Pensacola has seen occupancy dip 280 bps year-over-year to stand at 94.5% in July. Occupancy in Mobile/Daphne, AL has maintained relative strength, though still dipped 130 bps in the year-ending July.

Student Housing Pre-Leasing Tops 90% in July

2026-03-04T06:52:50-06:00

With only one month left in the Fall 2023 pre-lease season, the student housing pre-lease rate has cleared the 90% mark. As of July, 90.4% of beds at the core 175 universities tracked by RealPage Market Analytics have been leased for the Fall 2023 school year – marginally below July 2022’s record clip of 91.4%. A typical pre-COVID July reading hovered much lower at under 85%. The month-over-month pace of pre-leasing has slowed in recent months, as is generally the case toward the tail end of the summer when there are both fewer beds available to lease and students on campus to lease them. @include('site.elements.media.image', ['fileId' => 16538, 'attributes' => ['border' => '0']]) Several schools claim 100% full pre-lease occupancy as of July, including Purdue University, University of Delaware, University of Tennessee, Oregon State, Appalachian State, Tarleton State, Florida Gulf Coast and College of Charleston. Several of the top performing schools reside in similar markets: quintessential college towns with strong demographics and a well-performing conventional apartment sector. Across the distance spectrum, properties within a half mile to campus were – as usual – more leased than their father counterparts as of July. Properties within a half mile of campus were 91.2% leased as of July, compared to the lowest reading of 88.1% at properties within a half mile to one mile of campus. Properties more than one mile from campus were 90.2% leased as of July – about on par with the total average. @include('site.elements.media.image', ['fileId' => 16542, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '518']]) Annual effective same-store rent growth ticked down from June to stand at 9.3% in the year-ending July but remains near all-time highs. Student housing rent growth easily outperforms that of conventional apartment rent growth as pricing in the conventional space continued to soften in July and looks poised to turn negative later this year. Tw...

West Coast Occupancy Holding On, But Rent Growth is Soft

2025-04-21T16:44:44-05:00

The West Coast is the only region across the U.S. where apartment occupancy is not falling as quickly as the national norm but, at the same time, is seeing weaker-than average rent growth. In the year-ending 2nd quarter, rents in West region markets were growing at roughly half of the rate seen in the nation overall. And West Coast rent growth is not just underperforming national norms; it’s also behind long-term regional trends. This pricing disappointment is happening despite occupancy in the West Coast falling far less rapidly than in most other regions. The only regional peers that are seeing less pronounced occupancy decline are the Midwest and East Coast. In each of those areas, however, annual rent growth is significantly stronger. Two standout market-level performances in the West Coast are San Diego and San Jose, where rent growth remains ahead of the national norm. In fact, San Diego ranks among the nation’s strongest markets for annual rent growth in 2nd quarter.

Montana Multifamily Markets Worth Attention

2025-01-22T03:13:40-06:00

Montana is one of only three U.S. states that does not claim one of the nation’s Top 150 largest apartment markets based on existing unit count. (The other two are Vermont and Wyoming.) Still, developers and investors have shown recent interest in Montana apartment markets. Montana’s largest existing unit count belongs to Missoula with roughly 9,700 existing apartment units. And another 828 units under construction in Missoula will grow inventory 8.5% in the near term, according to RealPage Market Analytics. And Missoula isn’t the only Montana market with a hefty construction pipeline based on inventory ratio. The nearly 1,300 units underway in Bozeman will grow that market’s total apartment inventory by 16.3%. In Kalispell, 418 units underway will grow that small market by a whopping 11.3%. The nearly 800 units underway in Billings will grow that market by 10.2%. And the 458 units under construction in Great Falls will grow total apartment inventory by 8.6%. Only Helena has a completely empty construction pipeline as no apartment units are currently underway in that small market. Across Montana, apartment occupancy maintains relative resilience, despite the heavy construction pipelines. Moving forward, demographic tailwinds should continue to support strong multifamily demand in Montana. Though near-term performance may face some challenges due to the relatively large number of units delivering, expect Montana to remain a state with growing multifamily focus throughout the 2020s decade.

Jackson Ranks Among Nation’s Top 10 for Rent Growth

2025-01-22T03:13:40-06:00

Apartment rent growth in Jackson, MS remains elevated despite weak occupancy. In fact, Jackson is only one of three markets nationwide where occupancy is below 94% and rent growth is above 5%. The other two are the boom-bust markets of College Station and Midland/Odessa. As of July 2023, Jackson recorded occupancy of 93.1%, down 160 basis points year-over-year, according to data from RealPage Market Analytics. The market’s recent occupancy rate measured below the pre-pandemic average of 94.2% from 2015 to 2019 and well below the record peak of 96.6% in September 2020. Meanwhile, effective asking rents in the year-ending July 2023 were up 6%, ranking #9 among the nation’s core 150 markets. While that rent increase was down from the 10% annual growth recorded a little over a year ago, it was well above the pre-pandemic average of 2.1%. Jackson is the capital city of Mississippi and the most populated metropolitan area in the state with roughly 580,000 residents. The population has been declining in recent years, shrinking 1.3% from 2020 to 2022. The market is defined by a typically slow growing economy, but recent job growth has been healthy, fueled by hiring in the Education/Health Services and Trade/Transportation/Utilities sectors. This small South region market with about 33,000 existing apartment units has seen little new supply over the past decade. During that period, its existing unit base grew just 0.5% annually, or an average of less than 160 units a year.

Half of Texas Submarkets Logging Apartment Rent Cuts

2026-03-04T06:52:50-06:00

An increasingly large volume of Texas apartment operators resorted to rent cuts over the past few months, a trend that resulted in price declines across half the Lone Star State’s submarkets as of July. Out of the 113 submarkets across the largest Texas markets of Austin, Dallas, Fort Worth, San Antonio and Houston, 53 submarkets cut rent in the year-ending July. This trend has gotten worse throughout the past few months and took a significant leap in July. Just 24 of those 113 Texas submarkets were logging rent cuts in the year-ending June. @include('site.elements.media.image', ['fileId' => 16458, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) The deepest submarket-level rent cuts statewide were in Austin, which is currently in correction mode, after operators raised prices significantly in the past few years. Those rent hikes – some of which hovered between 20% and 30% in 2021 and 2022 – were clearly unsustainable and now the market is seeing deep adjustments. In fact, all but one Austin submarket saw rent cuts in the year-ending July. Only San Marcos saw rent growth in the past year, with an mild increase of 1.1%. San Marcos is an area supported significantly by a constant flow of traffic due to the large student population of Texas State University. In the year-ending July, the deepest rent cuts were in Northwest Austin at 7.2%, while Cedar Park wasn’t far behind with a decline of 6.6%. Annual price cuts around the 6% mark were seen in Far West Austin, Southwest Austin and the Arboretum. While apartment demand remains solid in Austin, ranking #4 nationwide in the past year, the popular Texas market has been one of the fastest growing areas nationwide. With record new supply, the market is now delivering more units than it can realistically absorb in the near term. As of July, annual completions were at nearly 13,300 units, increasing the existing base by 4.6%. A stunning 32,000 or so units are slated to complete in the coming yea...

How Far is Each Market Past Peak Apartment Construction?

2026-03-04T06:52:50-06:00

New apartment supply has been one of the hottest apartment market talking points through the first half of 2023. New supply so far in 2023 has already put downward pressure on rent growth. And as our Chief Economist Jay Parsons explains, this is exactly what new supply is supposed to do. This is economics 101: the best way to satiate demand is by increasing supply. Despite record construction volumes persisting, the development pipeline for U.S. market-rate multifamily units shows that things are already beginning to taper off. As of the end of 2nd quarter 2023, there were 1,037,904 market-rate multifamily apartment units under construction. This is down ever so slightly from the prior quarter, which boasted some 1,083,966 units in the pipeline. On one hand, digesting 1M+ units in the coming quarters will be quite the task. Still, the pullback in construction is already showing up in the data. As of 2nd quarter 2023, six of the nation’s 50 largest apartment markets are currently at their peak construction volume. @include('site.elements.media.image', ['fileId' => 16391, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '700']]) Interestingly, only one of those markets is in the South region (Miami), though a cumulative count of the South Florida trio (Miami, Fort Lauderdale and West Palm Beach) shows construction is down from 1st quarter 2023’s peak (from 46,328 units to 44,905 in 2nd quarter 2023). Arguably only Indianapolis (peaking about 800 units or 10% above its 1st quarter 2023 figure) boasts a noteworthy increase in the 2nd quarter figures. Conversely, 15 major U.S. markets are one-plus year removed from their peak construction volume, about half of which are in the West region. San Francisco is nearly eight years beyond its 2015 peak while Anaheim about six and half years beyond its 2016 peak. While timing is one way to view local construction peaks, it’s important to note where construction levels have fallen the most – both in nominal...

Pandemic Darling Boise City Sees Apartment Fundamentals Slump to Decade Lows

2026-03-04T06:52:50-06:00

Once considered the pandemic darling by apartment industry experts, market fundamentals in Boise City have dropped to record lows. This small West region market with roughly 31,500 existing units typically operates at a much healthier pace than the national average. During the COVID-19 pandemic, Boise City saw notable growth at a time when many markets were suffering. However, Boise City is now feeling the inevitable pains of a post-boom period as supply remains elevated amid a softening of demand. As a result, occupancy and rent performance have dropped to the lowest levels since RealPage began tracking the market in 2012. Still, long-term prospects remain bright, as this market retains strong underlying demand drivers. @include('site.elements.media.image', ['fileId' => 16342, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Unlike most other West region markets which have received limited new supply, Boise City consistently gets a decent amount of new product. Over the past 10 years, Boise City’s existing inventory has more than doubled. In the last decade, the market added roughly 11,500 units, growing its apartment base 57.4%, or an average of 5.7% each year, according to data from RealPage Market Analytics. In the year-ending 2nd quarter 2023, the market added roughly 1,600 units, growing existing stock 5.2%, well above the U.S. (2.0%) and West region (1.6%) norms. The only other West region market to top Boise City’s recent annual inventory growth pace was Provo-Orem, UT (7.1%). A lot more units are on the way in Boise City, as 2,696 units are scheduled for completion in the year-ending 2nd quarter 2024. Those additions will expand the market’s existing stock 8.6%, the 11th fastest-growth pace among the nation’s top 150 markets. @include('site.elements.media.image', ['fileId' => 16341, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Demand has generally kept pace with new supply in Boise City, but over th...

Vancouver is the Heavyweight of the Portland Apartment Market

2025-01-22T03:13:40-06:00

The Vancouver submarket is currently leading Portland’s apartment performance. This submarket on the north bank of the Columbia River is Washington’s fourth-largest city. Vancouver absorbed 711 units in 2023’s 2nd quarter – the best showing in the market – and was also the market’s supply leader with 794 units delivered in the April to June quarter, according to data from RealPage Market Analytics. On an annual basis, Vancouver went against the grain for demand. While most Portland submarkets logged net move-outs in the year-ending 2nd quarter, Vancouver absorbed 903 units, and was once again the supply leader with 1,482 units delivered in the past year. This submarket has ranked among Portland’s top apartment supply and demand centers regularly for the past five years or so. Vancouver saw one of metro Portland’s best occupancy rates in 2nd quarter at 95.8%. Only the Southwest Portland/Tigard neighborhood logged a better showing at 96.1%. Both submarkets were also top of the market for annual effective asking rent growth, both achieving an increase of 3.9%. Apartment construction activity in the Portland market is also focused on the Vancouver submarket, proving this area is going to continue to be a stronghold in the near term.

RealPage Economy Express Episode 8

2025-01-22T03:13:40-06:00

Episode 8: Is the economy out of the woods yet? Pending home sales grew just 0.3% in June, marking the first growth in four months, according to the National Association of Realtors. GDP surged 2.4$ in 2nd quarter, fueled by a 1.6% bump in consumer spending. U.S. employers added nearly 190,000 jobs to payrolls in July, according to the Bureau of Labor Statistics. CPI rose 0.2% in July, marking a 3.2% increase year-over-year. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

U.S. Inflation Ticks Up for First Time in a Year

2025-01-22T03:13:40-06:00

After 12 straight months of declines, the cost of goods and services for U.S. consumers rose in July. The Consumer Price Index (CPI) for All Urban Consumers, a measure of price changes commonly referred to as the inflation rate, registered at 3.2% in the year-ending July 2023, according to the Bureau of Labor Statistics. That measure was up from the 3% annual increase in June – which was the lowest level since March 2021 – and in line with economists’ expectations of 3.3%. Still, inflation has cooled considerably since reaching a 40-year high of 9.1% in June 2022. However, inflation remains well above the Fed’s target rate of 2% annually. Excluding volatile food and energy prices, the core CPI increased 4.7% during the year-ending July, down slightly from the 4.8% annual increase in June and the lowest level since October 2021. Looking at other indexes, shelter, which has a well-documented lag effect and accounts for about one-third of the total CPI index, saw a 7.7% year-over-year price surge in July, still registering as one of the biggest annual gains in the past 40 years. Meanwhile, the cost of food was up 4.9% over the past year. And new vehicles posted an annual price increase of 3.5%. The cost of energy dropped 12.5% year-over-year in July, with the cost of gasoline (-19.9%) having a deep impact on that decline. The price of used cars and trucks (-5.6%) was also down on an annual basis. Airline fares, which saw huge price jumps in 2022 through early 2023, fell 18.6% in the year-ending July.

Excluding Lagged Shelter Data, Inflation Has Nearly Disappeared

2026-03-04T06:52:50-06:00

It may seem hard to believe, but inflation is basically gone when you exclude the lagged shelter (i.e. rent) data in the Consumer Price Index. Remember: Rent is the biggest variable in the CPI's biggest category (shelter), and there's a known 12-month lag between asking rents and CPI rents. And because of that known lag, we already know where this story is going. Fresh CPI data came out this morning, and it was right in line with expectations. But there’s surprisingly little buzz (outside of economists and Fed watchers) about inflation less shelter measuring just 1.0% year-over-year through July. That is the lowest number since November 2020, and it's less than half the 20-year average. @include('site.elements.media.image', ['fileId' => 16325, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Meanwhile, CPI rent inflation continues to slowly cool as expected – following its predestined down ramp based on asking rents that have been moderating since spring 2022. CPI rent inflation measured 0.41% month-over-month – the lowest since December 2021. Year-over-year, CPI rents were up 8.0%, marking four consecutive months of cooling after a 20-month ascension. @include('site.elements.media.image', ['fileId' => 16326, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) And asking rent growth continues to cool even faster – down to 0.78% as of July, according to RealPage Market Analytics, which has tracked (in line with academic studies) showing asking rents lead CPI rents by about 12 months. That means CPI rents will almost certainly continue to cool through 2023 and into early 2024. @include('site.elements.media.image', ['fileId' => 16328, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) On a monthly basis, CPI rent inflation peaked between May 2022 to February 2023, so that suggests year-over-year CPI rents should look normal-ish by late winter or early spring 2024. Here's another trend not ge...

Markets with Most Build-to-Rent Units Under Construction

2026-03-04T06:52:50-06:00

Investor and renter interest in build-to-rent properties exploded during the pandemic and that interest continues to grow. As climbing interest rates and high home prices keep some would-be homebuyers in the renter pool, developers and investors are offering up some attractive alternatives in single-family homes built specifically for renters. If the pipeline is any indication, demand for build-to-rent remains robust. Based on data from RealPage Market Analytics, the number of units completed increased about 52% between 2021 and 2022. As of June 2023, there were over 700 planned and under construction build-to-rent properties across the U.S., accounting for about 86,543 units. Through 2026, about 116,000 units are projected to be delivered, though that number will likely change with construction delays and additional properties added to pipelines. That is an extensive pipeline when considering this product type was virtually nonexistent just a couple years ago. Those numbers don’t include projects with units still under construction that already have residents living on the property. So, what classifies as build-to-rent? RealPage defines single-family build-to-rent (BTR) housing as fully detached, semi-detached (semi-attached, side-by-side), row houses, duplexes, quadruplexes and townhouses built for rental. Attached/semi-attached homes must be separated by a ground-to-roof wall, have separate heating and cooling systems, individual meters for public utilities and, finally, no units located above or below. This property type is also sometimes referred to as built-for-rent, built-to-rent or single-family rentals. @include('site.elements.media.image', ['fileId' => 15884, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) As of June 2023, Phoenix, Dallas and Atlanta rank as the top three markets for BTR properties under construction – and by a wide margin. The combined 25,000 units under construction in these three markets accounts for over a...

Omaha Apartment Completions Reach Highest Level in Decades

2025-01-22T03:13:40-06:00

The Omaha-Council Bluffs apartment market is continuing to expand at an accelerated pace, at least by local standards. This Midwest market grew 2.4% with the addition of 2,469 units in the year-ending 2nd quarter 2023, according to data from RealPage Market Analytics. That took Omaha’s existing inventory to nearly 88,000 apartment units. While that doesn’t place Omaha among the nation’s top 50 apartment markets based on existing units, it sure comes close, ranking #55. Completions in Omaha over the past year were at the highest level since at least 2006. For comparison, during the 2010s-decade, Omaha averaged deliveries of less than 1,200 units annually. Elevated deliveries in Omaha haven’t had much of an impact on occupancy and rent growth. In 2023’s 2nd quarter, occupancy in the market registered at 96.7%, down just 90 basis points from the peak of 97.6% achieved a year earlier and well above the market average of 95.3% during the five years leading up to the pandemic (2015-2019). With tight occupancy, apartment operators in Omaha have been able to push rents well above the market norm. In the year-ending 2nd quarter 2023, effective asking rents were up 6.8%. While that was down from the high of 8.3% achieved a year ago, it was well above the average of 2.4% from 2015 to 2019 and ranked 11th among the nation’s core 150 markets.

U.S. Hiring Remains Solid in July Amid Higher Interest Rates

2026-03-04T06:52:50-06:00

The U.S. labor market remained resilient in July despite efforts by the Federal Reserve to dampen inflation. The Fed has imposed 11 rate hikes since March 2022, taking the target range for the federal funds rate up to 5.25% to 5.5% as of late July 2023. That takes benchmark borrowing costs to the highest level in over 22 years. Still, the pace of hiring is continuing to put upward pressure on wages and inflation. While the labor market outlook is uncertain, job growth remains in line with pre-pandemic levels, and unemployment remains among historically low rates. @include('site.elements.media.image', ['fileId' => 16220, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Employers added roughly 187,000 employees to payrolls in July 2023, according to the Bureau of Labor Statistics (BLS). That marked the second consecutive month of sub-200,000 job gains since December 2000. In addition, the nation’s recent job additions came in short of economist’s projections (+200,000 jobs) but in line with June’s gain of 185,000 jobs. Of note: Downward revisions to May 2023 data showed 25,000 fewer jobs were added than previously reported, down to 281,000 positions. The June 2023 growth number was also revised down, decreasing by 24,000 jobs to a total of 185,000 positions. With these revisions, employment gains in May and June combined were 49,000 jobs lower than previously reported. @include('site.elements.media.image', ['fileId' => 16219, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) While recent job gains were about half the monthly average of around 399,000 jobs added in 2022, employers are still hiring about the same number of workers than they did prior to the pandemic. From 2015 to 2019, the U.S. economy added an average of roughly 190,000 jobs each month. On an annual basis, the nation gained nearly 3.4 million jobs in July 2023. Although that was the weakest annual gain since March 2021, it was well above the a...

Demand Outpaced Supply in These Markets in 2Q23

2023-08-18T02:00:06-05:00

Among the nation’s largest 50 apartment markets, only 14 saw apartment demand outpace supply in 2023’s 2nd quarter. The U.S. overall absorbed over 83,400 units in the April to June time frame, according to data from RealPage Market Analytics, but that pace was not enough to keep up with significant new completion volumes of over 107,400 units. Most apartment markets in the top 50 followed that trend, garnering at least some demand in 2nd quarter, but not enough to keep up with elevated supply volumes. Among those that bucked this trend, seeing absorption outpace supply, Chicago was the clear leader nationwide. This Midwest market saw demand for over 4,000 units topping completions by nearly 1,600 units. Markets with demand exceeding supply by about 500 units include Virginia Beach, San Diego and Milwaukee. In some of the markets on this list, 2nd quarter demand volumes were significant, accounting for big chunks of annual absorption.

As Annual Rent Growth Slips Below 1%, How Much Further Could Rents Cool?

2026-03-04T06:52:50-06:00

As anticipated, asking rent growth continued to trend downward in the year-ending July – dropping below 1% for only the second time since the Great Financial Crisis and setting up a potential drop into negative territory sometime in the next couple months. But, at the same time, there are some signs that the slope of cooling may soon level off. Why the rapid cooling? Unlike in past cycles, it’s not a demand issue. We continue to see strong job growth and low unemployment. We continue to see apartment demand bounding back nicely after a weak 2022. But we're also seeing a multi-decade high in new supply. So supply is doing what it's supposed to do – putting downward pressure on pricing. Here are a few observations from the July data: 1. Year-over-year rent growth is now at 0.78% As of July, same-store effective rents were up just 0.78% year-over-year, according to data from RealPage Market Analytics. Outside of the 2020 pandemic period, that marked the lowest figure since July 2010. At the same time last year (July 2022), rent growth measured 12.25%. @include('site.elements.media.image', ['fileId' => 16184, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) 2. Rent growth is mostly limited to the Midwest and Northeast Year-over-year rent growth tops 2% in only 15 of the nation's 50 largest markets. Of those 15, all but three are located in the Midwest or Northeast regions. The three exceptions: Virginia Beach, San Diego and Miami. But even those are cooling fast – especially Miami. Northern New Jersey (Newark) led all major markets with 5.6% year-over-year growth in July. After that, Midwest markets – always the steady eddies – took the next six spots: Cincinnati (5.5%), Indianapolis (4.0%), Chicago (3.8%), St. Louis (3.5%), Milwaukee (3.4%) and Kansas City (3.4%). Not coincidentally, supply is much less a factor in Midwest and Northeast. Virginia Beach, Boston and New York rounded out the top 10 – all just above 3%. The only other majo...

Ranking U.S. Job Growth by Geographic Region

2025-04-21T15:39:59-05:00

RealPage Market Analytics has explored performances variations across the regions in a series of blog posts covering apartment demand by region, occupancy by region, supply by region and rent growth by region. The last piece we’ll examine is arguably the most important, as all the other aspects of the market are driven by this one: job growth. U.S. employers added nearly 3.1 million jobs in the year-ending June, increasing the existing employment base by 2.8%. That is roughly double the annual job growth the nation was clocking in the five years leading up to the COVID-19 pandemic, when the average annual gain was 1.6 million jobs, increasing by an annual pace of 1.7%. The economic crisis of 2020 resulted in the deepest job decline the nation had ever seen, with cuts bottoming out at 14 million jobs lost in the year-ending April 2020. Job cuts were universal across the regions, but nowhere more damaging than in the Northeast, home to some of the largest, most dense, most expensive markets. The South region, home to the more affordable Sun Belt markets, also saw a decline, but the setback there was comparatively moderate. In 2021, the economy surged as the COVID-19 vaccine became widely available, and the country went back to work. Unprecedented job growth swept the nation, and again the Northeast led the charge for the workforce recovery. More recently, job growth has settled into a steadier rhythm. All the jobs lost during the pandemic have been regained – and then some – and job growth continues at a pace notably elevated above pre-pandemic norms. The South While the South falls short on rent growth in comparison to its regional peers, this part of the country is winning in every other fundamental, including job growth. As the country started closing down during the COVID-19 pandemic, the Sun Belt benefitted early from a population influx. Workers who enjoyed the benefit of higher wages in gateway cities were suddenly given the opportunity...

YTD Apartment Demand Strongest in Sun Belt and Mountains Region

2025-01-22T03:13:40-06:00

The Sun Belt and Mountains apartment markets claimed the lion’s share of apartment demand year-to-date across the U.S., despite a lingering doomsday narrative, according to data from RealPage Market Analytics. Yes, there’s still a supply and demand gap, but it isn’t as severe as some of the perma-oversupply forecasts suggest. As we've said many times, demand is unlikely to keep pace with supply through 2024, but that doesn't mean demand will be weak. It's improved in 2023 and should remain solid. Nor is the supply/demand gap limited to the Sun Belt (despite the conventional narrative). Asking rents (not in-place rents) have gone negative in a growing number of markets, but it's not just the Sun Belt. It's happening in nearly all major West Coast markets, too. The short-term imbalance will provide a further headwind to slow down new starts, allowing demand to eventually catch up around 2025 ... and then we'll be hearing about so-called undersupply again. Also, look at the strength of the Midwest. This is the one region (even more than most of the Northeast) seeing solid rent growth and solid demand – suggesting that rent growth here may be somewhat more sustainable over the next 18 months. The next 18 months will be bumpy for much of the nation's apartment markets – including the Sun Belt. There's a lot of supply, and it's more than we'll likely absorb in the short term. Plus, there are other challenges, such as high financing costs. I don't want to gloss over that. There are real headwinds for sure, but most are short term. But if you have a longer-term view: Follow the demand.

RealPage Economy Express Episode 7

2025-01-22T03:13:39-06:00

Episode 7: Can we mention the R word? Consumer sentiment surged by almost 13% in July. The labor market remains resilient, with unemployment claims dropping to 228,000 in July. As of June, core retail sales – excluding automobiles – saw the smallest annual increase in three years. Sales for existing homes declined nearly 19% year-over-year as of June. The Conference Board's Leading Economic Index marked 15 months of decline, meaning 3rd quarter could be the start of a recession. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

RealPage Economy Express Episode 6

2025-01-22T03:13:39-06:00

Episode 6: Have we started to see a light at the end of the tunnel? • Pending home sales dropped 2.7% in May – to the lowest level in six months.• Consumer sentiment saw a significant surge in June. • The PCE index rose 3.8% in May, but the core index didn't change much.• Real wages were up 1.2% in June, providing employees relief.• U.S. added 209,000 jobs in June. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

RealPage Economy Express Episode 5

2025-01-22T03:13:39-06:00

Episode 5: Prospective rebound in the housing sector? Inflation remains stubbornly high, due to a strong labor market. Fed might return to interest rates hikes, but at a milder pace. Privately owned housing starts surged by nearly 22% in May, marking the highest monthly increase since 1990. Roughly 760,000 new homes sold in May. Consumers are gaining confidence in the housing sector. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

RealPage Economy Express Episode 4

2025-01-22T03:13:39-06:00

Episode 4: Is the Fed done raising interest rates? • Spending on new multifamily construction surged almost 25% in April. • In contrast, new single-family construction spending declined by 24.7% in April. • The U.S. added 339,000 jobs in May.• In light of new data, some metro-level employment forecasts have been revised. • Fed announces a pause on new interest rate hikes. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

RealPage Economy Express Episode 3

2025-01-22T03:13:39-06:00

Episode 3: Debt default averted, what's next? A downward trend in building permits suggests an impending deceleration in construction activity. Existing home sales dipped by 3.4% in April. Home prices were up in Florida markets but declined in West coast metros. 1st quarter GDP was revised upward. Consumer Confidence Index dropped again in May. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

RealPage Economy Express Episode 2

2025-01-22T03:13:39-06:00

Episode 2: To default or not to default? The U.S. economy added 253,000 jobs in April, bringing total gains this year to about 1.1 million. • Average hourly earnings only grew by 0.5% in April.• The Consumer Price Index rose by 40 basis points in April.• Retail sales only increased by 0.4% in April, falling short of expectations. • Consumer sentiment index dropped by 9%, indicating a lack of confidence among consumers. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

RealPage Economy Express Episode 1

2025-01-22T03:13:39-06:00

RealPage Deputy Chief Economist and Director of Forecasting Arben Skivjani makes the vast and complicated world of the U.S. economy more accessible and understandable in our RealPage Economy Express series. In these short, bi-weekly videos, RealPage breaks down the most important economic indicators to cover everything from GDP and employment to the Consumer Price Index and consumer sentiment. Catch these bite-sized videos to better understand how various elements of the economy impact the multifamily world and our RealPage forecast – and all in episodes under five minutes. Whether you’re a real estate investor, developer, analyst or simply interested in the multifamily industry, RealPage Economy Express is the video series for you. Episode 1: What do current economic reports say? Only 4.4 million existing U.S. homes sold in March, as mortgage rates continue to increase.• Consumers don’t have much confidence in the U.S. economy right now.• Real GDP grew by 1.1% in 1st quarter.• A mild recession could be coming later in the year. For more information on the state of the U.S. Economy, including forecasts, watch all the episodes of the Economy Express series.

Occupancy and Rent Growth Haven’t Been This Low in Tucson Since 2015

2025-04-21T15:53:49-05:00

Apartment rent growth and occupancy are at eight-year lows in Tucson. Though only about a fifth of the size and some 110 miles away, apartment fundamentals in the small market of Tucson have approximately tracked that of Phoenix in recent years. And as Phoenix fundamentals cooled considerably in 2022, so too did Tucson’s performance – after surging in 2021. Halfway through 2023, Tucson occupancy (92.7%) hit its lowest level since December 2015, according to June data from RealPage Market Analytics. Annual effective asking rent growth in Tucson improved marginally in June (0.8%) from it’s weak May reading (0.5%), but collectively these two soft showings make up the lowest rent growth in Tucson since February 2015. In Phoenix, meanwhile, occupancy is at a nine-year low (92.8% as of June 2023) and annual rent change (-4.7% as of June 2023) is at a 13-year low.

Multifamily Development is Definitely Slowing

2026-03-04T06:52:50-06:00

The seasonally adjusted annual rates for both multifamily permitting and starts declined month-over-month and year-over-year as of June. According to the latest release from the U.S. Census Bureau, June’s multifamily permitting rate slowed 13.5% from May to 467,000 units, down 33.1% from last June. As we suspected, multifamily starts were much lower than initially reported last month. The rate for starts in May was revised down from 624,000 units to 545,000 units, a downward revision of -14.5%. June’s pace for multifamily starts of 482,000 units was still 11.6% below May’s revised rate and 11.3% below last June. We discussed the sampling and survey issues for starts last month. @include('site.elements.media.image', ['fileId' => 15997, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Another indication that the annual rate for multifamily starts may be overestimated is the disappearance of the typical gap between permits and starts in the past few months. Historically, there are usually about 56,000 more units permitted than started when comparing the rates each month. From January 2018 to October 2022, the difference was about 85,000 units but that fell to an average of 28,000 units since. Granted, there is often a time lag between permits and starts for multifamily and this could mean that permitting is slowing faster than starts. Single-family starts were at 935,000 units in June, down 7% from May and down 7.4% from last year. Combined total residential starts fell about 8% for the month and year to 1.434 million units. Single-family permitting reached an annual rate of 922,000 units in June, up a modest 2.2% from May and only 2.7% below last year’s pace. Total residential permitting dipped 3.7% in May to 1.44 million units but were down 15.3% for the year. Multifamily completions dipped 2.5% from May to 476,000 units but are up 26.3% from last June’s completion rate. Single-family completions were down 2.8% in June with the annual ra...

San Diego Rent Growth Tops Regional Peers

2025-01-22T03:13:39-06:00

While effective asking rent growth in San Diego has come down from recent highs, the performance here is still double the price increases in the rest of the region. Effective asking rents in San Diego were up 5.1% in the year-ending 2nd quarter, according to RealPage Market Analytics. Among the nation’s largest 50 apartment markets, San Diego ranked in the top five for annual rent growth, bested by only Newark, Cincinnati, Indianapolis and Miami. San Diego price hikes are nearly double the second-best performance in the West region – San Jose at 2.8% – and the national norm – 2.4%. The price gap is even bigger when holding San Diego up to the market’s regional peers: Los Angeles (1.7%), Anaheim (1.2%) and Riverside (0.9%). Helping support rent growth in San Diego, occupancy rates here continue to increase, in contrast to what is happening across much of the nation. Boosting occupancy in San Diego, apartment construction activity continues at manageable levels, allowing the market to absorb units at a healthy pace as they come online.

Stellar 2Q Apartment Demand in Key Markets

2026-03-04T06:52:50-06:00

While 2nd quarter apartment demand in the U.S. overall was not enough to make up for the deep net move-outs suffered in 2022, some individual markets saw a different story. The U.S. apartment market logged demand for 83,450 apartment units in 2023’s 2nd quarter. Still, annual absorption remained in negative territory at -44,096 units but due to the deep declines seen at the end of 2022, according to data from RealPage Market Analytics. However, in roughly half the nation’s largest 50 apartment markets, 2nd quarter demand was significant. While these markets indeed suffered the decline of 2022, the apartment demand rebound in 2023’s 2nd quarter was enough to wipe the red from their ledgers and pull them into positive annual demand. In fact, among those markets, nine logged a 2nd quarter performance that accounted for over 100% of the market’s annual demand tally. @include('site.elements.media.image', ['fileId' => 15927, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) In Columbus, 2nd quarter apartment absorption made up over 3,000% of the market’s annual apartment demand volume. Over 1,400 units were absorbed here in 2nd quarter, the market’s largest quarterly demand volume since 2nd quarter 2019. This made up for the decline seen in the back half of 2022 and left annual demand at 42 units. Columbus is a slow-and-steady apartment market that tends to perform on a relatively even keel. This market fared the COVID-19 pandemic relatively well and even now continues to post strong rent growth in a time when other markets are pulling back in that metric. Two other Midwest markets – Kansas City and Minneapolis – also made the list. Solid 2nd quarter demand in Kansas City accounted for 322% of annual absorption, while that figure in Minneapolis was 160%. Kansas City is also performing among the nation’s best for annual rent growth, with a price increase of 5% in the year-ending 2nd quarter, which is double the U.S. average. In Minneapolis, t...

Rents and Occupancy Falling Fast in the Mountains/Desert Region

2025-01-22T03:13:39-06:00

Apartment markets in the Mountains/Desert Region of the U.S. tend to operate in a boom/bust profile, seeing significant growth in good times, and significant declines in bad times. As of 2nd quarter, this region is logging the nation’s deepest performance decline. In the U.S. overall, annual occupancy decline of 210 basis points (bps) and annual rent growth of 2.4% leaves the national performance lackluster. In the Mountains/Desert region, occupancy decline was similar at 240 bps, but that downturn was coupled with rent cuts, which came down by 0.7% year-over-year. While all regions of the country suffered occupancy retrench in the past year, the Mountains/Desert region was the only locale to see rent declines as well. In Texas and the Carolinas, the annual occupancy adjustment was significant, but rent growth in those areas held up the overall performance. On the other hand, the slow-and-steady Midwest as well as the East Coast markets are seeing rent growth accelerate much faster than other regions across the U.S. For more information on the state of the Mountains/Desert region apartment market, including forecasts, watch the webcast Market Intelligence: Q3 Mountains/Desert Region Update.

U.S. Economy Outperforms Expectations in 2nd Quarter

2025-01-22T03:13:39-06:00

The U.S. economy gained momentum from April through June, growing faster than expected as consumers continued spending despite rising interest rates. According to the advance estimate for real gross domestic product (GDP) recently released by the Bureau of Economic Analysis, real GDP grew at an annualized rate of 2.4% in 2nd quarter 2023. That was higher than the growth rate in the first three months of the year which was revised up to 2%. The recent economic expansion also exceeded economists’ expectations of 1.8% growth. The increase in real GDP during 2nd quarter primarily reflected increases in consumer spending (in both goods and services), nonresidential fixed investment, government spending and private inventory investment. Those increases were partly offset by decreases in exports and residential fixed investment. The recent GDP estimate will be revised several more times based on more complete source data. The second estimate for 2nd quarter 2023 GDP will be released on August 30.

Markets with Increased Investment Dollar Volume

2025-01-22T03:13:39-06:00

Over the last few years, smaller markets have garnered significantly more attention due to the emergence of hybrid work policies and evolving lifestyle demands, which provide people with increased options to choose how they prefer to live, work and play. Apartment inventory growth has been exploding in small markets nationwide, so it follows that investment volume has been increasing in these areas as well. Looking at investment dollar volume change more closely over the past year, however, we see that smaller markets are basically the only markets out of the 150 tracked by RealPage that registered investment growth over the past year. Of the 19 markets that achieved an investment dollar volume increase year-over-year, all but three were small markets. Midland/Odessa blew past every other market on the list to rank #1 for annual change – an astounding 2,672% increase year-over-year with nearly $125 million worth of apartment transactions. Located in the heart of one of the world’s most active energy regions, Midland/Odessa is characterized by a boom-and-bust economy dominated by oil and gas production. Salisbury, MD – just a little over 100 miles away from both Washington, DC and Baltimore – claims the #2 spot with a 609% increase year-over-year. A whopping $58.5 million of apartment deals transacted over the past year in Salisbury, a tremendous feat for a city with a population of just under 415,000 people. The next tier of markets saw investment dollar volume increase closer to the (still incredible) 100-200% range: Spokane, Madison, Buffalo, Shreveport, San Jose and Eugene, with San Jose appearing as the first of only three large markets that made the top 20. While some of these smaller markets are located within a relatively commutable distance from a larger metro, these cities are certainly sizable enough to offer their own unique appeal and urban amenities. The wide range of geographic, economic, and cultural diversity among these marke...

U.S. Metros Continue Gaining Jobs

2026-03-04T06:52:50-06:00

Despite a slowing in the seasonally adjusted monthly U.S. job gain figures, metro-level data continued to show solid gains, at least for not seasonally adjusted data. According to the latest data release from the Bureau of Labor Statistics, nine of the top 10 markets for annual job creation had higher job gain totals in June than in May. Altogether, the top 10 markets created 106,500 more jobs in the 12 months ending in June than the same period through May, an increase of 10.6%. This is on top of the fact that the majority of top 10 markets had their annual job gain figures for May revised upward slightly. @include('site.elements.media.image', ['fileId' => 15917, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Nine of last month’s top 10 markets returned to this month’s list with the first three remaining in place and a few other markets changing rankings. New York continues to lead the nation in annual gains with 221,500 new jobs for the year-ending June, up about 10,400 jobs from last month but 250,300 less than last June. Dallas remained the #2 market with an annual gain of 149,600 jobs, just 35,800 jobs fewer than last year but 25,400 more than May’s annual total. Houston returned in the #3 spot, gaining 121,600 jobs for the year, down 55,600 from last June but about even with last month. Philadelphia moved into the #4 spot with an annual gain of 108,500 jobs for the year, 43,400 less than last year but 15,800 more than May’s annual total. Los Angeles slipped one spot to #5, adding 106,200 jobs but slowed by almost 143,000 jobs from last year, despite adding 9,700 jobs to their annual gain from May. Chicago remained in the #6 spot with 89,200 jobs gained, up more than 9,000 jobs from May (like LA) but down 83,000 jobs from last June. Atlanta moved up one spot to #7, adding 87,900 jobs through June, almost 67,000 fewer than last year but 15,300 more than in May. Washington, DC jumped two spots to #8 with a gain of 85,200 jobs for...

U.S. Home Prices Increase for Fourth Consecutive Month

2025-01-22T03:13:39-06:00

U.S. home prices rose for a fourth consecutive month in May due to a limited supply of for-sale listings. However, on an annual basis, home prices posted a second consecutive decline, as higher mortgage rates made home purchases more expensive for buyers. Home prices were up 1.2% from April to May, according to the S&P CoreLogic Case-Shiller U.S. National Home Price Index, which measures average home prices across the nation. While that was the fourth month in a row that prices have increased, the annual rate of change has weakened over the past 14 months since reaching a historic peak of 20.8% in March 2022. Home prices were down 0.5% year-over-year in May 2023, which was a slight decline from the 0.1% annual dip in April 2023 and the second consecutive annual decline since April 2012. Looking at more granular results, the S&P CoreLogic Case-Shiller 20-City Composite Index, which tracks prices in the 20 largest metros, posted a 1.5% month-over-month gain, while the annual change remained steady bettween April and May with a 1.7% year-over-year downturn. In May, all 20 cities in the index reported month-over-month price increases. The largest monthly increase was in Cleveland (2.7%), followed by Chicago and Detroit (both at 2.3%). On an annual basis, 10 of the 20 metro areas recorded lower prices, with the deepest pull backs in West region markets, led by Seattle (-11.3%) and San Francisco (-11%). The nation’s biggest annual price hikes were in Chicago (4.6%), Cleveland (3.9%) and New York (3.5%).

Fort Worth: Sleeping Giant of D/FW Apartment Demand

2026-03-04T06:52:50-06:00

In a reversal of the typical pattern, apartment demand in Fort Worth accounted for nearly half of the Dallas/Fort Worth total in 2nd quarter 2023 – despite apartment inventory there being about one third that of Dallas. Fort Worth accounted for 46% of the D/FW total absorption in 2nd quarter 2023. That was the market’s highest quarterly ratio on record, except for last quarter. In 1st quarter 2023, Fort Worth absorbed a mere 314 units, while Dallas recorded net move-outs from 251 units, according to data from RealPage Market Analytics. In the April to June quarter, Fort Worth absorbed 2,560 units, easily outpacing the 2nd quarter average from 2010 to 2019 (the decade pre-COVID) of about 1,700 units. That rate approximately matched Dallas’s 2nd quarter 2023 absorption of 3,000 units. In the decade preceding the global pandemic, apartment demand in Fort Worth accounted for just 12% of the D/FW total on a quarterly basis and 18% on an annual basis. All told, Fort Worth demand amounts to less than one-fifth of the metroplex’s total, in any given year. That’s not surprising given that the Fort Worth market of about 230,000 apartment units is about a third of the size of Dallas’s 670,000 existing units. That context makes 2nd quarter 2023’s figures all the more interesting. @include('site.elements.media.image', ['fileId' => 15829, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) In the apartment demand boom of 2022, Fort Worth creeped up to account for a larger percentage of D/FW demand. In the four quarters of calendar 2022, Fort Worth consistently accounted for about 24% of D/FW demand, which was not only a higher rate than average, but a more consistent rate as well. Considerable swings in quarterly apartment absorption are common, and that’s the case with the Dallas/Fort Worth break out ratios as well. Fort Worth’s strong 2nd quarter showing allowed the market to regain demand on an annual basis as well. In the year-ending 2nd quarter 20...

Apartment Occupancy in Salt Lake City Hits a 13-Year Low

2025-01-22T03:13:39-06:00

The Salt Lake City/Ogden/Clearfield apartment market has historically been an outperforming market, but fundamentals have faltered in recent months due to mounting supply volumes. Over the past year, occupancy dropped 240 basis points (bps), taking the rate to 94% as of June 2023, according to RealPage Market Analytics. That was the lowest occupancy rate the market has witnessed since June 2010 and registered 70 bps below the national average. For comparison, Salt Lake City’s average occupancy over the past 10 years clocked in at 96%, well above the U.S. average of 95.4% during the same period. As a result of weakened occupancy, apartment operators in Salt Lake City cut rents an average of 1.4% in the year-ending June 2023. Aside from a small dip at the onset of the pandemic, rents in Salt Lake City have not been cut on a year-over-year basis since August 2010. While demand has been solid over the past year, it hasn’t been enough to keep pace with supply. Salt Lake City posted a record-high delivery volume of more than 6,000 units in the year-ending June and completions in the coming year are expected to be more than double that amount (12,400 units). For perspective, Salt Lake City added an average of roughly 3,400 units over the past 10 years and an average of 2,200 units over the past 20 years. Once the supply wave moderates, strong underlying demand drivers will provide a tailwind to performance fundamentals and Salt Lake City should once again return to its outperforming nature.

Apartment Demand Finally Matching Up with Job and Income Growth

2026-03-04T06:52:50-06:00

The U.S. apartment market has changed quite a bit in the past year, going from significant demand loss in 2022 to more normalized absorption in the first half of 2023. After the extreme volatility in the pandemic, experts hoped to see the return of notable traffic translating into demand in 2023. As of 2nd quarter, that trend is starting to come to fruition. While not spectacular, demand returned to the market in the first half of 2023. In 2nd quarter alone, roughly 84,000 units were absorbed. Though below long-term averages, that was a sizable amount of demand following 2nd quarter 2022, when deep loss was the prevailing trend. @include('site.elements.media.image', ['fileId' => 15451, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Until recently, there had been a disconnect between what job growth and income growth signaled should be happening in the market – and what was actually happening. Both job and income growth were strong throughout 2022, but those demand drivers did not align with weak apartment demand and consumer confidence. @include('site.elements.media.image', ['fileId' => 15794, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) In the first half of 2023, some of that pent-up apartment demand finally showed up, despite job and income growth easing from former highs. Additionally, new lease traffic has been strong, indicating renters are shopping around as record volumes of supply have expanded their options. Thus, rent growth is faltering as supply does what it’s supposed to do – slow down intense price increases.

Supply Hits a Peak in Four Big Apartment Markets

2026-03-04T06:52:50-06:00

With U.S. apartment supply hitting record levels, four of the nation’s largest markets also saw peak volumes delivered in the past year. The U.S. apartment market hit another supply milestone in 2nd quarter, when annual completions reached over 376,000 units, the biggest volume delivered since RealPage Market Analytics began tracking the market in the early 1990s. Recent deliveries increased the existing unit base by 2%. While most of the nation’s largest apartment markets have seen a similar surge in construction activity in recent years, four of the top 50 stand out for hitting all-time high supply volumes in the year-ending 2nd quarter. With the South making up a sizable portion of U.S. supply volumes recently, it’s no surprise that three of these markets are located in the southern portion of the country. @include('site.elements.media.image', ['fileId' => 15742, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Phoenix The only West region market on this list, Phoenix has made a reputation for itself for attracting significant apartment development in recent years. Roughly 16,800 units were delivered here in the year-ending 2nd quarter, which was the highest number in the nation. That new stock increased the existing apartment base by 4.2%. For perspective, the last two most recent peaks for annual supply in Phoenix were roughly half of that – around the 9,000 unit mark. Because of all this construction activity, apartment operators in Phoenix have been losing pricing power recently. While struggling in the conventional sector, however, it should be noted that some Phoenix universities are still logging significant strength in student housing rents. Atlanta Atlanta is the largest apartment market on the list, with about 555,000 existing units. In the past year, developers completed 16,715 units, increasing the stock by 3%. While that annual supply tally is a record for the market, Atlanta saw a similar peak in the year-ending 2nd...

Small Markets with Big Apartment Construction

2025-01-22T03:13:39-06:00

While prolific apartment construction is underway nationwide, some of the smaller markets have garnered increased investor interest and that’s playing out in spectacular inventory growth. Apartment construction has skyrocketed in many smaller communities as more flexible work situations and changing demography enables renters to select communities that are more aligned with their lifestyle choices. Colorado Springs tops the list with about 8,800 units currently underway – a huge volume for a market that received about 9,100 units total over the past 10 years. Nearly 6,700 of those units are expected to complete over the next 12 months which will grow inventory 12.3% – the highest inventory growth rate over the next year among all 150 markets tracked by RealPage Market Analytics. Meanwhile, Huntsville has nearly 8,100 units being built which translates to an astounding 20.9% inventory growth rate – by far the highest total construction growth rate among RealPage markets. Charleston and Myrtle Beach also make the list with about 7,300 units and 5,100 units underway, respectively. That is an especially large volume for Myrtle Beach which only received about 7,300 deliveries over the past 10 years. Sunny Florida claims three smaller markets on our list: North Port-Sarasota, Cape Coral-Fort Myers and Lakeland. Each of these markets are seeing elevated construction volumes that will grow existing inventory by more than 11%. Looking at the Mountain Region, Boise City has become a popular “Zoomtown” hotspot and has nearly 5,400 units under construction which will grow existing inventory by 17.1% – the second highest nationally after Huntsville. Provo has also seen construction skyrocket with about 4,400 units, growing inventory 16.3%, ranking Provo third place nationally. Slow-and-steady Omaha wraps up our list with nearly 4,200 units under construction equating to a 4.8% inventory increase, a more moderate pace of...

This Colorado Market Claims Largest Apartment Inventory Increase in the Nation

2025-04-21T14:13:33-05:00

The small Colorado Spring apartment market has been adding prolific amounts of new apartment units over the recent past, and the near future will be no exception. In the next four quarters, Colorado Springs is set to receive 6,700 new apartment units, swelling by 12.5% – the largest annual net inventory increase in the nation. Each of the market’s four submarkets will see big expansion, according to RealPage Market Analytics. North Colorado Springs will grow by 15.6% in the year-ending 2nd quarter 2024 as 2,450 units come online. East Colorado Springs will grow by an astounding 18.7% in the upcoming year as just over 2,000 units will be added to that submarket. Central Colorado Springs will grow by about 1,280 units, accounting for a 9.2% annual inventory jump. And West Colorado Springs will see about 950 new units delivered in the next four quarters, growing inventory by 7.2%.

Using Year-to-Date Figures to Better Understand Today’s Apartment Fundamentals

2026-03-04T06:52:50-06:00

Annual rent change is important, but it’s far from the only rent growth metric that holds value. One of the downsides of annualized calculation is that it is a lagging indicator of current fundamentals. It can also mask very recent (for instance, quarterly) history. Year-to-date (YTD) rent growth, on the other hand, can provide some insight into recent performance momentum. Though far from a perfect metric, it can be telling at specific points of the year – particularly at the halfway point. YTD rents have grown 1.9% across the U.S. (through June 2023), according to data from RealPage Market Analytics, which signals strong demand remains in the market. Similarly, occupancy has calmed somewhat in recent months and has only fluctuated 10 basis points (bps) since January to stand at 94.7% in June. This further signals the market is stabilizing after a challenging second half to the 2022 calendar year. Still, YTD growth of 1.9% through June 2023 is modest-at-best within a historical context. In fact, that YTD figure comes in as the second weakest since 2010 (with lowest year being an outlier stemming from the COVID pandemic). @include('site.elements.media.image', ['fileId' => 15695, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) The lack of 2023 momentum might come as a surprise when comparing the two prior years (both of which were the strongest YTD growth rates since 2010). But isolating second half of the year rent growth (July to December) shows that the sluggish start to 2023 was actually beginning to emerge late last year. Between July and December 2022, rents contracted by roughly 0.3%. That contraction clocks in larger than the average change in the second half of the year dating back to 2010 (+0.4% growth). It should be noted, though, that excluding the anomalous 2021 shows an average contraction of -0.1% during the second half of the year. @include('site.elements.media.image', ['fileId' => 15694, 'attributes' => ['border' =...

Student Leasing Surges Again in Final Summer Pre-Lease Push

2026-03-04T06:52:50-06:00

If you thought student housing pre-leasing might slow slightly in the final couple months of the pre-lease season, think again. As of June, 85.7% of beds at the core 175 universities tracked by RealPage Market Analytics had been leased for the Fall 2023 school year – marginally below June 2022’s record clip of 86.2%. A typical pre-COVID June reading hovered much lower at around 75%. Though it’s unlikely that August’s final pre-lease rate will reach 100%, clearing the effectively full watermark of 90% seems inevitable. In 2022, the final pre-lease rate reached 95.7%, the highest reading on record. Hitting last year’s all-time high pre-lease rate is still possible, but even more likely is Fall 2023’s final pre-lease rate hovering well above the pre-COVID norm of about 90%. @include('site.elements.media.image', ['fileId' => 15618, 'attributes' => ['border' => '0']]) Two months remain to fill less than 15% of vacant purpose-built student housing beds across the RealPage 175. Though, of course, some schools are fully leased. About 13 schools are fully leased as of June, including Purdue, University of Tennessee, Texas Christian University, Appalachian State, College of Charleston, University of Delaware, Oregon State, University of Arkansas, Florida Gulf Coast, University of North Carolina, University of Cincinnati, Eastern Michigan and North Carolina State. Across the distance spectrum, those properties within a half mile to campus are – as usual – more leased than their father counterparts. As of June, properties within a half mile of campus were 87% leased, compared to the lowest reading of 81.6% at properties within a half mile to one mile of campus. @include('site.elements.media.image', ['fileId' => 15621, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '483']]) As has been the case, rent growth remains at all-time highs in the student housing sector. As of June, annual effective same-store rents grew 9.5% across the RealPage 175. Arizona Stat...

Texas Accounts for Nearly 20% of National Job Gains

2025-01-22T03:13:39-06:00

Despite recent declines, Texas job growth numbers remain strong on a national scale. In year-ending May 2023, Texas markets added some 474,000 additional jobs, according to data from the Bureau of Labor Statistics. That makes up a significant 17.5% share of the nation’s total employment growth for the past 12 months. The share of market value Texas has gained in the past two years is notable. Back to 2021, the Texas share of U.S. job growth was much lower at 8.6%. While Texas job growth has slowed – just a year ago, annual employment growth was closer to 700,000 jobs – that contraction is a natural product of tight unemployment rates. Roughly 4.1% of all Texas were unemployed as of May 2023. When widening the scope, however, the major markets across the Lone Star State are holding on to better job gain traction than many other markets across the U.S. Dallas and Houston are among the top three job growth markets in the U.S. as of May, while San Antonio, Austin and Fort Worth all rank among the nation’s top 15.

3rd Quarter 2023 Forecast Update

2026-03-04T06:52:50-06:00

On the back of improved but still muted apartment demand in 2nd quarter 2023, RealPage has downgraded expectations for apartment performance through 2023 and into 2024. Year-to-date rent growth in the U.S. (1.9% through June 2023) clocks in well below the 2010s decade average (3.6%). And that theme is common among most major U.S. markets. It’s hard to foresee a scenario in which rent growth expands substantially between July and December. The average rent growth rate from July to December in the entire 2010s decade registers at exactly 0.0%. So it would be extremely unexpectedly strong performance in the back half of 2023 if rents change surged beyond its current year-to-date level. In 2022, from July to December rents contracted 0.3%, marking a weaker than typical reading. Given that recent comparison point, 2023 expectations are mild at best. Plus, current challenges to the market will linger into 2024. Robust supply, persistent unknowns from the impact of rising interest rates, slowing job growth and demographic shifts all impact apartment market performance. Therefore, RealPage downgraded its forecast model both quantitatively and qualitatively from prior expectations. Still, positives remain in the outlook period. Inflation is finally cooling. Labor force participation continues to climb. And wage growth among conventional market-rate renter households continues to match pace with rent growth (thereby keeping median rent-to-income ratios in balance with 2010s norms). @include('site.elements.media.image', ['fileId' => 15603, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Ultimately, the outlook for the remainder of 2023 and well into 2024 is cautiously conservative. By 2025 however, the impact of rising interest rates should begin to show up in actualized deliveries. Already the challenge(s) stemming from securing construction financing appear to be weighing heavy on new construction starts – even if recent Census permitting fi...

U.S. Inflation Records a Sharp Cooldown

2025-01-22T03:13:39-06:00

Consumer price increases are retreating from decade highs, with the cost of goods and services for U.S. consumers easing for the 12th consecutive month. The Consumer Price Index (CPI) for All Urban Consumers, a measure of price changes commonly referred to as the inflation rate, registered at 3% in the year-ending June 2023, the lowest level since March 2021, according to the Bureau of Labor Statistics. The annual inflation rate in June was in line with economists’ expectations of 3.1% and well below May’s 4% annual gain. In addition, inflation has cooled considerably since reaching a 40-year high of 9.1% in June 2022. Still, inflation has been well above the Fed’s target rate of 2% annually – the pre-pandemic norm. Excluding volatile food and energy prices, the core CPI increased 4.8% during the year-ending June, down from the 5.3% annual increase in May and the lowest level since October 2021. Looking at other indexes, shelter, which accounts for about one-third of the total CPI index, saw a 7.8% year-over-year price surge in June, still registering as one of the biggest annual gains in the past 40 years. Meanwhile, the cost of food was up 5.7% over the past year. And new vehicles posted an annual price increase of 4.1%. Contributing to the lower inflation rate, the cost of energy dropped 16.7% year-over-year in June, with the cost of gasoline (-26.5%) having a deep impact on that decline. The price of used cars and trucks (-5.2%) was also down on an annual basis. Airline fares, which saw huge price jumps in 2022 through early 2023, fell 18.9% in the year-ending June.

Apartment Demand Reaches Recent High, But Still Below Long-Term Norm

2026-03-04T06:52:49-06:00

Apartment market performance in 2nd quarter 2023 yields mixed results. On one hand, the U.S. recorded positive quarterly absorption for roughly 84,000 units, according to data from RealPage Market Analytics. This was the largest quarterly absorption figure since 1st quarter 2022 when the nation saw unseasonably strong absorption, totaling some 84,000 units. On the other hand, 2nd quarter 2023 absorption clocks in at just 60% of the 2nd quarter average through the 2010s decade. @include('site.elements.media.image', ['fileId' => 15506, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) The improved – yet ultimately mild – absorption figure in 2nd quarter generally mirrors the current climate for apartment demand. Leasing traffic (or leads per total unit) shows that renters are indeed shopping for new leases at a seasonally normal rate. And top-line demand indicators such as job growth and income growth support healthy demand. Further, resident retention has rebalanced closer to expected norms even though retention rates have cooled from last year’s peak. @include('site.elements.media.image', ['fileId' => 15513, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) The result of normalizing retention and more regular lead volumes is an occupancy rate that more closely matches long-term averages. U.S. apartments were 94.7% occupied as of 2nd quarter 2023, just 10 basis points off the nation’s 20-year average. Still, a normal rate of residents shopping the market doesn’t necessarily mean a high lead-to-conversion rate. @include('site.elements.media.image', ['fileId' => 15508, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) As vacancy rates have climbed 2.1% over the past 12 months, there are more available units from which renters can choose. Further explaining the increase in vacancy is a record amount of new construction. About 108,000 new units came online in the April to June time frame, pushi...

Hiring in U.S. Slows in June, But Labor Market Remains Resilient

2026-03-04T06:52:49-06:00

Job growth in the U.S. eased in June. However, job growth remains resilient despite efforts by the Federal Reserve to dampen inflation. U.S. employers have now added jobs for the past 30 months. The Fed has imposed 10 rate hikes since March 2022 which has taken the federal funds rate to a 16-year high of more than 5%. The pace of hiring is continuing to put upward pressure on wages and inflation. While the labor market outlook is uncertain, job growth remains above pre-pandemic levels, and unemployment remains among historically low rates. @include('site.elements.media.image', ['fileId' => 15494, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Employers added roughly 209,000 employees to payrolls in June 2023, according to the Bureau of Labor Statistics (BLS). That was the weakest month-over-month gain since December 2020 when the U.S. recorded a decline in jobs. In addition, the nation’s recent job additions came in short of economist’s projections (225,000 to 240,000 jobs) and well below May’s gain of 306,000 jobs. @include('site.elements.media.image', ['fileId' => 15493, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) While recent job gains were below the monthly average of around 339,000 jobs added in 2022, employers are continuing to hire more workers than they did prior to the pandemic. From 2015 to 2019, the U.S. economy added an average of roughly 190,000 jobs each month. On an annual basis, the nation gained nearly 3.8 million jobs in June 2023. Although down from the annual gains recorded throughout much of 2021 and 2022, that was well above the average of around 2.4 million jobs added annually from 2015 to 2019. Downward revisions to April 2023 data showed 77,000 fewer jobs were added than previously reported, down to 217,000 positions. The May 2023 growth number was also revised down, decreasing by 33,000 jobs to a total of 306,000 positions. With these revisions, employment gains in April and Ma...

West and Midwest Markets Achieve Occupancy Growth in 2023

2025-01-22T03:13:39-06:00

While U.S. apartment occupancy inched down a bit during the first six months of 2023, a handful of large markets – located in the West and Midwest – achieved better results. Among the nation’s largest apartment markets, only a few have logged increases of 10 basis points (bps) to 40 bps so far in calendar 2023. That contrasted with the U.S. overall, which suffered an average occupancy decline of 20 bps in the first six months of calendar 2023, according to data from RealPage Market Analytics. San Jose is the leader for occupancy growth year-to-date, with an increase of 40 bps. After falling to 95.4% at the end of last year, occupancy in Silicon Valley has recovered to 95.8% as of June. Other West Coast markets to see rebounding rates this year are San Diego, San Francisco and Seattle. Midwest markets Chicago, Milwaukee and Minneapolis also made the list, with upturns of 10 bps to 30 bps thus far in 2023.

Apartment Demand Rebounds as Rent Growth Further Cools

2026-03-04T06:52:49-06:00

While rent growth continues to cool rapidly, apartment demand is rebounding so far in 2023. Net absorption came in just shy of surging new supply levels in 2nd quarter 2023, stabilizing occupancy rates after a precipitous decline in 2022. Net demand registered at 83,449 units in 2nd quarter, according to RealPage data. That marked a five-quarter high but was well below the record numbers seen during the 2021 boom. @include('site.elements.media.image', ['fileId' => 15451, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Apartment demand appears to be normalizing as expected so far this year. That’s good news, but it’s still not enough to keep pace with new supply – and likely won’t be as completions peak later this year and well into 2024. Through the first half of 2023, more than three-fourths of net new demand has gone to the Sun Belt or Mountain region, led by Houston, Phoenix, Dallas/Fort Worth, Charlotte, Nashville and Austin. Demand hotspots elsewhere included Chicago, Washington, DC and Northern New Jersey. Conversely, net demand was more limited along much of the West Coast. @include('site.elements.media.image', ['fileId' => 15456, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) The demand rebound comes just as the 50-year high in apartment construction begins to convert into peak completions. More than 107,000 apartment units completed in 2nd quarter 2023, and RealPage is tracking more than 1 million additional units under construction at the end of June. Completions are expected to remain elevated through 2024 before easing in 2025. Ongoing construction tops 25,000 units in 17 markets across the country, led by Dallas/Fort Worth, Phoenix, New York, Austin, Northern New Jersey, Houston, Atlanta and Washington, DC. Demand continues to go where supply is going, which is normal. Demand may not stay in lockstep with supply in the short term, but in the longer term, there’s still a need for more housing....

Net Move-Outs Continue in Fresno

2025-01-22T03:13:39-06:00

While U.S. apartment demand is below seasonal norms across the U.S., Fresno is suffering worse than most, logging a fifth consecutive quarter of net move-outs in the April-June timeframe. This small California market with about 56,600 units located just south of the Bay Area is one of the most affordable apartment markets in the state. And recently, apartment demand loss has held on here, continuing with net move-outs from another 186 units in 2nd quarter, taking the market’s annual loss to 1,581 units, according to data from RealPage Market Analytics. Meanwhile supply, which was already very mild, has disappeared altogether. No new apartments were delivered in Fresno in 2nd quarter, marking a sixth quarter void of deliveries. The pipeline here isn’t completely dried up, though. Looking forward, 420 units are under construction in Fresno, with all that supply scheduled to complete in the coming year. Net move-outs in Fresno have weighed on occupancy recently, but even with declining fundamentals, occupancy here remains tight at 96.7%.

Boston Boasts the Nation’s Lowest Unemployment Rate

2025-01-22T03:13:39-06:00

Unemployment across the U.S. continues to register at historically low levels thanks to an improved job market. As of May, the nation’s unemployment rate averaged 3.4%, according to non-seasonally adjusted data from the Bureau of Labor Statistics. While that was up from 3.1% in April, it was unchanged year-over-year and marked the second consecutive month below 3.5% and the 15th consecutive month below 4%. For comparison, during the two years leading up to the COVID-19 pandemic (2018-2019), unemployment registered between 3.3% and 4.5%, averaging 3.8% nationally. Prior to that period, unemployment hadn’t fallen below 3.5% since the late 1960s. Among the nation’s 50 largest markets, Boston recorded the lowest unemployment rate in May at 2.1%, followed by Baltimore and Miami, both at 2.2%. Those three markets even edged out Salt Lake City (2.4%), which prior to the pandemic, typically had the lowest unemployment rate nationally. On the flip side, Las Vegas posted the highest unemployment rate in May, at 5.6%. The next worst performer was Los Angeles, with unemployment at 4.8%. Unemployment rates in May were lower than a year ago in 20 of the nation’s largest markets, higher in 24 and unchanged in six. The most improved unemployment rates in May were seen in Boston and Cleveland, with both posting year-over-year declines of 110 basis points. The weakest performances were in San Jose and Riverside, where unemployment rose around 100 basis points over the past year.

Ranking U.S. Apartment Rent Growth by Geographic Region

2025-01-22T03:13:39-06:00

While apartment market fundamentals examined on a regional basis tend to point to the South as the best performer in many respects, the tale turns a different direction when discussing rent growth. RealPage Market Analytics is exploring performances variations across the regions in a series of blog posts. Read the first three in this series, covering apartment demand by region, occupancy by region and supply by region. As of 1st quarter, annual effective asking rent growth was at a moderate 4.5% in the U.S. overall. This is a bit ahead of the pace the nation was clocking in the five years leading up to the COVID-19 pandemic, when the average annual upturn was 3.6%. The economic crisis led the U.S. to turn to rent cuts in 2020, with declines bottoming out at 1.4%. Rent cuts were seen everywhere, but nowhere more prominently than in the West region of the country. In 2022, rent growth nationwide didn’t just bounce back – it saw an unprecedented surge, with price hikes getting as high as 15.3%. The South was the big beneficiary of this surge, but the West also logged sizable growth. More recently, rent growth has eased nationwide, falling from those steep highs, but stopping just ahead of pre-pandemic norms. The Northeast Average effective asking rents were up 5.9% in the year-ending 1st quarter.* That included a boost of 0.2% in the first three months of the year alone. Only the Northeast and Midwest are still seeing mild rent increases on a quarterly basis. Today’s rent growth figures are nearly double the annual average for the Northeast region during the five years leading up to the COVID-19 pandemic. During the most recent rent decline in 2020 and 2021, the Northeast logged annual rent cuts that got as deep as 1.7%. But this part of the country experienced a quick turnaround, and annual price increases jumped into the double digits, getting as high as 12% in 2022. Helping operators continue to raise rents here, this part of the county typ...

Multifamily Starts Surged in May – or Did They?

2026-03-04T06:52:49-06:00

Editor's note: This blog is part of a monthly series written by RealPage Senior Real Estate Economist Chuck Ehmann in which he examines multifamily and single-family starts and permits from the U.S. Census Bureau. Read previous blogs in this series here. According to Census numbers, May 2023 starts hit a 36-year high in May – an accolade RealPage Chief Economist Jay Parsons has called into question. Read his commentary discussing the validity of that number here. The seasonally adjusted annual rate for multifamily starts jumped 28.1% in May to 624,000 units. However, there are a few caveats. April’s rate for multifamily starts was adjusted down 11.3% from 542,000 units to 487,000 units, giving May’s increase a bigger percentage boost. Additionally, the average relative standard error for a 90-percentile confidence interval is about ±40%, meaning the rate for multifamily starts could range from 336,000 to 912,000 units. That 624,000 units in multifamily starts for May is not an annual total but the annualized seasonally adjusted monthly start rate. Technically not a forecast or projection, it is simply the seasonally adjusted monthly value multiplied by 12. This allows for comparisons between months and years but can cause confusion if you think of it as the total starts in the past year. The total for unadjusted multifamily starts in the year-ending May was 540,700 units, up 9.1% from the year before. The January to May increase is 4.6% compared to 2022. This gives some perspective on seasonally adjusted data versus not seasonally adjusted data. Multifamily permitting is also seasonally adjusted, and May’s rate is 542,000 units, up 7.8% from last month but down 11.9% from last May. However, building permit data is collected from almost 20,000 permit issuing places as opposed to a survey sample of about 900 places for the Survey of Construction data (starts, completions, etc.), thus there are no confidence limits for seasonally adjusted permit data. @include('si...

U.S. Economy Stronger Than Expected in 1st Quarter 2023

2025-01-22T03:13:39-06:00

The U.S. economy was stronger than expected during the first three months of the year despite rising interest rates and other economic headwinds. According to the third and final estimate for real gross domestic product (GDP) recently released by the Bureau of Economic Analysis, real GDP grew at an annual rate of 2% in 1st quarter 2023. That was revised up from the second estimate of 1.3% and up from the first estimate of 1.1%. While the final 1st quarter estimate was above expectations (1.4%), it was below the annualized expansion rate of 2.6% in 4th quarter 2022. The deceleration in real GDP from 4th quarter to 1st quarter primarily reflected a downturn in private inventory investment and a slowdown in nonresidential fixed investment that were partly offset by an acceleration in consumer spending, an upturn in exports and a smaller decrease in residential fixed investment. The recent estimate for 1st quarter 2023 real GDP was based on more complete source data than was available with previous estimates and primarily reflected an upward revision to exports and consumer spending. Those increases were partly offset by decreases in nonresidential fixed investment and federal government spending.

U.S. Mortgage Rates Rise, Ending Three-Week Streak of Decline

2025-01-22T03:13:39-06:00

After falling for three consecutive weeks, the average long-term U.S. mortgage rate picked back up in the last week of June. In the week-ending June 29, the benchmark 30-year mortgage interest rate averaged 6.71%, based on applications submitted to Freddie Mac from lenders across the country. That rate was up from 6.67% the previous week but below the two-decade high of 7.08% recorded in fall 2022. Still, the average long-term U.S. mortgage rate remains above the year-earlier rate of 5.7% and well above the historic low of 2.65% in early January 2021. Rates have now hovered in the 6% to 7% range for more than nine months. This stretch of rates consistently above 6% hasn’t happened since 2008. For perspective, during the five years leading up to the pandemic (2015-2019), the 30-year fixed-rate mortgage interest rate ranged from 3.41% to 4.94%, averaging 3.99%.

Student Housing Supply Enters New Baseline

2026-03-04T06:52:49-06:00

Throughout the 2010s decade, student housing deliveries averaged about 50,000 beds annually. The 2020s decade already looks to be setting a new baseline at a lower annual rate. Expect around 37,000 student housing beds to deliver in Fall 2023. That expected delivery total comes strikingly close to RealPage Market Analytics’ March estimate, indicating that construction delays were less common than initially expected. And the primary reason for construction delays – that is, construction financing difficulties – indicates that peak supply volumes are in the rearview mirror, at least in the short term. In Fall 2024, expect an even lower number of deliveries because of this, accounting for about 31,500 beds. @include('site.elements.media.image', ['fileId' => 15264, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) And while supply volumes may be tapering off on a national level, plenty of schools buck that trend. The University of Wisconsin - Madison will receive a staggering 2,800 new beds in the for the Fall 2024 school year – easily the campus leader for the year. Madison has historically been a high barrier to entry market, but that appears to no longer be the case. The University of Texas at Austin, no stranger to high levels of new supply, claims the second spot for new supply in Fall 2024 with an expected 2,400 new beds. Florida State and the University of Cincinnati will both get about 1,500 to 1,600 new beds in Fall 2024. And Oregon, Purdue, Florida International, Tampa, Penn State and Texas A&M will also all see over 1,000 new beds. @include('site.elements.media.image', ['fileId' => 15263, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Another 18 schools will see between 500 and 900 beds come online by the start of Fall 2024, including several larger state schools like Michigan, Maryland, Georgia, Tennessee and Florida. @include('site.elements.media.image', ['fileId' => 15265, 'attributes' => ['border'...

Small Apartment Markets with Improved Occupancy

2025-01-22T03:13:39-06:00

Despite a year-to-date national decline of 20 basis points (bps), a handful of small apartment markets have logged notable occupancy growth thus far in calendar 2023. The standout performer in this group was Midland/Odessa, TX, where just a few years ago, occupancy was below the 90% mark, according to data from RealPage Market Analytics. By the end of 2022, occupancy had worked its way up to 92.3% and since then, the rate has climbed another 110 basis points. This was a staggering performance compared to what was seen across much of the nation. In fact, the U.S. overall suffered an average occupancy decline of 20 bps in the first five months of calendar 2023. Recent occupancy increases in Midland/Odessa have helped the market become a nationwide leader in revenue growth in the past year. However, annual occupancy growth in this market was better at 140 bps, meaning that the pace of increase has actually slowed in the Texas oil-dependent market. Every other market with occupancy growth thus far in calendar 2023 logged an annual decline as of May. In other words, while occupancy is down since May 2022 in those markets, the story actually started looking more positive in recent months. The biggest turnarounds occurred in Pensacola-Ferry Pass-Brent, FL and Mobile/Daphne, AL. These southeast coastal markets saw notable decline in the back half of 2022, but the bloodletting has eased and occupancy in both these areas is now well ahead of December 2022 rates.

U.S. Home Prices Increase for Third Straight Month

2025-01-22T03:13:39-06:00

U.S. home prices rose in April due to a limited supply of for-sale listings. However, on an annual basis, home prices posted a decline for the first time in 11 years, as higher mortgage rates made home purchases more expensive for buyers. Home prices were up 1.3% from March to April, according to the S&P CoreLogic Case-Shiller U.S. National Home Price Index, which measures average home prices across the nation. While that was the third month in a row that prices have increased, the annual rate of change has weakened over the past year. Home prices were down 0.2% year-over-year in April 2023, a weaker result than the 0.7% annual increase in March 2023 and the first annual decline since April 2012. Looking at more granular results, the S&P CoreLogic Case-Shiller 20-City Composite Index, which tracks prices in the 20 largest metros, posted a 1.3% month-over-month gain, while the annual change went from a decline of 1.1% in March to a decline of 1.7% in April. In April, all 20 cities in the index reported month-over-month price increases. The largest monthly increase was in Boston (2.9%), followed by Cleveland, Detroit and Seattle (all three at 2.3%). On an annual basis, 10 of the 20 metro areas recorded lower prices, with the deepest pull backs in West region markets, led by Seattle (-12.4%) and San Francisco (-11.1%). The nation’s biggest annual hikes were primarily in South region markets, led by Miami (5.2%), Chicago (4.1%), Atlanta (3.5%) and Charlotte (3.4%).

Ranking U.S. Apartment Supply by Geographic Region

2025-01-22T03:13:38-06:00

As apartment market fundamentals changed over the past few years, performances varied across the nation’s four geographic regions. One key area of differentiation recently has been increased volumes of new supply. RealPage Market Analytics is exploring performance variations across the regions in a series of blog posts. Read the first two in this series, covering apartment demand by region and occupancy by region. The South When talking about big apartment delivery volumes, the discussion always starts with the South. Apartment markets in the South region of the U.S. account for over half of the nation’s total construction volume from the past year. Roughly 190,150 units were delivered in the South, increasing the existing apartment base – which is already the largest nationwide at 7.9 million units – by 2.4%. Last year’s apartment delivery volumes top recent norms, which have been ramping up in the South. The five-year average for this region is 172,000 units delivered annually while the 10-year norm is closer to 156,000 units. Sun Belt markets are prominent in the South, and these are the areas mostly responsible for the region’s record new supply. Texas’ big three – Dallas, Houston and Austin – were supply giants in the past year, while volumes were also sizable in Washington, DC and Atlanta. But if you thought last year’s deliveries were big, you should see what’s currently under construction. Apartment developments rising in the South total about 546,500 units – more than double the already heavy volumes from last year. That stock is scheduled to swell the existing count by another 6.9% – a stunning figure even for this region. Roughly 320,000 of those are slated to complete in the coming year, which is nearly double last year’s volume. The West The second biggest chunk of new apartment supply nationwide – about 24% – was delivered in West region markets in t...

Typical Market Leaders Rank Among Bottom 10 for Absorption

2026-03-04T06:52:49-06:00

Demand slowed considerably in the back half of 2022. That story seems to have improved in the first few months of 2023 across several major U.S. apartment markets. However, a few of the largest 50 markets remain in negative territory for annual absorption. Among those, 10 markets recorded net move-outs from 5,500 units or more including heavy hitters like Los Angeles, Dallas, New York and Houston, according to data from RealPage Market Analytics. @include('site.elements.media.image', ['fileId' => 15140, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Though the bleeding has slowed, three top 50 markets recorded net move-outs from more than 10,000 units in the year-ending 1st quarter 2023: Los Angeles (-14,914 units), Houston (-13,537 units) and Dallas (-10,383 units). The remaining seven of the 10 worst performers recorded negative absorption ranging from 5,500 units to 8,300 units: New York (-8,328 units), Detroit (-8,114 units), Chicago (-7,576 units), Atlanta (-6,829 units), Las Vegas (-5,851 units), San Antonio (-5,769 units) and Riverside (-5,527 units). Several of these markets also saw high delivery volumes over the 12-month period, impacting occupancy, including Dallas, Atlanta, Houston, New York and Los Angeles. Occupancy in every market except New York and Chicago sat below the five-year average as of 1st quarter 2023. @include('site.elements.media.image', ['fileId' => 15139, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Among this group of bottom performers, San Antonio realized the deepest decline in occupancy year-over-year, falling 430 basis points (bps) to 92.5%. Occupancy fell between 300 and 400 bps in six markets: Las Vegas (-390 bps), Dallas (-360 bps), Atlanta (-350 bps), Houston (-350 bps), Detroit (-340 bps) and Riverside (-310 bps). Occupancy in Los Angeles remains tight but fell 210 bps for the year to 95.8% as 1st quarter 2023. Essentially full, occupancy in the Chicago apartment mar...

Despite Supply Headwinds, Carolinas Rents Continue to Increase

2025-01-22T03:13:38-06:00

Despite elevated new apartment construction activity, the Carolinas have maintained decent pricing momentum close to the U.S. average. In May 2023, rents were up by 0.5% in the Carolinas, a monthly pace right in line with the national norm of 0.4%. Normally, this would not be quite an impressive feat. But it becomes one when considering supply headwinds. In the past decade, Carolinas markets made up four of the top 10 markets for inventory growth rates. Charleston led the nation with an increase of 61% over the last 10 years, while markets with inventory growing by around 50% include Charlotte, Asheville and Wilmington. Raleigh/Durham just missed a top 10 showing with a 10-year inventory increase of 40%, while Greenville/Spartanburg, SC was up by about 30%. Despite such big volumes of new construction activity, however, rents continue to maintain strength in these markets. For more information on the state of the Carolinas apartment market, including forecasts, watch the webcast Market Intelligence: Q2 Carolinas Update.

Did Multifamily Starts Really Hit a 36-Year High in May? Probably Not.

2026-03-04T06:52:49-06:00

The latest U.S. Census Bureau numbers on multifamily construction starts delivered a major surprise: Multifamily starts hit a 36-year high in May 2023 at 58,500 units, up 41% from April. That’s a shocking spike. But is it true? Probably not. @include('site.elements.media.image', ['fileId' => 15158, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Here are five reasons to question the May numbers from the Census. 1. Construction delays are accelerating due to financing issues. Anecdotally, we’re hearing more stories of stalled apartment projects than at any point since the Great Financial Crisis. Not just delayed due to supply chain or labor issues. But stalled altogether due to difficulty securing construction financing and/or equity. The National Multifamily Housing Council’s quarterly construction survey backs this up. In March 2023 (the latest period available), respondents said 40% of delays were due to availability of construction financing. That was up from 15% one year earlier, before rates started their rapid ascent. 2. Banks are pulling back on construction loans. The first reason directly ties to our second reason: Banks are pulling back on lending. The Federal Reserve’s most recent senior loan officer survey showed roughly 75% of respondents reported tightening loan standards for commercial real estate construction and development (which includes multifamily). Outside of the pandemic lockdown period, that was easily the most rapid tightening seen since the Great Financial Crisis. Many banks are either fully allocated to the sector or pulling back to preserve cash due to regulatory pressure. The cost of debt is high, and loan-to-cost ratios have plunged. That means that even if you find willing lenders, you still need to raise a lot more equity – which is no easy task in 2023. 3. The Census methodology is notoriously thin and volatile. The Census estimates construction starts by extrapolating data from a small survey of p...

Small Markets with Apartment Rents Below $1,000

2025-01-22T03:13:38-06:00

After a few years of elevated rent growth, average monthly asking rents for the largest 150 apartment markets across the U.S. is $1,809. Prices are now as high as $3,000 to $4,000 in New York and the Bay Area, according to May data from RealPage Market Analytics. In fact, rates are up pretty much across the board, with all but 10 small markets logging rents above the $1,000 mark. Among the markets with rates still below $1,000, all are located in the Midwest or the South regions. Youngstown-Warren-Boardman, OH-PA and Wichita, KS are tied for lowest average rents in the nation, with prices at just $853. Markets with rents between $930 and $960 include Lubbock, TX, Tulsa, OK and Springfield, MO. Of note, Springfield, MO is the smallest of these markets, with an existing apartment count just shy of 25,000 units. Logging prices between $975 and $1,000 were Fargo, ND-MN, Flint, MI, Champaign-Urbana, IL, Oklahoma City, OK and McAllen/Brownsville, TX. Oklahoma City was the only one of these markets with an existing apartment count of more than 100,000 units.

Despite Slowing, Metro Job Gains Remain Robust

2026-03-04T06:52:49-06:00

Annual employment gains in the nation’s top markets continue to surprise economic experts, as the latest data release from the Bureau of Labor Statistics (BLS) indicates continued solid growth. Nationally, gains approached 349,000 jobs in May while the unemployment rate jumped from 3.4% to 3.7%, a sign that job seekers are attempting to rejoin the workforce. The nation’s top markets reflect this continued growth even as the level of growth moderates. The total number of jobs gained in the top 10 markets RealPage tracks for the year-ending May, was about 13,000 jobs greater than last month (a slight increase of 1.3% from April). Additionally, only one of the top 10 markets for annual job gains in May saw a decrease in employment from April’s not seasonally adjusted levels. @include('site.elements.media.image', ['fileId' => 15113, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Nine of last month’s top 10 markets returned to this month’s list with the first six remaining in place and a few other markets changing rankings. New York continues to lead the nation in annual gains with 212,600 new jobs for the year-ending May, up about 3,000 jobs from last month but 266,500 less than last May. Dallas returned at the #2 spot with an annual gain of 121,800 jobs, 76,400 jobs fewer than last year and 4,900 less than April’s annual total. Houston remained in the #3 spot, gaining 119,100 jobs for the year, down 70,600 from last May but 6,500 more than last month. Los Angeles returned in the #4 spot, adding 97,800 jobs but slowed by more than 165,900 jobs from last year and 8,400 jobs from last month. This is the first time LA fell below the 100,000-job gain level since the pandemic recovery began. Philadelphia and Chicago remained in the #5 and #6 spots with 90,600 and 81,900 jobs gained each (an average monthly improvement of 6,800 jobs), despite slowing by 70,100 and 125,700 jobs from last year, respectively. Boston and Atlanta switched places...

Apartment Residents Shopping at a Seasonally Normal Rate

2026-03-04T06:52:49-06:00

Apartment traffic data suggests May 2023 looked … well, pretty normal in many ways. This is really a continuation of the trend we’ve seen in the first few months of the late spring/early summer leasing season. That is, many data points appear to be essentially on track with a more normal year, perhaps with the exception of rent growth which is behind typical levels. For example, year-to-date rent growth (1.4% for the U.S.) hasn’t been able to match what you’d typically expect through May. Having said that, lead volumes help support why we’re still seeing rent growth even if it’s muted. Looking at lead volumes (generated from virtual and/or physical guest cards created) across the country is a nice way to gauge the potential for future demand, as those who are shopping today will likely become tomorrow’s new resident. (One caveat to that coming up in a bit, though.) @include('site.elements.media.image', ['fileId' => 15065, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) May 2023 doesn’t necessarily look like any one of the past five Mays (and this is where averages can be misleading in all fairness). But by that same token, May 2023 leads are still above the late 2010s cycle norm even if not at the crazed 2021/early 2022 levels. But the fact is that today’s traffic measure shows that residents are shopping at a seasonally normal rate. The difference in May 2023 versus previous Mays? That’s how much new inventory is being added to the pipeline, without question. RealPage Market Analytics estimates show an additional 20% increase in the construction pipeline from May 2022 to May 2023 – and keep in mind that May 2022 was already well into record territory. As started earlier, there’s a caveat with the leads figure. This is total leads, NOT conversions. One renter can shop multiple properties. That wasn’t as true in the first half of 2022 because occupancy rates were incredibly tight. Today as occupancy gets back to historically normal leve...

Cleveland Apartment Occupancy Tight Amid Limited New Supply

2026-03-04T06:52:49-06:00

The Cleveland apartment market has been exceeding U.S. norms for occupancy and rent growth, while construction activity remains low. Among the nation’s largest 50 apartment markets, Cleveland has the smallest proportion of units under construction. Located along the southern shore of Lake Erie, Cleveland has a little more than 171,000 existing apartment units. @include('site.elements.media.image', ['fileId' => 15010, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Occupancy in Cleveland has registered above 95% for five years. During that period, occupancy peaked at 98% in early 2022 and has since been trending down. Net move-outs in the year-ending May pulled occupancy down by 210 basis points (bps) year-over-year, with the rate landing at 95.3% in May, according to data from RealPage Market Analytics. While that was slightly above Cleveland’s five-year norm from 2015 to 2019 (95%), the current showing was higher than the national average (94.7%). In fact, Cleveland has registered occupancy above the U.S. norm for much of the past five years. Class A occupancy in Cleveland slipped to 94.2% in May, while Class B occupancy stood at 94.8% and Class C properties were 96.3% full. Among Cleveland’s 10 submarkets, four – Westlake/North Olmsted/Lorain County, Lake County, Parma/Middleburg Heights and Strongsville/North Royalton/Medina – had occupancy rates above 96% in May. Only Central Cleveland (91.1%) posted occupancy below 93%. @include('site.elements.media.image', ['fileId' => 15009, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Like occupancy, annual rent growth remains above historic norms but is slowing from unsustainable levels (though the peaks seen here didn’t rival the gains in other markets). During the pandemic, rents were never cut in Cleveland and annual rent growth peaked at 10% a year ago. Cleveland’s annual change in effective asking rents was a solid 3.7% in May 2023 and registered above the nat...

10 Markets with the Most Fortune 500 Headquarters in 2023

2025-01-22T03:13:38-06:00

The nation’s 500 biggest revenue-generating businesses produced a total of roughly $18.1 trillion in revenue during 2022, an increase of 13% from 2021, according to the recently released Fortune 500 rankings. That revenue figure represents roughly two-thirds of the nation’s gross domestic product. Although New York continues to rank as the nation’s top market for Fortune 500 headquarters, the numbers of those prestigious companies have been declining. New York laid claim to the headquarters of 47 Fortune 500 companies in the 2023 ranking, down one company from 2022’s list and down five companies over the past five years. The #2 market in the nation was Chicago, home to 31 Fortune 500 companies after losing four top businesses. Two big Texas markets – Houston (#3) and Dallas (#4) – have 25 and 22 Fortune 500 headquarters, respectively. Both Houston and Dallas gained one company over the past year. San Jose landed in the #5 spot, after gaining three Fortune 500 headquarters, taking its count to 20. Washington, DC overtook Atlanta after gaining two companies in the past year for the #6 ranking with 18 Fortune 500 headquarters. Atlanta lost one company and moved down to the #7 slot with 16 Fortune 500 businesses. Boston, Minneapolis and San Francisco tied at #8, all three with 14 companies. Boston and Minneapolis each lost one company, while San Francisco gained one.

Rent Performance Varies Notably Across Mountains/Desert Markets

2025-04-21T16:37:02-05:00

The performance spectrum across the Mountains/Desert region has been vast recently. When looking at rent change on a month-over-month, year-to-date and year-over-year basis, larger markets like Phoenix and Las Vegas stand out with deep year-over-year rent cuts. Prices came down 4.1% in the past year in Phoenix and dropped by 3.5% in Las Vegas. Those were the worst cuts among the nation’s largest 50 apartment markets. Smaller Mountains/Desert region markets Reno and Boise are logging deep cuts as well, with annual declines closer to the 3% mark. In places like Phoenix, Reno and Boise, sizable new supply volumes have compressed market fundamentals to some degree. Meanwhile, Las Vegas hasn’t seen a lot of new inventory, but is grappling with weaker economic growth. On the other hand, some Mountains/Desert region markets logged significant rent growth in the past year. Albuquerque rents registered a gain of 6.1% in the past year, while Fort Collins logged a 5.9% increase. Boulder and Denver recorded respectable growth around 2% to 3% in the past year, but both of these markets have seen notable progress year-to-date in 2023, making up for some losses seen at the end of 2022.

Student Housing Performance Remains Historically Strong in May

2026-03-04T06:52:49-06:00

Strong student housing performance persisted into May, with just three months remaining in the Fall 2023 pre-lease season. As of May, 80.1% of beds at the core 175 universities tracked by RealPage had been leased for the Fall 2023 school year – the highest May reading on record, but not by much. May 2022’s pre-lease rate hit 79.5%. A typical pre-COVID May reading hovered around 70%. Three months remain to lease the final one-fifth of vacant purpose-built student housing beds across the RealPage 175. Though it’s unlikely that August’s final pre-lease rate will reach 100%, clearing the effectively full watermark of 90% seems inevitable. In 2022, the final pre-lease rate reached 95.7%, the highest reading on record. @include('site.elements.media.image', ['fileId' => 15038, 'attributes' => ['border' => '0']]) Across the RealPage 175, average effective asking rent change for May 2023 came in at 8.8% in May, using a weighted average. That rate is still head-and-shoulders above the long-term average for annual rent growth of just 2.2%. As usual, the strongest performance for both pre-lease occupancy and rent growth was seen in the pedestrian cohort of properties within a half mile of campus. The same handful of campuses again claim the highest annual rent growth in May, led by a stunning 21.5% hike at the University of Arkansas. Also claiming annual rent growth above 15% were Arizona State, Baylor, Purdue, University of Tennessee, University of Miami and College of Charleston. The vast majority of campuses (82%) claimed annual rent growth above the 10-year average of 2.2%. Only four campuses reported annual rent cuts as of May.

Madison is the Nation’s Second Strongest Apartment Market

2026-03-04T06:52:49-06:00

Madison, WI remains one of the nation’s strongest apartment markets. While fundamentals in many U.S. markets have softened recently, Madison is going strong. This small Midwest apartment market with roughly 76,400 existing units, which is a one-hour drive from Milwaukee and a two-hour drive from Chicago, has continued to maintain tight occupancy and stellar rent growth. @include('site.elements.media.image', ['fileId' => 14911, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Madison almost always has one of the nation's tightest occupancy rates. In the past five-years, occupancy has averaged 97.9%. In May 2023, Madison recorded strong apartment occupancy of 98%, the nation’s second-highest rate behind only Youngstown-Warren-Boardman, OH-PA (99.2%), according to data from RealPage Market Analytics. While down 70 basis points (bps) year-over-year, that reading was well above the national norm of 94.7% and above Madison’s pre-pandemic average of 97.5% from 2015 to 2019. In addition, Madison’s recent occupancy rate was 100 bps above the Milwaukee average and 250 bps above the Chicago norm. @include('site.elements.media.image', ['fileId' => 14910, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) All of Madison’s product classes recorded occupancy around 97% to 99%, with Class C stock taking the lead at 99.1%. Meanwhile, Class B product was 98% occupied, while Class A product trailed with a rate of 96.7%. Occupancy among Madison’s three submarkets was tightly clustered around 98%, with the tightest reading in West Madison (98.2%). Despite elevated supply volumes, absorption remains solid, and operators are finally raising rents at an aggressive pace. As of May 2023, annual rent growth in Madison clocked in at 10.3%, the second-biggest increase among the nation’s core 150 markets, behind Midland/Odessa (17%). In addition, Madison’s annual rent growth performance was well ahead of its pre-pandemic average of 2.2% from 2...

Cape Coral-Fort Myers Suffers Nation’s Worst Revenue Decline in May

2025-01-22T03:13:38-06:00

After logging some of the strongest fundamentals nationwide just a couple years ago, the small apartment market of Cape Coral-Fort Myers is now seeing revenues decline. While revenues are still up year-over-year, monthly declines have become a regular pattern since March in this Gulf Coast market with a little over 50,000 units in existing stock. In the month of May, revenues came down by 2.5%, the worst decline among the largest 150 apartment markets nationwide, according to data from RealPage Market Analytics. The recent decline hasn’t been able to completely wipe out previous progress, however, as revenues in Cape Coral/Fort Myers are still up 1.9% on an annual basis, a pace that remains well ahead of the U.S. norm of 0.2%. Driving the most recent decline, effective asking rents were down 1.6% during the month of May, though prices remain at historic highs above $2,000. On the occupancy side of revenues, rates were down 90 basis points in May, taking occupancy to 93.5%. Nearby markets are also seeing decline in monthly revenues. Naples-Immokalee-Marco Island saw the nation’s second worst decrease at 1.9%, while North Port-Sarasota-Bradenton lost 1.1% for the month.

U.S. Inflation at Lowest Level in Over Two Years

2025-01-22T03:13:38-06:00

The cost of goods and services for U.S. consumers continued to cool in May, easing for the 11th consecutive month amid higher interest rates imposed by the Fed. Consumer price increases are retreating from decade highs, but a strong labor market and resilient consumer spending have continued to put upward pressure on prices. The Consumer Price Index (CPI) for All Urban Consumers, a measure of price changes commonly referred to as the inflation rate, registered at 4% in the year-ending May 2023, the lowest level since March 2021, according to the Bureau of Labor Statistics. That was slightly below economists’ expectations of 4.1% and well below April’s 4.9% annual gain. In addition, inflation has cooled considerably since reaching a peak of 9.1% last June, which was the biggest year-over-year jump in prices since November 1981. Still, inflation has been well above the Fed’s target rate of 2% annually – the pre-pandemic norm. Excluding volatile food and energy prices, the core CPI increased 5.3% during the year-ending May, down from the 5.5% annual increase in April. Looking at other indexes, shelter, which accounts for about one-third of the total CPI index, saw an 8% year-over-year price surge in May, still registering as one of the biggest annual gains in the past 40 years. Meanwhile, the cost of food was up 6.7% over the past year. And new vehicles posted an annual price increase of 4.7%. Contributing to the lower inflation rate, the cost of energy dropped 11.7% year-over-year in May, with the cost of gasoline (-19.7%) having a big impact on that decline. The price of used cars and trucks (-4.2%) was also down on an annual basis. Airline fares, which saw huge price jumps in 2022 through early 2023, fell 13.4% in the year-ending May.

Student Housing Rent Growth in Double Digits at Key Schools

2026-03-04T06:52:49-06:00

Though the U.S. average effective asking rent change for May 2023 came in at 8.8%, campuses achieving double digit percent rent change can be found across the country (of note, just four campuses have seen year-over-year rent cuts). @include('site.elements.media.image', ['fileId' => 14820, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) In addition to the top 15 campuses for Fall 2023 year-over-year rent change, an additional 16 schools are achieving growth rates of greater than 10%. And comparing the suite of RealPage175 campuses to the 10-year average annual rent change (2.2%), some 82% of the nation’s campuses are achieving Fall 2023 greater than that 10-year average. The recent strength of the student sector has been quite impressive considering the degree to which conventional market rent growth has eased. Though annual rent change for conventional multifamily housing (2.3% as of May 2023) isn’t necessarily out of line with historic norms, it was just 12 months prior that growth rates were nearly 15%. Conversely, student housing has seen acceleration from May 2022 (5.6%) to May 2023 (8.8%). Comparing local growth rates between purpose-built student housing and conventional growth within the university home markets shows a similarly stark difference. @include('site.elements.media.image', ['fileId' => 14821, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Across 150 qualifying campuses where their home metro had enough conventional data to report, two-thirds had purpose-built growth rates greater than that of their home metro. And only 25 campuses saw conventional growth rates trailing their home metro area’s conventional housing stock by more than 200 basis points. In the tranche with the largest degree of outperformance (areas in which local purpose-built stock is achieving at least an 8% rent growth premium versus conventional housing in its home metro area) includes an interesting mix of campuses....

Four Apartment Markets with All-Time High Inventory Growth

2026-03-04T06:52:49-06:00

The U.S. apartment market has seen significant construction activity in recent years, and inventory growth is at an all-time high for some key markets. Among the nation’s 50 largest apartment markets, 10 saw inventory growth of 3% or more in the year-ending 1st quarter 2023, according to data from RealPage Market Analytics. Among those, four markets stood out, with those inventory growth rates marking all-time highs. Of those four markets, two were in Florida. @include('site.elements.media.image', ['fileId' => 14707, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Jacksonville Apartment developers completed 6,952 units in the past year in Jacksonville, which resulted in a net inventory increase of 5.5%. This was an all-time high growth rate for the market and the second biggest increase nationwide. While one other apartment market logged faster growth, Nashville’s gain of 6% was not an all-time high, as that market saw a bigger annual inventory growth rate of 6.7% in 3rd quarter 2017. Jacksonville’s apartment construction pace has significantly increased in recent years. Ten years ago, in early 2013, this market – located along Florida’s Atlantic Coast – was growing by an annual rate of just 0.4%. Over the past five years, annual inventory growth has averaged at a much stronger 3%. Accounting for over half of Jacksonville’s completion volumes in the past year were just two submarkets – Mandarin and Westside. Both of these submarkets also logged all-time high inventory growth rates in the year-ending 1st quarter. The Mandarin apartment base jumped by 19.9%, the second largest annual increase among all submarkets nationwide. The Westside increase was more modest in comparison, though still significant at 8.8%. Tampa Located on Florida’s Gulf Coast, Tampa logged an all-time high inventory growth rate of 3.2% in the year-ending 1st quarter, with a delivery of 8,665 units, also a record for the market. While this market hasn’t seen quite...

Atlanta Rent Collections Trail Most U.S. Markets

2025-04-21T16:38:57-05:00

Atlanta apartment rent collections have paced well behind the U.S. average in recent months. In March 2023, about 93% of billed rent was collected in the Atlanta apartment market. That was one of the lowest in the country, topping only New York at 86.9%. Other markets to see collections at or below 94.4% in March included Baltimore and California locales Oakland, Los Angeles and Sacramento. One thing that makes Atlanta stand out in this crowd is that it’s a Sun Belt market. Most other Sun Belt peers are doing much better for this measure. A trailing performance, however, is not out of character for Atlanta. Looking at previous apartment market slowdowns such as the Great Recession, Atlanta does tend to be more sensitive to decline that other Sun Belt markets like Dallas.

Apartment Leasing Gains Momentum in May as Rent Growth Cools

2026-03-04T06:52:49-06:00

Apartment leasing continues to accelerate following the big slowdown in the second half of 2022. Leasing momentum is returning as inflation – including rent growth – continues to moderate. So far in 2023, apartment demand is nipping at the heels of mounting new supply levels. That’s in line with our expectations going into the year that leasing would improve as inflation cools a bit. But the bigger challenge awaits in the second half of 2023 and into 2024, when completions ascend to the highest level since the 1980s. U.S. apartment occupancy came in at 94.7% as of May 2023, matching April’s number and coming in line with long-term norms. More importantly, occupancy rates have held very steady through 2023 year-to-date. That’s a marked change from last year, when occupancy dropped 2.6 percentage points after hitting a multi-decade high of 97.6% in February 2022. @include('site.elements.media.image', ['fileId' => 14886, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) RealPage’s view going into 2023 was that demand would improve as inflation cooled and consumer confidence improved, helping unleash housing demand that didn’t materialize in 2022 despite big job gains. So far, that story is playing out. Additionally, renter retention rates appear to be stabilizing, as well, following sharp declines off record peaks early last year. In May, 52.3% of apartment renters with expiring leases signed renewals. That’s nearly 2 percentage points above the pre-COVID average for the month of May, but well below the peak set one year ago at 56.9%. The demand rebound and stop-the-bleeding in occupancy comes as property managers increasingly focus on filling units and retaining residents – which came easily in 2021 and early 2022 when occupancy and retention hit record highs. But it’s harder now as supply increases, and operators have focused on customer service and automation to improve the resident experience. Operators responded to slowing demand in...

Charleston Leads Nation in 10-Year Inventory Growth

2025-01-22T03:13:38-06:00

Over the past 10 years, Charleston’s existing apartment base grew by more than 60%, or an average of about 6% each year. That was by far the fastest expansion pace among the 150 core markets tracked by RealPage Market Analytics. More recently, Charleston’s inventory grew 4.4% in the year-ending 1st quarter 2023, ranking #12 among the nation’s core 150 markets. This coastal South Carolina market now has roughly 71,000 existing units. Mounting supply volumes have had little effect on the market until recently. Over the past year, Charleston has seen rent growth and occupancy ease from record highs achieved in 2021. Occupancy in Charleston has fallen 320 basis points since September 2021 to just 93.7% in May 2023. That recent reading was below the U.S. norm (94.7%) and slightly under the market’s average of 94.1% in the five years leading up to the pandemic (2015-2019). Meanwhile, effective asking rents in Charleston climbed 6% in the year-ending May 2023, a pace that was more than twice the national average (2.3%). Although that recent rent increase was well below the peak of 21.5% from November 2021, it was well above the market’s pre-pandemic five-year norm of 3.5%. Annual rent growth in Charleston has now exceeded the national average for three years. New supply will continue to test Charleston’s apartment market fundamentals. In the year-ending 1st quarter 2024, the market is expected to grow another 4.6% with the addition of nearly 3,300 units.

Purpose-Built Student Housing Rent Growth Outperforms Conventional Sector

2026-03-04T06:52:49-06:00

While student housing rent growth has consistently underperformed that of conventional multifamily housing over the past decade, there has been a noteworthy shift in recent months. Purpose-built student housing began to grow prices at a faster pace than the conventional sector, marking the first time in which purpose-built has outperformed conventional multifamily in a non-contractionary period. Student housing has long been touted as a stable sector. Historic data supports that idea as well. Over the past 120 observed months, annual rent change has only dipped negative for a total of six months versus a total of 12 months for conventional multifamily housing, according to data from RealPage Market Analytics. Still, fundamental economics suggests that stability comes with a price. And in the student housing space, that price has – historically speaking – been limited upside growth as well. @include('site.elements.media.image', ['fileId' => 14809, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '326']]) A comparison of 10-year average effective asking rent change for conventional multifamily housing shows the market-rate sector tends to outperform student housing by a considerable margin. That’s primarily due to growth years in which conventional multifamily housing averaged year-over-year rent growth of about 5%. Student housing meanwhile averages roughly half of the conventional space. Lastly, student competitive housing – defined as conventional market-rate housing located within three miles of a campus boundary – skews toward conventional growth rates but underperforms its larger counterpart. But in years of contraction, purpose-built student housing holds up quite well against recessionary pressures. Months in which annualized rent change has dipped negative in the space have averaged just 0.2% contraction or effectively holding flat. Conventional meanwhile has averaged cuts of 1.1% in months where annualized rent change dipped negative (al...

U.S. Job Growth Accelerates in May

2026-03-04T06:52:49-06:00

Job growth in the U.S. continued to accelerate in May amid recent layoffs in the technology industry, stress in the banking system, and historic interest rate hikes. Despite rising interest rates, the economy is not cooling nearly as fast as the Fed would desire. The Fed has imposed 10 rate hikes since March 2022 which has taken the federal funds rate to a 16-year high of more than 5%. The pace of hiring is continuing to put upward pressure on wages and inflation, but pay increases are falling short of rising prices. While the labor market outlook is uncertain, job growth remains robust. There could be warning signs on the horizon, as unemployment jumped at one of the fastest paces since early in the pandemic, and yet, the rate remains among historically low levels. @include('site.elements.media.image', ['fileId' => 14756, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Employers’ steady demand for labor added roughly 339,000 employees to payrolls in May 2023, according to the Bureau of Labor Statistics (BLS). That was the strongest month-over-month gain since January 2023. The nation’s recent job additions were well ahead of economist’s projections (180,000 jobs) and well above April’s gain of 294,000 jobs. @include('site.elements.media.image', ['fileId' => 14755, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) While recent job gains are slightly below the monthly average of around 399,000 jobs added in 2022, employers are continuing to hire more workers than they did prior to the pandemic. From 2015 to 2019, the U.S. economy added an average of roughly 190,000 jobs each month. On an annual basis, the nation gained nearly 4.1 million jobs in May 2023. Although down from the annual gains recorded throughout much of 2021 and 2022, that was well above the average of around 2.4 million jobs added annually from 2015 to 2019. Upward revisions to March 2023 data showed 52,000 more jobs were added than previously...

Sun Belt Dominates List of High Apartment Demand Markets

2025-01-22T03:13:38-06:00

For the past three years, the Sun Belt markets have dominated for apartment demand. Dallas/Fort Worth led with the most demand, absorbing 60,377 units between early 2020 and early 2023, according to data from RealPage Market Analytics. Another big Texas market, Houston also ranked as an apartment demand winner, absorbing 45,126 units in the past three years, while demand was solid at around 30,000 units in Newark, Austin and Washington, DC. Among the largest 50 apartment markets, five logged an occupied unit increase of more than 10% in the three-year time frame. Not surprisingly, Nashville and Austin saw the biggest boosts around 13%. Charlotte and Jacksonville logged upturns around 11%, while Salt Lake City logged occupied unit growth of 10.2%. Of the largest 50 apartment markets, only Pittsburgh saw a loss of absorption in the past three years, logging 286 net move-outs, pulling the occupied unit count down by 0.2%.

Five Downtown Office-to-Apartment Conversions

2026-03-04T06:52:49-06:00

As office vacancies rise, developers are targeting more downtown office buildings for conversion into residences. Office buildings in central business districts that have been mostly vacant since the pandemic might be obsolete as Class B or C offices, yet still have new life as a potential apartment residence. In addition, it is sometimes cheaper and quicker to convert office skyscrapers into apartments than to build a new, luxury apartment tower from the ground up. Conversions are typically 15% to 20% less expensive than new apartment buildings and with faster completion times, according to NAIOP. To address a shortage of housing, especially affordable housing, some major markets across the country are offering tax breaks to developers to incentivize these conversions with a stipulation that a certain percentage of apartments be set aside at below-market prices. Here’s a look at five downtown office conversions that are planned or under construction. @include('site.elements.media.image', ['fileId' => 14694, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) 25 Water Street (4 New York Plaza) in New York What is being touted as the largest office-to-residential conversion in the U.S. is underway in New York’s Financial District. Located at the southernmost tip of Manhattan at 25 Water St., the project will create 1,300 new apartments. The Brutalist-style, 22-story, 1.1 million-square-foot office tower was completed in 1968 and previously housed the National Enquirer, the Daily News and JPMorgan Chase. The new owners, GFP Real Estate, Metro Loft Management and Rockwood Capital, plan to invest $535 million to redevelop the building, which they purchased for $251 million in late 2022. Plans for the conversion include adding 10 stories to the 22-story structure, plus expanding windows and replacing the brown brick façade. Amenities will include a basketball court, a steam room and sauna, indoor and outdoor pools and sports simulators. A roofto...

Albuquerque Rent Growth Doubles National Norm

2025-01-22T03:13:38-06:00

While apartment rent growth in Albuquerque has come down from 2021 peaks, rates continue to outpace the national norm. Average effective asking rents in the New Mexico market were up 7.2% year-over-year as of April, which was more than double the 3.2% increase in the U.S. overall, according to data from RealPage Market Analytics. Just five years ago, apartment prices in Albuquerque averaged closer to $800, or less than $1 per square foot. As of April 2023, that rate has increased to $1,265 per month, or $1.53 per square foot. For comparison, rents in nearby Tucson are similar at $1,196 per month, or $1.55 per square foot, while Phoenix prices go for a bit more at $1,614 per month, or $1.86 per square foot. Albuquerque is the smallest of these three markets, with an existing unit count of around 56,500 units. Over that five-year time frame, apartment deliveries in Albuquerque have been relatively limited, averaging roughly 300 units annually. Demand has also averaged at 300 units annually, though that does include some annual net move-outs that started in 2022 and have continued into 2023.

U.S. Home Prices Accelerate, Rising for Second Consecutive Month

2025-01-22T03:13:38-06:00

U.S. home prices have now increased for two consecutive months, ending a seven-month streak of month-over-month declines. Home prices were up 1.3% from February to March, according to the S&P CoreLogic Case-Shiller U.S. National Home Price Index, which measures average home prices across the nation. While that was the second month in a row that prices have increased, the annual rate of acceleration has slowed over the past 11 months and is now at the lowest level since May 2012. Home prices were up only 0.7% year-over-year in March 2023, down from the 2.1% annual jump in February 2023. Looking at more granular results, the S&P CoreLogic Case-Shiller 20-City Composite Index, which tracks prices in the 20 largest metros, posted a 1.5% month-over-month gain, while the annual change went from a gain of 0.4% in February to a decline of 1.1% in March. In March, all 20 cities in the index reported month-over-month price increases. The largest monthly increase was in San Francisco (3%), followed by San Diego (2.5%) and Detroit (2.2%). On an annual basis, 10 of the 20 metro areas recorded lower prices, with the largest pull backs in Seattle (-12.4%) and San Francisco (-11.2%). The nation’s biggest annual hikes were led by South region markets Miami (7.7%), Tampa (4.8%), Charlotte (4.7%) and Atlanta (4.5%).

Surging Class A Rents in Several Sun Belt Markets

2026-03-04T06:52:49-06:00

Across the U.S. apartment market, Class A apartment rents are growing a bit faster than the national norm. In several Sun Belt markets, however, that rate of outperformance in the Class A space is considerably stronger. In the year-ending April 2023, apartment rents grew 3.2% across the nation’s 150 largest apartment markets, according to data from RealPage Market Analytics. Class A rents grew 3.9% in the year-ending April 2023, marking an outperformance of about 70 basis points (bps). However, in some Sun Belt markets – particularly in Florida – Class A rents were growing twice as fast as the market average as of April.@include('site.elements.media.image', ['fileId' => 14635, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) West Palm Beach marks the Sun Belt’s most extreme example of Class A rent growth outperforming the market average. As of April, rents across West Palm Beach grew just 2% on an annual basis, well below the national norm of 3.2%. In that same time period, Class A rents swelled 5.4% in West Palm Beach, marking a 340-bps delta above the market average. Class A rents in Tampa climbed 280 bps higher than the market average of 1.7% in the year-ending April 2023. Meanwhile, Class A rents in Jacksonville grew at an annual rate of 4.5% in April, easily more than double the market average for annual market rent growth of just 0.7%. Three other Florida markets also reported strong Class A rent growth well ahead of the market average, including Fort Lauderdale, Orlando and Miami. The Carolinas trio of Raleigh/Durham, Charlotte and Greensboro/Winston-Salem all claim Class A rent growth well above their respective market averages. Class A rent growth in Atlanta (2.5% YOY) easily bests the market average of just 0.9% in the year-ending April. In only one Texas market – Houston – Class A rent growth outperformed the market norm more significantly than the national average. In Fort Worth, San Antonio and Austin, Class A rent change...

Multifamily Permitting Appears to Have Peaked for This Cycle

2026-03-04T06:52:49-06:00

The seasonally adjusted annual rate for multifamily permitting has been declining since peaking at around 700,000 units in 2022. According to the U.S. Census Bureau’s monthly report, the annualized rate of multifamily permitting was 502,000 units in April 2023, down 9.7% from March and 23% from last April. Multifamily permitting had been on an upward trajectory since 2021, averaging about 590,000 units since the end of the pandemic. That was well above the annual average SAAR of about 440,000 units from 2015 to 2020. Multifamily starts have seen a similar pattern, with starts averaging 375,000 units from 2015 to 2020 before jumping to an annual average pace of about 500,000 units since. In April, the annual rate for multifamily starts was 542,000 units, up 5.2% from last month but down 11.7% year-over-year. @include('site.elements.media.image', ['fileId' => 14616, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Conversely, single-family permitting seems to have “bottomed out” after the severe slowdown caused by higher interest rates and tighter lending practices. The annualized rate for single-family permitting peaked at almost 1.4 million units in January 2021 and hit its nadir at 748,000 units in December 2022. April’s annualized rate for single-family permitting was 855,000 units, up 3.1% from March’s pace but still down 21.2% from last year. Single-family starts were up 1.6% in April, to 846,000 units. Still, that was down 28.1% from last April’s annual rate. Single-family permitting and starts mirror each other with only a slight lag for starts. Multifamily completions fell 17.4% from March to 400,000 units but are up 24.2% from last April’s completion rate. Single-family completions were down 6.5% in April with the annual rate reaching 971,000 units, down 5.2% for the year. The number of multifamily units authorized but not started decreased 6.4% for the month to 147,000 units, up 11.4% from one year ago. The ratio of multifam...

U.S. GDP Grows Faster Than Expected in 1Q

2025-01-22T03:13:38-06:00

The U.S. economy grew faster in the first three months of the year than previously estimated. According to the second estimate for real gross domestic product (GDP) recently released by the Bureau of Economic Analysis, real GDP grew at an annual rate of 1.3% in 1st quarter 2023. That was revised up from the previous estimate of 1.1%. While that recent estimate was above expectations (1.1%), it was below the annualized expansion rates of 3.2% and 2.6% in 3rd quarter 2022 and 4th quarter 2022, respectively. The updated estimate for 1st quarter real GDP primarily reflected an upward revision to private inventory investment, though that measure remained negative. The overall increase also reflected increases in consumer spending, exports, government spending and nonresidential fixed investment. Those increases were partly offset by decreases in private inventory investment and residential fixed investment. A third and final estimate for 1st quarter GDP, which will be based on more complete source data, will be released on June 29th.

Rent Growth in Louisville Outpaces the National Average

2025-01-22T03:13:38-06:00

The Louisville/Jefferson County, KY-IN apartment market has historically been characterized as a relatively stable market with limited downside risk. Over the past nine months, rent growth in the market has exceeded the national norm, after lagging U.S. averages for much of the five-years leading up to the pandemic. This mid-sized South region market, with a population of just over 1.28 million and nearly 97,000 apartment units, recorded a 6.2% increase in effective asking rents during the year-ending April 2023. According to data from RealPage Market Analytics, that rent growth pace was nearly twice the U.S. average (3.2%) and far above the market’s pre-pandemic average annual growth pace from 2015 to 2019 (2.5%). Even with the recent price hikes, Louisville remains a relatively affordable market with effective asking rents of $1,181 per month as of April, a rate that came in $619 below the national average. Meanwhile, Louisville’s April 2023 occupancy rate registered at 94.7%, matching the U.S. norm. Though down 250 basis points year-over-year, occcupany remains essentially in line with the market’s long-term norm of 94.5%.

Top Markets See Employment Gains Slow Sharply

2026-03-04T06:52:49-06:00

Annual employment gains in most of the nation’s top markets have cooled significantly compared to last month’s annual gains, according to the latest data release from the Bureau of Labor Statistics (BLS). The total number of jobs gained in the top 10 markets RealPage tracks for the year-ending April was about 128,000 jobs fewer than last month (a decline of 11.5% from March). Additionally, five of the top markets saw a decrease in new jobs averaging -19,300, and Washington, DC fell out of the top 10 from last month with a slowing of 18,000 jobs from March’s annual gain. Despite weaker annual gains compared to last month, actual month-over-month employment levels increased in all top 10 markets as seasonal hiring continued. However, these month-over-month comparisons of not seasonally adjusted labor data from the BLS should be analyzed with caution. @include('site.elements.media.image', ['fileId' => 14581, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Nine of last month’s top 10 markets returned to this month’s list with the first four remaining in place and a few other markets changing rankings. New York continues to lead the nation in annual gains with 209,600 new jobs for the year-ending April, down about 20,000 jobs from last month and 262,600 less than last year (although, the economy was still in recovery mode last year). Dallas returned at the #2 spot with an annual gain of 126,700 jobs, 75,500 jobs fewer than last year and 17,100 less than March’s annual total. Houston remained in the #3 spot, gaining 112,600 jobs for the year, down 77,000 from last April and almost 30,000 less than last month. The fourth spot was once again held by Los Angeles, which added 106,200 jobs but slowed by more than 183,000 jobs from last year, despite only a minor decrease from last month. Atlanta fell two spots to #7 in April with an annual employment gain of 76,800 jobs. That was 105,000 fewer than last year and 14,100 less than last month. Bos...

Texas Neighborhoods Where Apartment Inventory Has Doubled in the Past Decade

2026-03-04T06:52:49-06:00

New apartment supply across the U.S. and Texas is booming. But there are areas that are on steroids. Some of the nation’s most significant apartment development activity has taken place in Texas and, of the 23 U.S. submarkets that have at least doubled in size over the past 10 years, more than half were in major Texas markets. Across Texas, multifamily developers have delivered over 550,000 new apartment units in the last decade, equaling an expansion rate of 28.7%, according to data from RealPage Market Analytics. In several submarkets in Texas, however, that rate of inventory growth was far more prolific. AUSTIN Among the nation’s largest 50 apartment markets, Austin was the fastest growing in the last decade. The market added more than 96,000 units, on net, over the past 10 years, growing its inventory base 50%, according to data from RealPage Market Analytics. Of the 14 fastest-growing Texas submarkets, three were in Austin. Much of Austin’s growth has occurred along the US-183 corridor north of Austin, with Cedar Park capturing nearly 12% of the market’s new supply over the past decade. Meanwhile, East Austin captured nearly 13% of Austin deliveries, while neighboring Southeast Austin captured nearly 6% of new development. @include('site.elements.media.image', ['fileId' => 14484, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '332']]) Suburban Cedar Park had a little less than 7,400 apartments at the beginning of 2013 and by early 2023, this area had more than 18,500 units, after growing by 151.6%. Located roughly 16 miles northwest of Austin, Cedar Park is one of the only major suburban areas in the market with a commuter rail line, Capital Metro’s first and only rail line connecting to downtown Austin. Additionally, the area boasts its own concentration of employers. Drawn by employment options, people have been flocking to this area. The U.S. Census Bureau estimates that the Cedar Park population grew by roughly 16,000 people, or 26%,...

Sacramento Apartment Fundamentals Cooling Rapidly

2025-01-22T03:13:38-06:00

Throughout the pandemic, Sacramento apartment fundamentals surged as work-from-anywhere residents seeking a lower cost of living flocked to the market from nearby, pricier markets. In late 2022 and early 2023, however, Sacramento’s fundamentals softened considerably, according to data from RealPage Market Analytics. As of April, Sacramento operators cut rents 1.2% on an annual basis – the third worst reading among the nation’s 50 largest apartment markets, ahead of only Phoenix and Las Vegas. That compares to annual effective rent growth of 3.2% on a nationwide basis in April. Meanwhile, after easily outpacing the national norm both before and throughout the pandemic, apartment occupancy in Sacramento now sits just below the national norm. As of April, Sacramento occupancy clocked in at 94.5%, compared to 94.7% nationwide. That trend is marketwide as occupancy has fallen in every Sacramento submarket, with only Central Sacramento seeing a negligible occupancy cut on an annual basis.

Ranking U.S. Apartment Occupancy by Geographic Region

2025-07-07T08:39:15-05:00

Apartment occupancy performances have varied across the nation’s four geographic regions recently. Apartment living varies across the Northeast, West, South and Midwest, and each region has grappled with fluctuating demand patterns over the past few years. Over the next few weeks, RealPage Market Analytics will be exploring these regions, and the market performances of each, in a series of blog posts. Read the first in this series, covering apartment demand by region. In 1st quarter 2023, the U.S. apartment market overall welcomed the return of apartment demand, after posting negative absorption for three consecutive quarters. Still, one quarter of rebounding demand wasn’t enough to pull the nation out from under the weight of net move-outs on an annual basis. Meanwhile, apartment supply continues at record levels. This disparity led to occupancy decline of 270 basis points (bps) in the past year, taking U.S. apartment occupancy down to 94.8%, well below the nation’s five-year average of 95.9%. Among the four regions, the South region experienced the deepest occupancy decline during the past year, falling 330 bps to 94%. The West and the Midwest recorded more mild setbacks of 230 to 270 bps, while the Northeast logged a more modest decline of 180 bps. The South At 94%, 1st quarter occupancy in the South region is the lowest nationwide, after taking a deep dive of 330 bps in the past year. The five-year average for this region is a bit higher at 95.2%. Characterized by warm weather and a lower cost of living, the South region has boasted significant attention in the past few years, driven by job opportunities and population increases. While the South region has been the nation’s apartment demand winner of late as the fast-growing Sun Belt markets continue to add new residents, this is also the region with the most new construction activity – by far. Over 190,000 apartment units were delivered in the South during the past year, and s...

After Pandemic Decline, East Coast Apartment Markets Rebound

2025-04-21T16:33:12-05:00

East Coast apartment markets tend to perform better than much of the U.S. when looking at occupancy rates and effective asking rent growth. As of April 2023, occupancy showings outperformed in all East Coast markets except for three – Baltimore, Richmond and Pittsburgh. For rent growth, all but two – Baltimore and Richmond – outpaced the U.S. norm. Northern New Jersey is the big winner among the East Coast markets, with occupancy of 97% and rent growth of 7.8%. both coming in well ahead of national averages. New York outperforms for both as well, but the occupancy performance stands out in a more pronounced way at 96.9%. While these larger, more expensive apartment markets along the East Coast saw deep decline during the worst setbacks of the pandemic, it’s clear that the remote-friendly working environment didn’t damage their stability. On the other hand, some of the West Coast markets have seen some difficulty triggered by economic headwinds from the tech sector.

Midland/Odessa Logs Nation-Leading Apartment Revenue Growth

2025-04-21T15:28:51-05:00

The Midland/Odessa apartment market claimed the nation’s most impressive revenue growth during the past year. Revenues were up 17.9% in the year-ending April in this market with less than 28,000 apartment units, according to data from RealPage Market Analytics. Most of that increase was on the rent growth side of the equation, as effective asking prices were up 17.2% year-over-year as of April. Meanwhile, occupancy climbed 70 basis points (bps). Both of those annual increases were also nation-leading data points. Inspiring revenue growth, Midland/Odessa ranked in the top 10 nationally for annual apartment demand, absorbing over 1,350 units in the year-ending 1st quarter. Oil prices remain elevated, which could be helping Midland/Odessa – a market that relies on the energy sector to boost its economic base. Over the past few years, with oil prices climbing to historic peaks – and hanging out there for a while – there’s been less bust and more boom than is historically typical. Not all oil dependent markets are doing as well, however. Tulsa, Oklahoma City and Houston saw marginal gains in revenue in the past year, between 0.1% and 0.6%.

Suburban Sun Belt Dominates List of High Growth Submarkets

2026-03-04T06:52:48-06:00

A handful of submarkets across the nation logged ultra high inventory growth rates over 10% in the past year – and suburban Sun Belt submarkets dominate that list. RealPage Market Analytics examined the 706 submarkets within the nation’s 50 largest apartment markets in the country and ranked them based on inventory growth in the year-ending 1st quarter 2023. Among those, 15 submarkets logged inventory increases north of 10%. Not surprisingly, the dominating region on the list was the Sun Belt – the nation’s powerhouse for both supply and demand in recent years as population growth soared in the years since the COVID-19 pandemic. Of course, any discussion on sizable apartment supply volumes would have to include Dallas/Fort Worth. Among the submarkets surveyed, the south suburb of Burleson/Johnson County in Fort Worth saw the most inventory growth, with an all-time high increase of 20.1%. Two other Fort Worth submarkets top the inventory growth list, including North Fort Worth/Keller (13.4%) and South Arlington/Mansfield (12.4%). The only Dallas submarket to make the list was Frisco, with growth of 14.9%. @include('site.elements.media.image', ['fileId' => 14365, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Inventory growth is often coupled with apartment demand. While much of the Dallas/Fort Worth metropolitan area experienced softening apartment demand recently, the northern suburban submarkets of North Fort Worth/Keller and Frisco were leaders for absorption in the past year, offsetting the weakness in some other submarkets across the Metroplex. Overall, Dallas/Fort Worth remains the nation’s construction powerhouse, with more than 74,000 units currently under way – an all-time high. Of those scheduled deliveries, a great deal will be focused on the same submarkets that logged these big increases in the past year. Jacksonville’s Mandarin submarket also logged an all-time high inventory growth rate in the year-ending 1st quarter....

When Apartment Demand Slows, the Nation’s Heartland Shines

2025-04-21T16:36:13-05:00

Midwest apartment markets shine the brightest during downturns. The slow-and-steady nature of these markets doesn’t seem as glamourous when the U.S. overall is experiencing surging fundamentals. But when performance softens in the nation overall, the nation’s heartland stands out in strength and resilience. In 2020, when the nation’s housing market was hit hard by the COVID-19 pandemic, the Midwest outperformed the flailing Gateway markets and stayed relatively in line with the Sun Belt. In 2021, Sun Belt market performance really took off, with new lease trade-out peaking at over 20%, leaving the Midwest to its slow-and-steady pace around the 10% mark. When the Gateway performance bounced back and hit a performance peak near 19% in 2022, the Midwest continued to log a solid – but less flashy – expansion, closer to 16%. In 2023, as moderation has become widespread across the U.S., the Midwest performance has snuck ahead of the Sun Belt and Gateway markets. New leases are now signing for almost 7% more than the previous lease in the Midwest, a few ticks ahead of the Gateway and Sun Belt.

The Five Largest Apartment Transactions in 1st Quarter 2023

2026-03-04T06:52:48-06:00

Investments in U.S. apartments continued to cool in the first three months of 2023 amid the rising cost of debt and economic uncertainty. Though the asset remains an attractive commercial real estate investment, sales have fallen below pre-pandemic levels. @include('site.elements.media.image', ['fileId' => 14319, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '450']]) Nearly 1,200 apartment properties changed hands at a value of $25.4 billion during 1st quarter 2023, according to MSCI Real Capital Analytics. The overall sales volume during the quarter was down 64% year-over-year. This was also well below the 4th quarter 2021 peak, when around 5,200 properties changed hands for $164 billion as the result of pent-up demand following the onset of the pandemic. Recent activity was also well below the $42 billion quarterly average during the five years leading up to the pandemic. The average price per unit has also fallen, registering at $202,504 in 1st quarter. While down 11% year-over-year, that figure has remained above $200,000 for a seventh consecutive quarter. Prior to 2021, unit pricing never exceeded that threshold and averaged $151,000 from 2015 to 2019. Meanwhile, cap rates for transactions in 2023’s 1st quarter were up 40 basis points (bps) year-over-year but remained at historic lows, averaging 5.1%. In addition, multifamily cap rates during 1st quarter remained the lowest among major property types. @include('site.elements.media.image', ['fileId' => 14320, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) In the year-ending 1st quarter 2023, transactions totaled more than $255 billion with around 9,300 properties trading hands. Looking back over the past few years, sales dipped in calendar 2020 due to the pandemic, when about 7,200 apartment communities were sold for roughly $148 billion. That was well below the volume from 2019, when 9,000 properties traded hands for $195 billion. In 2021, transactions jumped ba...

Expect Another Ultra-Full Occupancy Rate in Student Housing for Fall 2023

2026-03-04T06:52:48-06:00

With only a couple months left in the Fall 2023 pre-lease season, the theme of ultra-strong performance is already pretty clear. In April, pre-lease occupancy hit yet another all-time high and annual rent growth hovered near its best-ever rate, just shy of 10%. As of April, 73.4% of beds at the core 175 universities tracked by RealPage had been leased for the Fall 2023 school year – the highest April reading on record, but by a lower margin than previous monthly bests. This late in the pre-lease season, there simply aren’t many beds left to be leased, so month-over-month hikes in pre-leasing tend to get narrower. April 2022’s reading of 70.9% is now the second-best April reading on record. @include('site.elements.media.image', ['fileId' => 14293, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Similarly, average effective rent growth also continues at record levels. Rates increased 9.6% in the year-ending April – a mere 10 basis points (bps) lower than March’s annual reading. Overall, Fall 2023’s rent growth easily claims the highest rates on record, hovering above 9% for five consecutive months. Across the distance spectrum, pedestrian properties (within a half mile of campus) boast the strongest pre-lease occupancy rates and annual rent growth at 75.6% and 9.8%, respectively. Properties more than a mile from campus posted the second-best readings with pre-lease occupancy of 71.4% and annual rent change of 9.5% in April. That middle distance of properties (within a half mile to one mile of campus) were the relative underperformers, claiming the lowest pre-lease occupancy (67.8%) and rent growth (8.9%). Still, it’s hard to call those readings an underperformance as both still rank as historically high rates. From a university perspective, only a handful of schools posted low rates of pre-lease occupancy in April, including rates below 50% at a handful of satellite universities such as Alabama at Birmingham, Tennessee at Chattanooga a...

Mortgage Rates at Lowest Level in Four Weeks

2025-01-22T03:13:38-06:00

While the average long-term U.S. mortgage rate inched down for the second consecutive week – reaching its lowest level in four weeks – rates have remained at roughly 5% or higher during the past year. This stretch of rates consistently above 5% hasn’t happened since 2010. In the week-ending May 11, the benchmark 30-year mortgage interest rate averaged 6.35%, based on applications submitted to Freddie Mac from lenders across the country. That rate was down from 6.39% the previous week and well below the two-decade high of 7.08% recorded in fall 2022. Still, the average long-term U.S. mortgage rate remains above the year-earlier rate of 5.3% and well above the historic low of 2.65% from early January 2021. For perspective, during the five years leading up to the pandemic (2015-2019), the 30-year fixed-rate mortgage interest rate ranged from 3.41% to 4.94%, averaging 3.99%. However, if you think mortgage interest rates are high now, refer to rates during the 1980s, which ranged from 9.03% to 18.63%. As inflation continues to moderate, mortgage rates are expected to continue to trend down.

Right on Schedule, CPI Finally Shows Rent Growth Cooling

2026-03-04T06:52:48-06:00

If you squint closely enough at the Consumer Price Index’s rent data for April, you’ll notice something critically important: Rent growth (as measured by the CPI) cooled for the first time in two years ... and right on schedule. Several studies have shown a 12-month lag effect between asking rent growth and CPI’s “rent of primary residence” metric. Sure enough, right on schedule, it appears CPI rent growth peaked in March 2023 – exactly 12 months after RealPage asking rent growth data peaked in March 2022. The drop from March to April wasn’t much – from 8.81% to 8.80% – but it’s the direction that is most notable. For context, asking rents showed a similarly miniscule drop from March to April 2022, and since then, it’s plunged precipitously. The same should happen with CPI rents. @include('site.elements.media.image', ['fileId' => 14272, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) This is a big deal for inflation and rate watchers (including apartment investors) because rent is the largest variable in the CPI’s largest category: shelter. Remember: The same rent survey used to estimate rent is also the primary variable used to estimate homeowners’ costs. So while homeowners are weighted more heavily than renters, it’s the same core dataset. The lag effect is widely known among economists and by the Fed. Real-time rents started cooling off as housing demand started waning late last spring. As we’ve been saying for a while: Rent has been a heavy anchor on the CPI, preventing deeper cooling in the official inflation measure. Rent is unique in that – unlike groceries or gas, for example – the CPI does not use current pricing (the asking rent for a new lease) and instead tries to measure the contract rent (which would only change once per year per renter on a 12-month lease). @include('site.elements.media.image', ['fileId' => 14271, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) The good news is that CPI rent...

Inflation Eases for the 10th Consecutive Month

2025-01-22T03:13:38-06:00

The cost of goods and services for U.S. consumers cooled for the 10th consecutive month amid higher interest rates imposed by the Fed to curb inflation. Still, consumer price increases remain at decade highs, as a strong labor market and resilient consumer spending have continued to put upward pressure on prices. The Consumer Price Index (CPI) for All Urban Consumers, a measure of price changes commonly referred to as the inflation rate, was at its the lowest level in two years at 4.9% in the year-ending April 2023, according to the Bureau of Labor Statistics. That was slightly below economists’ expectations of 5% and slightly below March’s 5% annual gain. In addition, inflation has cooled considerably since reaching a peak of 9.1% last June, which was the biggest year-over-year jump in prices since November 1981. Still, inflation has been well above the Fed’s target rate of 2% annually – the pre-pandemic norm. Excluding volatile food and energy prices, the core CPI increased 5.5% during the year-ending April. Looking at other indexes, the cost of food increased 7.7% over the past year. Shelter, which accounts for about one-third of the total CPI index, saw an 8.1% year-over-year price surge in April, one of the biggest annual gains in over the past 40 years. And new vehicles posted a 5.4% price increase over the past year. Contributing to the lower inflation rate, the cost of energy dropped 5.1% year-over-year in April, with the cost of gasoline (-12.2%) having a big impact on that decline. The price of used cars and trucks (-6.6%) was also down on an annual basis.

5 Themes from 1Q23 REIT Earning Calls as Normalcy Reemerges

2025-01-22T03:13:37-06:00

The spring leasing season is upon us. During the latest round of earnings calls, multifamily REIT executives noted positive momentum in 1st quarter 2023 and discussed that may or may not mean for prime leasing season. Here are the top five areas of focus for these REITs as they look toward a possible return to normal in the multifamily industry. 1. New supply will be elevated for the remainder of 2023 through 2024. Anticipated deliveries are not evenly spread throughout the nation, and pockets of heavy supply will exist throughout gateway and Sun Belt markets, as well as in urban and suburban submarkets. This bifurcation will certainly lead to more strategy than has been seen over the last two years, as lease up concessions are expected to have an impact on nearby stabilized properties. While overall concession values and the amount of units offering those concessions doesn’t yet appear to be rising, REIT executives are keeping an eye on these discounts. They anticipate continued demand and supply imbalances in select pockets throughout the U.S. 2. Apartment demand rebounded in 1st quarter 2023. Consistent with RealPage Market Analytics data, apartment REITs noted rebounded apartment demand in 1st quarter 2023, which indicates positive momentum heading into the spring and summer leasing season. Demand was slightly muted by non-pandemic historical norms, but when combined with solid job growth and improving consumer sentiment, it shows the resiliency of the apartment market. REIT executives also reiterated they have not yet seen any indicators of coupling, doubling up or roommates – all of which would indicate some affordability challenges. Rent-to-income ratios remain in the low 20% range, consistent with RealPage data. 3. Migration into the Sun Belt persists but not at pandemic peaks. REIT executives continue to note demographic tailwinds in the Sun Belt. Relative affordability, lower taxes, employment opportunity and weather remain selling points fo...

Florida Markets with Strong 1Q Demand Tallies

2025-04-21T16:34:17-05:00

A handful of Florida markets managed an uptick in demand in 1st quarter 2023, with absorption climbing over 2022 levels. This is an impressive feat, given that these markets have seen notable strength for several years now, inspired by population increases. The Florida markets benefiting from improved demand volumes year-over-year were mostly smaller markets, and included retirement hot spots like Sarasota, Port St. Lucie and Naples. Also included was Lakeland, a smaller, more affordable option to nearby Orlando or Tampa, which both run about $300 more in monthly apartment rents. The panhandle beach town of Pensacola also recorded more demand in the early months of 2023 than in 2022. In fact, the top two improved markets – Sarasota and Lakeland – deserve additional mention, given recent new supply volumes. A handful of markets saw 1st quarter demand effectively match last year’s tallies, including Jacksonville, Tampa, Palm Bay and Ocala. The remaining Florida markets among the largest 150 apartment markets recorded less inspiring results.

U.S. Adds a Surprisingly Strong Number of Jobs in April

2026-03-04T06:52:48-06:00

Job growth in the U.S. unexpectedly accelerated in April despite recent stress in the banking system and historic interest rate hikes. Despite rising interest rates, the economy is not cooling nearly as fast as the Fed would desire. The Fed has imposed 10 rate hikes since March 2022 which has taken the federal funds rate to a 16-year high of more than 5%. Despite efforts by the Fed to curb inflation, the pace of hiring is still putting upward pressure on wages and inflation. And yet, pay increases aren’t keeping up with inflation. While the outlook for labor market is uncertain, job growth remains robust, and unemployment is at historically low levels. @include('site.elements.media.image', ['fileId' => 14186, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Employers’ steady demand for labor added roughly 253,000 employees to payrolls in April 2023, according to the Bureau of Labor Statistics (BLS). That was the strongest month-over-month gain since January 2023. The nation’s recent job additions were well ahead of economist’s projections (180,000 jobs) and well above March’s gain of 165,000 jobs. While recent job gains are below the monthly average of around 399,000 jobs added in 2022, employers are continuing to hire more workers than they did prior to the pandemic. From 2015 to 2019, the U.S. economy added an average of roughly 190,000 jobs each month. On an annual basis, the nation gained roughly 4 million jobs as of April 2023. Although down from the annual gains recorded throughout much of 2021 and 2022, that was well above the average of around 2.4 million jobs added annually from 2015 to 2019. @include('site.elements.media.image', ['fileId' => 14185, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Downward revisions to February 2023 data showed 78,000 fewer jobs were added than previously reported, down to 248,000 jobs. The March 2023 job growth number was also revised down, falling by 71,000 jobs to...

The Latest Challenge Hitting Apartment Owners: Soaring Property Insurance Premiums

2026-03-04T06:52:48-06:00

Pardon the bad analogy, but a “perfect storm” of factors is creating a new headache for apartment owners – soaring property insurance premiums. In some cases, premiums have more than doubled over the last two years due to natural disasters and energy grid issues, combined with soaring replacement costs and property values. And in a handful of markets, the challenges are further exacerbated by insurance carriers exits, leaving property owners with few options. Annualized average insurance premiums for U.S multifamily properties skyrocketed 22% year-over-year through 1st quarter 2023, according to RealPage data. That comes on top of a similarly large increase in the preceding year. It’s even worse in certain markets. Premiums ballooned 46% over the last year in West Palm Beach metro area and by 45% in Houston. And over a two-year period, both are up more than 2x – with annual premiums now averaging more than $1,800 per unit in West Palm Beach and more than $1,100 per unit in Houston. Some property owners are paying far more depending on their location (i.e. proximity to the water), their building type (age, height, sprinklers, etc.) and their scale (owners with larger portfolios can access discounts based on size). Other notable premium increases came across all across Florida (even in interior cities like Orlando), whereas in Texas the spikes were less significant further inland from the Gulf of Mexico. West Coast markets also saw sizable spikes, led by Seattle and Riverside. Across Florida and the Gulf Coast, premiums are impacted by recent storms plus a drop in the number of carriers; and in states like Texas and California, concerns about the energy grid play a role as well – contributing to the wildfires in California and the Texas freeze of 2021. The challenge for apartment property owners is that big spikes in insurance costs (as well as property taxes, which are also up significantly) are deeply sticky. Unlike, say, interest rates, property owners can't...

Atlanta Apartment Rent Growth Stagnates

2025-01-22T03:13:37-06:00

The Atlanta apartment market has undergone one of the deepest rent softenings in the nation, as of March 2023. After hitting record highs just one year ago, effective asking rent growth started to decline significantly at the end of 2022, according to data from RealPage Market Analytics. On a monthly basis, Atlanta rent growth has stagnated, ticking up just 0.1% in March, after no change in February and a slight 0.1% monthly rent cut in January. In March 2023, rent growth cooled to 1.3% year-over-year, returning closer towards pre-pandemic rent change. This was a drastic change from the market’s performance in late 2021 and early 2022, when annual rental growth exceeded 20% for five consecutive months. With rents cooling in Atlanta, annual rent growth ranked as a bottom six performance among the nation’s top 50 markets in March, outperforming only San Francisco, Austin, Sacramento, Las Vegas and Phoenix. Across Atlanta’s asset classes, Class A (2.4%) and Class C (2%) reported modest annual rent growth as of March. Class B product, meanwhile, reported the weakest annual rent growth at just 0.4%.

Reframing 1st Quarter’s Performance Into Historical Perspective

2026-03-04T06:52:48-06:00

With 1st quarter 2023 in the books, it can be a little difficult to get a full gauge of apartment market performance. Encouraging metrics can certainly be found. For one thing, 1st quarter 2023 saw the U.S. record its first positive quarterly absorption figure (19,243 units) since 1st quarter 2022. For another thing, rents grew on a month-over-month basis in February and March, marking the first two-month stretch of rent growth since August 2022. Further, March’s monthly hike of 0.3% was the largest monthly rent increase since August 2022, accoding to data from RealPage Market Analytics. Still, those positives are countered by some weak stats. For instance, 1st quarter 2023 absorption for about 19,000 units was less than the average 1st quarter figure from the past 10 years. In the 2010s decade, 1st quarter absorption averaged nearly 30,000 units – so 2023’s 1st quarter shortfall comes in around two-thirds of the typical figure. Similarly, monthly rent growth in March 2023 was about 40 basis points weaker than the recent average March figure (0.7%). @include('site.elements.media.image', ['fileId' => 14084, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) It seems then that the 1st quarter results come down to a matter of perspective. An optimist may suggest that any positive movement should be seen as a win, while a pessimist can equally point towards relative underperformance in the 1st quarter stats. Regardless of perspective, though, it’s crucial to consider the relatively small weight that 1st quarter stats carry through a full calendar year. While 1st quarter makes up 25% of the calendar year, it makes up only a fraction of total leasing activity. Over the past 10 years, 1st quarter usually accounts for 10% of annual absorption figure. A 20-year view shows that 1st quarter makes up a smaller portion, with only 5% of annual demand happening between January and March. @include('site.elements.media.image', ['fileId' => 14083, 'a...

Rent Growth in This Small Midwest Market Outpaces National Average

2025-01-22T03:13:37-06:00

Rent growth in Wichita, Kansas has outpaced the U.S. norm for the past six consecutive months. This small Midwest market, with a population of around 650,000 and less than 36,300 existing units, recorded a 6% increase in effective asking rents during the year-ending March 2023. According to data from RealPage Market Analytics, that rent growth pace was notably ahead of the U.S. average (3.9%) and far above the market’s pre-pandemic average annual growth pace from 2015 to 2019 (1.3%). However, Wichita didn’t experience the massive rent change swings that most other markets across the country witnessed during the pandemic. In fact, Wichita avoided year-over-year rent cuts and only briefly ventured into double-digit rent growth last year. Despite rent increases of late, Wichita is still a bargain for renters. Effective asking rents in the market averaged $850 in March 2023, making Wichita the most affordable apartment market among RealPage’s core 150 metros. Furthermore, Wichita’s monthly rent was less than half the national average ($1,792). Perhaps driving rent growth in Wichita is the fact that the market has seen very little new supply. Just 32 units came online here in the past year, having a negligible impact on inventory. And over the past five years, Wichita’s inventory increased less than 5%, compared to the national average growth pace of just over 9%. And yet occupancy in Wichita measured 94.1% in March, below the national average of 94.7%. Still, Wichita’s recent occupancy rate was in line with the market’s average rate during the five years leading up to the pandemic.

Phoenix Apartment Demand Shows Signs of Stability

2026-03-04T06:52:48-06:00

Phoenix apartment demand returned in 1st quarter 2023, but the market is still struggling to absorb record new supply volumes. Apartment absorption in Phoenix rebounded in 1st quarter 2023, after three quarters of little to no demand. At 3,234 units, 1st quarter absorption in Phoenix was the highest in the country and helped shift the high supply and soft demand imbalance seen in recent months. However, even with a return to solid demand during the first three months of the year, Phoenix still recorded net move-outs from 288 units in the year-ending 1st quarter 2023. @include('site.elements.media.image', ['fileId' => 14064, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Though demand overall was negative in the past year, some submarkets logged strong absorption. Leading Phoenix with demand for more than 1,000 units in the year-ending 1st quarter were the Avondale/Goodyear/West Glendale (1,125 units) and Central Phoenix (1,118 units) submarkets. These submarkets also ranked for top supply volumes with more than 1,000 units delivered in the year-ending 1st quarter. Avondale/Goodyear/West Glendale saw the addition of 2,439 units, while 1,845 units were delivered in Central Phoenix. Only four other submarkets recorded annual demand for more than 400 units in the Valley of the Sun: Gilbert (801 units), North Scottsdale (471 units), East Mesa (427 units) and Peoria/Sun City/Surprise (406 units). These too proved to be supply leaders with more than 1,000 units delivered. @include('site.elements.media.image', ['fileId' => 14065, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '563']]) Although strengthened in recent months, apartment demand in Phoenix is up against a lot of new supply. A total of 4,345 units delivered here in 2023’s 1st quarter. That supply load outpaced demand by more than 1,000 units. In the past year, deliveries totaled over 16,000 units, increasing Phoenix inventory by 4.1%, an all-time high for the mar...

Where Have Cap Rates Fallen the Most?

2025-01-22T03:13:37-06:00

Apartment cap rates continued to fall over the past year for most of the nation’s largest markets and some of the deepest declines have been in locales that are typically slow-and-steady performers. A total of 31 of the nation’s top 50 markets tracked by RealPage Market Analytics recorded declining cap rates during the year-ending 1st quarter 2023, according to data from Real Capital Analytics. Markets with the steepest drops were spread across the country, with four in the South region, while the other three regions were each represented by two markets. The deepest compression was recorded in Newark-Jersey City, which saw cap rates fall 62 basis points (bps) year-over-year to 4.07%, the eighth-lowest cap rate nationally. Cap rate declines in excess of 30 bps were also recorded in Richmond (-45 bps), New York (-38 bps), Cincinnati (-37 bps) and Greensboro/Winston-Salem (-35 bps). Rounding out the top 10 markets for cap rate compression were Sacramento (-28 bps), Detroit (-28 bps), San Jose (-26 bps), San Antonio and Memphis (both -25 bps). San Jose’s decline took its average annual cap rate to 3.78%, the second-lowest cap rate among the nation’s top 50 markets, behind only Phoenix (3.77%). None of the other top 10 markets for cap rate compression landed among the 10 markets with the lowest cap rates nationally. Despite the cap rate freefall in Cincinnati, Memphis and Detroit, those markets still landed among the markets with the 10 highest cap rates nationally.

Ranking U.S. Apartment Demand by Geographic Region

2025-01-22T03:13:37-06:00

As apartment demand has fluctuated hugely over the past few years, each of the nation’s geographic regions have experienced their own performance patterns. Over the next few weeks, RealPage Market Analytics will be exploring these regions, and the market performances of each in a series of blog posts. In 1st quarter 2023, the U.S. apartment market marked a welcomed return of apartment demand, after posting negative absorption for three consecutive months. Among the four regions, the South logged the most apartment demand in the January to March time period, with absorption for over 18,118 units. The South region has been a demand magnet for years as fast-growing Sun Belt markets allow the region to keep adding both new units and new residents. The West and the Northeast also posted positive absorption for 1,146 to 2,204 units, respectively, in 1st quarter 2023. The Midwest, by contrast, continued to log net move-outs, for 2,225 units. The South As the South claims many of the nation’s hottest Sun Belt markets and about 7.9 million existing apartment units, this region easily claims the strongest demand (and usually supply, too) for apartment units nationwide. When apartment demand peaked in 3rd quarter 2021, the South recorded double the quarterly absorption tallies of the other three regions, absorbing nearly 134,000 units in the July to September time period alone. Then in 2nd quarter 2022, U.S. demand slipped into negative territory, and the South region likewise led in net move-outs, giving back notably more absorption than any other area. In 1st quarter 2023, apartment demand returned to every region. And, again, the South led that rebound. The South is also the region with the most construction activity by far. Over 190,000 units were delivered here during the past year, and another 321,000 are expected to come online in the next year. The Northeast With just over 2.4 million existing apartments, the Northeast is the nation’s small...

Apartment Demand Lags in West Coast Markets

2025-04-21T16:44:29-05:00

While U.S. apartment demand finally turned a corner in 1st quarter, the West Coast region specifically didn’t see as much improvement as the nation overall. Within the West Coast, the Bay Area fared the best, with San Jose logging demand for over 900 units in 1st quarter 2023. San Francisco also registered demand for over 100 units in 1st quarter, while Oakland absorption was negligible. While the Bay Area outperformed relative to regional peers, however, demand here failed to match up to typical 1st quarter absorption patterns. Pacific Northwest markets Portland, Seattle and Tacoma logged essentially no apartment demand in 1st quarter, a particularly disappointing figure for Seattle, where demand typically averages around the 2,000-unit mark in the first three months of the year. Southern California markets dramatically underperformed normal trends, with Los Angeles and Riverside logging negative demand for about 900 units each.

Single-Family Construction Returns as Multifamily Slows

2026-03-04T06:52:48-06:00

The volatile multifamily segment oscillated down from February’s seasonally adjusted annual rates as single-family permits and starts increased, according to the U.S. Census Bureau’s monthly report. Multifamily permitting declined 24.3% in March to 543,000 units from the previous month’s annual rate, while multifamily starts were down 6.7% to 542,000 units. With a large pipeline of new construction already in the works, developers and lenders appear to be pulling back slightly for the time being. On an annual basis, multifamily permitting is down 17.7% but starts are up 59.7% due to the lag between permits and starts. Meanwhile, annualized single-family permitting was up 4.1% from February to 818,000 units but down 29.7% for the year. Single-family starts were up 2.7% from last month to 861,000 units but down 27.7% from last February. That was the second consecutive month-over-month increase in single-family permits and starts. @include('site.elements.media.image', ['fileId' => 13981, 'attributes' => ['border' => '0', 'width' => '980', 'height' => '590']]) Multifamily completions fell 7.1% from February to 484,000 units but are up 59.7% from last March’s completion rate. Single-family completions were up a modest 2.4% in March with the annual rate reaching 1.050 million units, down only 0.2% for the year. The number of multifamily units authorized but not started decreased 3.7% for the month to 157,000 units, up 17.2% from one year ago. The ratio of multifamily units not started to annualized permits moved back to 28.9% from less than 23% last month. Single-family units authorized but not started fell 2.3% to 130,000 units from a revised 133,000 units in February, down 14.5% from last year. With slowing but still elevated permitting, the number of multifamily units under construction (941,000 units) continues to exceed that of single-family (716,000 units) and is up a slight 0.2% from last month. @include('site.elements.media.image', ['fileId' => 13982, 'a...

U.S. Economy Grows Modestly in 1st Quarter 2023

2025-01-22T03:13:37-06:00

The U.S. economy revealed signs of a slowdown in 1st quarter, expanding less than expected as higher interest rates have impacted the housing market and reduced inventories for businesses. According to the advance estimate for real gross domestic product (GDP) recently released by the Bureau of Economic Analysis, real GDP grew at an annual rate of 1.1% in the first three months of 2023. While the U.S. economy is still growing, that recent expansion rate was below the 2% forecast and well below the 3.2% and 2.6% annualized rates recorded in 3rd quarter 2022 and 4th quarter 2022, respectively. The recent increase in real GDP reflected increases in consumer spending, exports, government spending and nonresidential fixed investment. Those increases were partly offset by decreases in private inventory investment and residential fixed investment. The recent GDP estimate will be revised several more times based on more complete source data. The second estimate for 1st quarter GDP will be released on May 25th.

U.S. Home Prices Tick Up After Falling for Seven Consecutive Months

2025-01-22T03:13:37-06:00

U.S. home prices unexpectedly rose month-over-month in February, ending seven consecutive months of price declines. Home prices ticked up a modest 0.2% from January to February, according to the S&P CoreLogic Case-Shiller U.S. National Home Price Index, which measures average home prices across the nation. Although that was the first month-over-month upturn in eight months, the annual rate of acceleration has slowed over the past 10 months and is now at the lowest level since July 2012. Home prices were up 2% year-over-year in February 2023, down from the 3.7% annual jump in January 2023 and now stand 4.9% below the June 2022 peak. Looking at more granular results, the S&P CoreLogic Case-Shiller 20-City Composite Index, which tracks prices in the 20 largest metros, posted a slight 0.2% month-over-month gain, while the annual gain fell from 2.6% in January to 0.4% in February. In February, nine of the 20 cities in the index reported month-over-month price increases, while four posted no change. The largest monthly increase was in San Diego (1.5%), followed by Los Angeles and San Francisco (both up 1%). The biggest month-to-month decline was in Las Vegas (-0.9%). On an annual basis, eight metro areas recorded year-over-year price drops, with the largest pull backs in San Francisco (-10%) and Seattle (-9.3%). The nation’s biggest annual hikes were led by Miami (10.8%), Tampa (7.7%), Atlanta (6.6%) and Charlotte (6.0%).

Employment Gains Leveling Off in Major Markets

2026-03-04T06:52:48-06:00

Employment gains in the nation’s top markets have remained surprisingly steady in the face of economic headwinds pointing to a potential recession in the latter half of the year, according to data from the Bureau of Labor Statistics (BLS). The total number of jobs gained for the year-ending March in the top 10 markets RealPage tracks was about 936,000 jobs less than the total for the same 10 markets in March of last year. However, the total for the top 10 markets in March is virtually unchanged from last month’s total, with only about 3,000 fewer new jobs. Additionally, the same top four markets exceeded 100,000 jobs gained, with no change from February. @include('site.elements.media.image', ['fileId' => 13881, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Nine of last month’s top 10 markets returned to this month’s list with the first five remaining in place and a few other markets changing rankings. New York continues to lead the nation in annual gains but the addition of 231,800 jobs for the year-ending March is only about 10,000 jobs fewer than last month (although, almost 260,000 fewer than last year). Dallas returned at the #2 spot with an annual gain of 147,100 jobs, 44,600 jobs fewer than last year but just 3,700 less than February’s annual total. Houston remained in the #3 spot, gaining 142,000 jobs for the year, down only 33,000 from last March and up almost 7,000 from last month. The fourth spot was again held by Los Angeles, which added 110,300 jobs to the local economy but slowed by more than half the pace of last March, despite adding a few more jobs to the annual total than last month. Atlanta rounded out the returning top five with 96,600 new jobs, about even with last month but down 67,400 from last year. Philadelphia moved up a spot to #6 with 82,000 jobs gained, down 83,500 from a year ago and down only slightly from last month. Boston jumped from #10 last month to #7 in March, adding 79,300 jobs for the year, up...

Apartment Operational Expenses Soar

2025-01-22T03:13:37-06:00

Apartment operational expenses keep climbing, though not all markets and regions feel the pinch congruently. Insurance costs have climbed an astounding 17% year-over-year, followed closely by a 15% annual hike in turnover costs, according to data from RealPage Market Analytics. Utility costs are up about 10% on an annual basis. These three cost burdens – insurance, turnover and utilities – generally make up the least controllable expenses for a REIT. Payroll, administrative expenses, operations and maintenance and marketing costs can be more easily controlled. And still, those costs are up between 10% and 3% year-over-year. But finally, the good news: controllable expenses may finally be showing some signs of easing as inflation subsides somewhat.

Texas Apartment Demand Stabilizes in 1Q

2025-01-22T03:13:37-06:00

Apartment demand across Texas finally started to show signs of normalization in 1st quarter 2023. While these numbers certainly aren’t cause to celebrate, it’s a positive sign toward more normal trends. Austin was the Lone Star State’s demand winner in the first three months of 2023, with absorption of 1,919 units. This market saw a quick bout of net move-outs in 3rd quarter, but for the most part has stayed in the black. Houston wasn’t far behind, logging demand for 1,840 units in 1st quarter. This was the market’s first positive quarterly demand since this time last year. Other Texas markets to see demand return for the first time in a while were Dallas, Fort Worth, Corpus Christi and San Antonio. Even in Texas markets that logged net move-outs in 1st quarter 2023, the decline wasn’t terrible. The state’s poorest showing was in Lubbock, where 281 net move-outs wiped out the progress the market made in the last quarter of 2022. For college towns like College Station and Lubbock, however, net move-outs are typical in the first three months of the year.

U.S. Apartment Market Rallies After 3+ Volatile Years

2026-03-04T06:52:48-06:00

It’s been a wild few years for the U.S. apartment market. In 1st quarter of 2023, however, it seems like the market might be trying to get back to normal patterns. That’s welcomed news for operators after years of volatility. First, the global pandemic forced apartment residents to stay put in 2020, causing a brief market freeze and bifurcation between urban high-priced gateway markets and less expensive locales. Then, in 2021, the market rebounded, recording the biggest rental demand surge the nation has seen in at least three decades. @include('site.elements.media.image', ['fileId' => 13847, 'attributes' => ['border' => '0', 'width' => '1080', 'height' => '720']]) In 2022, damaged by record inflation and low consumer confidence, demand for all types of housing dried up and, by 4th quarter 2022, the market was at a record low. And all of this happened while the country was experiencing record apartment construction. Now, early signs are pointing toward the return of more normal seasonality and stabilization, as net apartment demand rebounded back into positive territory in 2023’s 1st quarter. Consumer confidence has also returned, though at moderate levels. Additionally, inflation is moderating and mortgage interest rates are now on the decline. @include('site.elements.media.image', ['fileId' => 13848, 'attributes' => ['border' => '0', 'width' => '1080', 'height' => '720']]) The record supply volumes, however, continue. In fact, big apartment supply will be a theme for at least another few years, as there are now over 1 million apartments under construction nationwide.

7 Takeaways from Interface Student Housing

2026-03-04T06:52:48-06:00

The near-term outlook for the student housing industry may be at an all-time high. This was the general sentiment captured from the April 2023 Interface Student Housing Conference in Austin, where more than 1,000 industry professionals gathered to discuss the state of the student housing industry. Dozens of sessions and hundreds of side conversations held throughout the three day affair elicited plenty of interesting takeaways. Here are the seven that most caught my attention. Expect Eventual Moderation from Today’s Double Digit Revenue Growth Due to the strength of demand, rent growth and pre-lease occupancy have excelled to all-time highs. But sage wisdom reverberated throughout many sessions: The unprecedented run of revenue growth will eventually return to more normal levels. Though the consensus among attendees was that performance will inevitably moderate below today’s record levels, there was some slight difference in suggested timelines. Some feel that next year will begin to show early signs of normalization while others feel Fall 2025 will be the turning point. A New Supply Baseline is Being Reestablished Few (if any) attendees anticipate that supply will return back to its peak 2010s level where north of 60,000 new beds were delivering. Though Fall 2021 and Fall 2022 may be the low point due to pandemic interruptions, a consortium of factors suggest that a new baseline for expected annual deliveries is now being established. It's certainly not impossible to find viable development sites, but it’s more difficult to do so today than 10 years prior. Another headwind for new construction? Financing. Not only has the broader economic tide shifted with rising construction costs and challenging cost of debt structures, but ongoing distress within regional banks – entities that fund a larger-than-typical share of student construction relative to the conventional sector – further solidifies the expectation that a new normal annual delivery total proba...

Markets Where Renter-Age Population Has Increased Most

2025-01-22T03:13:37-06:00

The renter-age population swelled considerably in six markets nationwide from 2016-2021, according to the latest data from the U.S. Census Bureau. Among the nation’s 150 largest apartment markets, the population of 20- to 34-year-olds – a prime renter age group – climbed 10%+ in six markets from 2016-2021. In Lakeland, FL, the young adult cohort grew by 14% in that five-year time span – a whopping 10 times higher than the national norm of 1.4% growth. Young adults also flocked to Provo-Oren, UT as the population of 20- to 34-year-olds grew by over 13% in that five-year period. In Austin, Boise City, Nashville and Colorado Springs, the population of 20- to 34-year-olds grew by 10% or more during that time. Across all age groups, the population of these six markets swelled at a much faster pace than the national average, where the total population grew 3.5% from 2016 to 2021.

Nashville Apartment Supply Hits a Three-Decade Peak

2026-03-04T06:52:48-06:00

While apartment demand in Nashville has faded from 2021 peaks, absorption remains sizable on a national scale. Still, demand in Music City has not kept up from record-breaking supply volumes for the last three quarters. Much of the apartment industry news surrounding Nashville in the past few years has been focused on new supply. And for good reason. In the past decade, apartment developers delivered over 58,000 new units in Nashville, swelling the existing base by nearly 50%. In other words, one in three apartment units in Nashville has been built within the last decade. Among the nation’s largest 50 apartment markets, only Austin and Charlotte logged bigger percentage increases in the past 10 years. But construction just keeps on coming in Nashville. Just in the past year, new supply volumes topped the 10,000-unit mark, the most Nashville has seen in a single year since RealPage Market Analytics began tracking the market in the 1990s. @include('site.elements.media.image', ['fileId' => 13721, 'attributes' => ['border' => '0', 'width' => '1080', 'height' => '720']]) Meanwhile, apartment demand across the nation has faded from the highs of 2021, potentially showing warning signs for markets with big supply volumes. And it’s true that, specifically in Nashville, apartment demand is also down from 2021 peaks. But it’s not all bad. Nashville recorded one of the nation’s strongest apartment demand tallies in 1st quarter 2023, absorbing 2,586 units in what is typically a seasonally slow period. Only Phoenix logged better results nationwide. On an annual basis, Nashville was also #2 in the U.S., recording demand for 4,415 units, a feat bested only by Newark. Central Nashville remains the market’s epicenter for both supply and demand volumes. In the year-ending 1st quarter, over 2,400 units were absorbed in Central Nashville, a bit behind concurrent deliveries of about 3,300 units. @include('site.elements.media.image', ['fileId' => 13728, 'attributes' => ['border' =>...

Mortgage Interest Rates Decline for Five Straight Weeks

2025-01-22T03:13:37-06:00

In positive news for potential home buyers, the average long-term U.S. mortgage rate inched down for the fifth consecutive week, reaching its lowest level in two months. In the week-ending April 12, the benchmark 30-year mortgage interest rate averaged 6.27%, based on applications submitted to Freddie Mac from lenders across the country. That rate was down from 6.28% the previous week and well below the two-decade high of 7.08% recorded in fall 2022. Still, the average long-term U.S. mortgage rate remains above the year-earlier rate of 5% and well above the historic low of 2.65% from early January 2021. For perspective, during the five years leading up to the pandemic (2015-2019), the 30-year fixed-rate mortgage interest rate ranged from 3.41% to 4.94%, averaging 3.99%.

Still Historically Strong, Student Housing Performance Could Be Normalizing

2026-03-04T06:52:48-06:00

Student housing pre-leasing and rent growth continue to hit record rates for the Fall 2023 academic year, but the extent to which that is true has softened somewhat in recent months. As of March, 65.7% of beds at the core 175 universities tracked by RealPage had been leased for the Fall 2023 school year – the highest March reading on record. March’s monthly hike in pre-leasing – about 7.6% higher than February’s rate – marks a lower-than-average bump. This late in the pre-lease season, average monthly hikes usually run north of 9%. But with so few beds left to be leased, the lower monthly hike seen in March is likely a result of less availability. @include('site.elements.media.image', ['fileId' => 13616, 'attributes' => ['border' => '0', 'width' => '1080', 'height' => '720']]) Across the distance spectrum, properties within a half mile of campus reported the strongest pre-lease rate of 67.7% in March. Properties within a half mile to one mile of campus were 60.5% pre-leased as of March, compared to 64.1% pre-leased at properties over one mile from campus. Several schools report ultra-high pre-lease occupancy above 90%, including the University of Tennessee, Appalachian State, Purdue, the University of Arkansas, the University of Wisconsin – Madison, Clemson, College of Charleston, the University of North Carolina and the University of Pittsburgh. Schools with lagging pre-lease rates generally fall into at least one of the following categories: commuter schools, satellite campuses of larger flagship schools or college where enrollment has stagnated. Rent growth is experiencing a similar phenomenon. While annual effective rent growth easily overshadows any other readings from the recent past, monthly rent hikes are beginning to look more normal. As of March, annual effective rent growth hit 9.7% across the RealPage 175. That’s a far cry from the days of 2% annual rent growth that were more normal pre-COVID. Still, March’s month-over-month rent growth of 0.7% look...

New Apartment Traffic Down 25% in New York

2025-01-22T03:13:37-06:00

Leasing traffic in the New York apartment market has slowed in recent months. While much of the recent slowdown can be attributed to normal seasonality in the winter months, this market is beginning to see a decline in leasing traffic overall, which is reflective of what is happening across the nation. Between February 2022 and February 2023, the total number of perspective renters shopping around in the New York apartment market fell by 25%. On the upside, a lot of New York residents are choosing to renew their leases, despite the decline in leasing traffic. In February 2023, roughly 65% of expiring leases were renewed in New York. That’s among the highest in the nation and comes in about in line with what this market’s pre-pandemic norm.

Apartment Markets with the Lowest Rents

2026-03-04T06:52:48-06:00

Among the nation’s largest 150 apartment markets, only a handful are still commanding average monthly rents below the $1,000 mark. All these low price apartment markets are located in the Midwest or South regions, and most are on the smaller side, with about 45,000 or fewer existing apartment units. The only exceptions to that rule are the Oklahoma duo of Oklahoma City and Tulsa, where the existing unit count runs closer to 70,000 and 100,000 units, respectively. Another commonality among these markets is annual rent growth pacing ahead of the U.S. norm. Again, the two Oklahoma markets are the exception, joined by the small Michigan metro of Flint. These three markets are logging annual effective asking rent growth of roughly 3% to 4%, either right in line with or a bit shy of the national average of 3.9%, according to March data from RealPage Market Analytics. @include('site.elements.media.image', ['fileId' => 13417, 'attributes' => ['border' => '0', 'width' => '1080', 'height' => '720']]) Wichita Among the nation’s largest 150 apartment markets, the metro with the biggest bargain is Wichita. With rents averaging $850, prices here come in nearly $1,000 short of the U.S. norm of $1,792. However, Wichita – a market with about 36,000 existing units – has seen notable rent growth as of late. Effective asking rents were up by 6% in the year-ending March. That was well ahead of this market’s five-year average closer to 4%. Youngstown-Warren-Boardman A small town on the Ohio/Pennsylvania border, Youngstown-Warren-Boardman commands apartment rents of just $870 monthly. Though rent growth has eased a bit in recent months, annual price increases as of March were still solid at 6%. But the real performance highlight in this market is the historically elevated nation-leading occupancy seen for much of the past few years. As of March, occupancy in this market of about 25,300 existing units still leads the U.S. at a very tight 99.2%. Annual occupancy growth also bested th...

Inflation Moderates Notably in March

2025-01-22T03:13:37-06:00

The pace of U.S. consumer price increases continued to ease in March, with the cost of goods and services cooling for the ninth consecutive month and hitting the lowest point in 22 months. Still, consumer price increases are at multi-decade highs, as a strong labor market and resilient consumer spending have continued to fuel economic growth. The Consumer Price Index (CPI) for All Urban Consumers, a measure of price changes commonly referred to as the inflation rate, was up 5% on an annual basis in March 2023, according to the Bureau of Labor Statistics. That was slightly below economists’ expectations. It was also down from the 6% annual increase in February and well below the 9.1% hike last June, which was the biggest year-over-year jump in prices since November 1981. Still, inflation has been above the Fed’s 2% target for two years. Excluding volatile food and energy prices, the core CPI increased 5.6% during the year-ending March. Looking at other indexes, the cost of food increased 8.5% over the past year. Shelter, which accounts for about one-third of the total CPI index, saw an 8.2% year-over-year price surge in March, the biggest annual gain in over 40 years. And new vehicles posted a 6.1% price increase over the past year. Meanwhile, price increases in airline fares (+17.7%) and eggs (36%) remain stubbornly high. Contributing to the lower inflation rate, the cost of energy dropped 6.4% year-over-year in March, with the cost of gasoline (-17.4%) having a big impact on that decline. The price of used cars and trucks (-11.2%) were also down on an annual basis.

Apartment Construction at 50-Year High? Yes, But … Not Really

2026-03-04T06:52:48-06:00

You’ve probably seen the headlines or heard the chatter: Multifamily construction is at the highest levels in 50 years. There are about 1 million multifamily units actively under construction nationally. But to say multifamily construction is at a 50-year high is equally true and terribly misleading. Why? Three reasons.@include('site.elements.media.image', ['fileId' => 13606, 'attributes' => ['border' => '0', 'width' => '1080', 'height' => '720']]) 1. There are roughly 2.5 times more multifamily units in the U.S. today than there were in 1970. So that means 1 million units today has nearly one-third the impact that it had back in the early 1970s. In other words: The total number of units under construction doesn’t tell the full story. It’s the relative expansion rate that matters more. At peak, new supply expanded the U.S. multifamily stock by 6.5% in 1973. At peak in this cycle, the inventory expansion rate will measure 2.2%, according to analysis of U.S. Census Bureau data. Think of it this way: Let’s say two people get a $6,000 raise. One was making $50k and the other was making $100k. While they saw the same nominal increase, one’s salary grew by 6% and the other by 3%. That’s typically how we think about changes in salary, and it’s a better way to think about changes in apartment supply, too. @include('site.elements.media.image', ['fileId' => 13605, 'attributes' => ['border' => '0', 'width' => '1080', 'height' => '720']]) 2. Multifamily starts have consistently come in around half the levels seen in the early 1970s. In fact, in this cycle, starts peaked just a hair above 600,000 units. By comparison, back in 1973, annualized multifamily starts peaked at 1 million units. And starts consistently topped the 600,000 unit mark for three straight years. Multifamily starts back then were generally smaller projects that could get approved and built much more quickly than today’s projects. So that means that projects today linger around in the total construction...

Rent Cuts Most Extreme in Mountains/Desert Region Markets

2025-04-21T16:36:46-05:00

While moderation in apartment market performance was seen nationwide in 4th quarter, the decline was most pronounced in the Mountains/Desert region markets. Across the region, effective asking rents contracted 2% during the quarter, the deepest decline seen among any other region nationwide. That’s not a terrible result when looking at historical perspective, as this region does typically see rent setbacks in 4th quarter. In fact, in late 2021, the decline dipped to 3%. But when looking at the rest of the U.S., quarterly rent cuts in the Mountains/Desert region were more severe than cutbacks of closer to 1% in the Carolinas, West Coast, Southeast and Texas. Rents eased mildly in the remainder of the regions, clocking in at 0.4% in the Great Lakes, 0.2% in the East Coast and just 0.1% across the Plains/Heartlands region.

U.S. Job Growth Continues to Ease but Remains on Solid Footing

2026-03-04T06:52:48-06:00

Job growth in the U.S. eased in March amid historic interest rate hikes to bring down inflation. However, the cooling is not happening nearly as fast as the Fed would desire. Despite nine rate hikes imposed by the Fed over the past year to curb inflation, the pace of hiring is still putting upward pressure on wages and inflation. And yet, pay increases aren’t keeping up with high inflation. Though easing, job growth remains solid, and the unemployment rate remains historically low. @include('site.elements.media.image', ['fileId' => 13541, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Employers’ steady demand for labor added roughly 236,000 employees to payrolls in March 2023, according to the Bureau of Labor Statistics (BLS). That was the weakest month-over-month change since December 2020. The nation’s recent job additions were in line with economist’s projections (239,000 jobs) but were well below February’s gain of 326,000 jobs and below the monthly average of around 399,000 jobs added in 2022. Despite the slowdown, employers are still adding more workers than they did prior to the pandemic, when job gains averaged roughly 190,000 each month from 2015 to 2019. On an annual basis, the nation gained roughly 4.14 million jobs in March 2023. Although down from the annual gains recorded throughout much of 2021 and 2022, that was well above the average of around 2.4 million jobs added annually from 2015 to 2019. @include('site.elements.media.image', ['fileId' => 13540, 'attributes' => ['border' => '0', 'width' => '1080', 'height' => '720']]) Downward revisions to January 2023 data showed 32,000 fewer jobs were added than previously reported, down to 472,000 jobs. The February 2023 job growth number was revised up by 15,000 jobs, to a total of 326,000 jobs. With these revisions, employment gains in January and February combined were 17,000 lower than previously reported. The U.S. economy has recovered all the net jobs lost during the C...

Apartment Markets with Positive Annual Demand in 1Q

2025-01-22T03:13:37-06:00

In the year-ending 1st quarter 2023, 10 of the nation's top 50 apartment markets posted positive net absorption. Newark led the U.S. for annual demand with 5,500 units. Posting well over 1,000 units absorbed in past year were Nashville, Austin, Jacksonville and Charlotte. Look for the number of markets posting positive annual absorption to improve as we move into peak leasing season. In line with seasonal norms, occupancy backtracked in all but four major U.S. markets during 1st quarter 2023. Therefore, the occupancy among all top 50 U.S. metros has fallen below its year-prior point. The biggest contractions were north of 400 basis points and found in Memphis, San Antonio, Greensboro and the Fort Worth side of the Metroplex. Las Vegas and Phoenix saw 3.9% contraction year-over-year. As such, 17 major U.S. metros sit above 95% occupied in the 1st quarter 2023 data – down from 31 metros this same time last year.

Top Five Build-to-Rent Properties Under Construction

2026-03-04T06:52:48-06:00

The build-to-rent (BTR) space continues to grow. There were some 341 BTR communities with 57,435 units under construction across the U.S. as of March 2023. Those numbers show that the BTR sector continues to hold developer interest as mortgage rates hover above 6% on 30-year fixed-rate loans and the Federal Reserve continues to raise interest rates. The consumer pool remains ripe in the face of economic uncertainty and elevated interest rates, as individuals choose to remain in place or remain renters rather than pursue the American Dream of homeownership. Looking at the BTR pipeline, more than 14,100 units have been permitted as of March. Additionally, RealPage is monitoring over 500 pre-planned properties with nearly 74,000 units in the construction pipeline. To add a little context, there were 1,026,941 conventional units under construction as of March, according to data from RealPage Market Analytics. The size of BTR properties varies widely. Out of the 341 BTR communities currently under construction, the number of units per community that RealPage is tracking ranges widely swinging from as few as 12 units up to 643 units. RealPage defines single-family BTR housing as those properties that are fully detached, semi-detached, row houses, duplexes, quadruplexes, and townhouses with no units located above or below. Here are the top five largest under construction BTR properties among the nation’s top 150 markets as of March 2023. Note that four of the largest projects are going up in some of the most actives markets for BTR. Additionally, three of the top five are rising in Texas. @include('site.elements.media.image', ['fileId' => 13499, 'attributes' => ['border' => '0', 'width' => '983', 'height' => '281']]) Orchard Farms Florida-based DLP Capital in partnership with Dallas-based JMJ Development broke ground on this South Fort Worth community in October. Located at Shelby Road and Rendon Road, Orchard Farms will offer 643 single-family rental units with thre...

Apartment Demand Rebounds in Q1 After Weak 2022

2026-03-04T06:52:48-06:00

Net apartment demand rebounded back into positive territory in 2023’s 1st quarter, ending a streak of three straight quarters of negative absorption. But the rebound looked nothing like the 2021 demand surge, and more like a tepid step toward some semblance of pre-COVID normalcy. The U.S. apartment market added 19,243 net new renters in the first three months of 2023, according to 1st quarter data from RealPage Market Analytics. That marked an improvement over 2022, when net absorption registered at -114,000 units despite strong job growth across the country. Yet it was still the softest 1st quarter since 2013; and furthermore, demand fell short of the 95,237 new units completing concurrently. @include('site.elements.media.image', ['fileId' => 13519, 'attributes' => ['border' => '0', 'width' => '1080', 'height' => '720']]) As a result, U.S. apartment occupancy rates continued to slide but to a much lesser degree than previously. Occupancy peaked back at 97.6% in February 2022 and had plunged 2.7 percentage points by December. But since calendar 2022, occupancy inched back only another 0.2 percentage points, coming in at 94.7% in March, matching the pre-pandemic decade average. A similar story played out with rents. In March, same-store effective asking rents for new lease signers increased 0.3%. While that was the largest month-over-month increase since August, it’s also only half the average increase seen during the month of March over the last decade. Year-over-year, effective asking rents were up 3.9% – the first time below 4% since April 2021. @include('site.elements.media.image', ['fileId' => 13518, 'attributes' => ['border' => '0', 'width' => '1080', 'height' => '720']]) When you look at U.S. apartment occupancy and rents right now, they suddenly look pretty normal on the surface. Obviously how we got here was unprecedented, and the road from here remains uncertain. But apartment fundamentals right now are still in very solid shape, even if it’s nothing...

Double-Digit Rent Growth in Fayetteville-Springdale-Rogers

2025-01-22T03:13:37-06:00

Rent growth in Fayetteville-Springdale-Rogers remains in double-digit territory, one of only six U.S. apartment markets among the top 150 recording annual increases at or above 10%. Effective asking rents in Fayetteville-Springdale-Rogers surged another 12.3% in the year-ending March 2023, according to data from RealPage Market Analytics. That rate marked the 14th consecutive month of double-digit increases and significantly outpaced the U.S. norm (3.9%) and South region average (4.%). Still, that rate increase fell below Fayetteville-Springdale-Rogers’ 13-year peak for annual rent growth recorded in June 2022 (15.8%). Yet, occupancy remains exceptionally strong in the small northwest Arkansas apartment market with a population of roughly 550,000 people. Supporting strong fundamentals in the college town, home to the University of Arkansas – an economic staple – with nearly 31,000 students, is job growth. Employers added 14,000 jobs in the year-ending February 2023, expanding the employment base 4.8%. As such, Fayetteville-Springdale-Rogers’ employment base in February 2023 is now roughly 28,600 jobs (about 10%) above the pre-pandemic level from February 2020. As of March, effective asking rent in Fayetteville-Springdale-Rogers averaged $1,090 per month, or $1.242 per square foot.

Apartment Market Comparison: Seattle vs. Tacoma

2026-03-04T06:52:48-06:00

While located closely to one another along the Puget Sound, Seattle and Tacoma are two very different markets. Seattle is a major market with a strong tech sector and a cultural hub. Tacoma is the more affordable alternative, a smaller town with attractive outdoor recreational options. This is the latest in the RealPage Market Analytics series comparing and contrasting neighboring apartment markets. Seattle, of course, claims the larger population at over 3 million residents, compared to Tacoma’s roughly 910,000 residents. Seattle lost 0.3% of its resident base in calendar 2021, according to the latest data from the U.S. Census Bureau. In contrast, Tacoma saw growth of 0.3%. @include('site.elements.media.image', ['fileId' => 13266, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Seattle made history as the first epicenter of an early U.S. outbreak of the COVID-19 pandemic. Along with some other gateway markets, Seattle was hit hard not only by pandemic-era job cuts, but also by residents fleeing the city for less expensive rental options when employees started working from home. Tacoma benefited greatly from that transition, offering residents more affordable alternatives. As of 4th quarter 2022, Seattle’s apartment rents averaged about $400 higher than in Tacoma. Seattle rents averaged $2,176 per month, while prices are just over $1,700 in Tacoma. It took until June 2022 for Seattle to recover all jobs lost during the pandemic. Because Tacoma didn’t lose quite as many jobs as Seattle, it recovered sooner, hitting its pre-pandemic mark in February 2022. As of January, Seattle’s total employment sits about 12,600 jobs above its February 2020 rate. Meanwhile, Tacoma is just 5,600 jobs above the pre-pandemic level. Both markets have a median household income above the national norm of about $69,000, but Seattle’s median of over $103,000 is about 20% higher than Tacoma’s median of about $82,000. @include('site.elements.media.image', ['fi...

Student Housing Rent Growth Outperforms Conventional Apartment Market

2025-01-22T03:13:37-06:00

For the first time on record, student housing rent growth is outpacing the price increases in conventional apartment stock. Student housing tends to have a lagged relationship to conventional multifamily housing, as the past two economic slowdowns have proved. The full history of student housing data doesn’t stretch back as far as that of conventional data. Still, in looking at the recent past, student housing rents are now growing faster than conventional apartment rents for the first time on record (except for a brief period in mid-2020 during the pandemic onset). Looking at the past two downcycles – early 2020 and late 2022 – upswing and downswing periods tend to have an inverse relationship in conventional and student housing performance. As of February, student housing rents were growing at 8.4% annually, while conventional rents were growing at 4.5%.

Two Small College Towns with Big Multifamily Appeal

2025-04-21T16:38:12-05:00

Two small apartment markets are popping up on radars with solid multifamily fundamentals thanks to the economic anchor of a major university: Fayetteville-Springdale-Rogers, home to the University of Arkansas, and Madison, home to the University of Wisconsin-Madison. Both of these small markets tend to register occupancy rates well ahead of the national average. The Fayetteville-Springdale-Rogers metro is home to about 550,000 people. Even with an existing base that has increased by a third over the past decade, demand here remains solid, and occupancy is strong – at 97.1% in 4th quarter. Fayetteville is among the top metros with the highest job growth over the past 10 years, keeping up easily with much bigger markets and bolstering apartment demand. Madison – with about 680,000 residents – was one of the few markets in the country that evaded occupancy contraction over the past year. In fact, Madison consistently maintains one of the tightest occupancy rates in the nation. As of 4th quarter, that rate was at 98.6%. This market is very difficult to build in and typically sees very strong retention rates. Additional economic factors that benefit from the local university are state government offices and an increasingly expanding tech hub.

Signs of Normalization Emerge in Ultra-Strong Student Housing Sector

2026-03-04T06:52:48-06:00

We’ve been reporting “all-time highs” and “best on record” accolades for the student housing sector every month so far in the Fall 2023 pre-lease season. Those superlatives remain accurate through the latest RealPage Market Analytics data, though month-over-month readings have softened back toward more average rates in the last couple months. As of February, more than 55% of the nation’s purpose-built off campus housing stock is pre-leased for the upcoming Fall 2023 academic year. Not only is that a record but it’s a record to a striking degree. That’s approaching 10% more than the 10-year average. Still, in January and February, monthly pre-lease occupancy growth fell below the long-term norm – not by much, but that marks a contrast from earlier in the season. That compares to October, November and December readings that easily outpaced the long-term average, climbing as much as 15% over the previous month in some instances. @include('site.elements.media.image', ['fileId' => 13287, 'attributes' => ['border' => '0', 'width' => '1080', 'height' => '720']]) A similar phenomenon can be seen in annual and monthly rent growth. On an annual basis, rent growth for off campus purpose-built student housing in Fall 2023 has been absolutely stellar, clocking in at 8.3% as of February. Today’s rent growth is more than 3x the long-term average of 2.4%. Even this time last year we were commenting on the resurgent rent growth in the space, but today’s figures make last year’s mark seem tiny in comparison. Still, the monthly rent hikes north of 1% seen in October, November and December are likely in the rearview. January and February reported more normal monthly gains in the 0.6% to 0.8% range. Those are still strong postings, but not to the unprecedented degree seen in the previous quarter. Take for instance November’s monthly price gain of 1.9%. That used to be a typical rate for annual rent growth. Fast forward just two months to January and that rate had softened by over...

Small Apartment Markets with Big Demand in 2022

2025-04-21T15:14:11-05:00

A handful of smaller U.S. apartment markets logged big demand in 2022, giving some bigger markets a run for their money. Among the nation’s largest 150 apartment markets, Madison ranked fifth for absorption in 2022, with demand for over 2,700 units throughout the year, according to data from RealPage Market Analytics. This performance was bested by only a few typical big demand markets with far greater populations, such as New York, Newark, Austin and Nashville. Madison was one spot where demand didn’t falter in 2022’s 3rd quarter, when much of the U.S. logged net move-outs. Small apartment markets with annual demand between 1,000 and 2,000 units in calendar 2022 were Charleston, Omaha, Huntsville, Midland/Odessa and Boise City.

Employment Slowdown Continues in Major Markets

2026-03-04T06:52:48-06:00

Employment gains in the nation’s top markets continue to slow from their post-pandemic rebound peaks, although, they remain relatively strong, according to data from the Bureau of Labor Statistics (BLS). The total number of jobs gained in the top 10 markets RealPage tracks for the year-ending February, was about 1.02 million jobs less than the total for the same 10 markets in February of last year. Additionally, the total for the top 10 markets is about 20% below last month’s total, or about 270,000 fewer new jobs, and only four markets exceeded 100,000 jobs gained compared to seven markets in January. @include('site.elements.media.image', ['fileId' => 13236, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Eight of last month’s top 10 markets returned to this month’s list and a few markets changed rankings. New York continues to lead the nation in annual gains but its addition of 236,700 jobs for the year-ending February is about 270,000 jobs fewer than last February. Dallas returned at the #2 spot with an annual gain of 154,500 jobs, 53,700 jobs fewer than last year. Houston and Los Angeles changed places again from last month at #3 and #4 but while Houston’s gain of 137,300 jobs was down a comparable amount to Dallas’ annual difference, Los Angeles’ gain of 102,300 jobs was about 245,000 fewer than the year before. Atlanta and Chicago also traded places in the #5 and #6 spots with matching gains of 93,000 jobs, but Chicago gained almost 128,000 fewer jobs than last year, while Atlanta’s annual gain fell by 72,500 jobs. Philadelphia returned to the #7 spot with an annual gain of 87,400 jobs, down almost as many from last year (-86,100 jobs). Seattle moved into the top 10 at #8 with 70,000 jobs gained but that was 30,000 fewer jobs than last year. Tampa also joined the top 10 list this month at #9, gaining 68,700 jobs in the year-ending February but saw the smallest decline in job gains of the top 10 (-13,700 jobs). Boston slipped two...

U.S. Home Prices Fall for Seventh Consecutive Month in January

2025-01-22T03:13:37-06:00

Rising mortgage rates are continuing to cool the hot housing market. Home prices fell 0.5% from December 2022 to January 2023, according to the S&P CoreLogic Case-Shiller U.S. National Home Price Index, which measures average home prices across the nation. That was the seventh straight month-over-month decline. Furthermore, the annual rate of acceleration has slowed over the past nine months and is now at the lowest level since December 2019. Home prices were up 3.8% year-over-year in January 2023, down from the 5.6% annual jump in December 2022 and well below the all-time highs of 20.8% seen last March and April. This pattern of deceleration was apparent at a regional level. The S&P CoreLogic Case-Shiller 20-City Composite Index posted a 0.6% month-over-month decline, while the annual gain fell from 4.6% in December to 2.5% in January. In January, 19 of the 20 cities in the index reported month-over-month price declines, with only Miami reporting an increase, though mild at just 0.1%. Some of the deepest month-to-month declines occurred in the West region of the country, with the steepest declines in Las Vegas (-1.4%), Seattle (-1.4%), San Francisco (-1.3%) and Phoenix (-1.2%). On an annual basis, only a few areas recorded year-over-year price drops, including San Francisco (-7.6%), Seattle (-5.1%), San Diego (-1.4%) and Portland (-0.5%). The Southeast region, on the other hand, posted some of the nation’s biggest annual hikes, led by Miami (13.8%), Tampa (10.5%) and Atlanta (8.4%) and Charlotte (8.1%).

Multifamily Permits and Starts Rebound in February

2026-03-04T06:52:48-06:00

Multifamily construction surged in February as both permitting and starts recorded strong growth from January’s annualized rates. The seasonally adjusted annualized rates for multifamily permitting and starts also reversed a recent trend of year-over-year declines, according to the U.S. Census Bureau’s monthly report. The annualized rate of multifamily permitting was up 24.3% in February compared to January (to 700,000 units), while multifamily starts jumped 24.1% from last month to 608,000 units. Year-over-year, permitting was up 16.9%, while starts were up 14.3%. Meanwhile, single-family permitting increased 7.6% from last month to 777,000 units but were down 35.5% from last year. Single-family starts were flat compared to January (up 1.1% to 830,000 units) but also declined significantly from last year (-31.6%). With a difference of just 77,000 units, February’s annualized permitting rates for single- and multifamily units are the closest they have been since June 2015. @include('site.elements.media.image', ['fileId' => 13152, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '572']]) The ratio of multifamily permits to total residential permitting is also at its highest since 2015 at 45.9%. Historically, that ratio averages about 29%. Multifamily starts compared to total starts is elevated as well at 41.9%, compared to an average of 25%. It remains to be seen if increasing borrowing costs and financial industry concerns slow the current hot pace of multifamily development. Multifamily completions surged 44.6% from January to 509,000 units and are up 72% from last February’s seasonally weak figure. Single-family completions were up a modest 1% in February with the annual rate reaching 1.037 million units, down 3.6% for the year. The number of multifamily units authorized but not started increased 2.6% for the month to 160,000 units, jumping 32.2% from one year ago. The ratio of multifamily units not started to annualized permits slipped back...

Which U.S. Apartment Markets are Low-Risk and Which are High-Reward?

2026-03-04T06:52:47-06:00

Early 2023 apartment market results have been something of a mixed bag. Some metrics have strengthened from late 2022 doldrums. Collected rent is surpassing its pre-pandemic level, rent growth is still strong, and leasing traffic remains solid. Meanwhile, other metrics cloud the outlook, such as evaporating loss to lease, a 40-year high in new apartment deliveries and still-high inflation. As such, the approach for most groups heading into 2023 and likely even 2024 has been one colored largely by risk mitigation. For some, that means closely monitoring the rise in expenses. For others, that means relying more heavily on low beta markets – a strategy that helps offset risk with the understood trade-off of a lower reward ceiling. Apartment markets can behave much like stocks and commodities. In other words, there is an inherent sense of volatility embedded within individual metros. While more nuanced strategies (urban or suburban focus; Class A, Class B or Class C; value-add or new development) are levers that can adjust risk profiles, the ultimate takeaway is that some markets are accompanied by more (or less) risk and reward than others. There are a number of ways in which market risk/reward (or risk-adjusted returns) can be measured. Some are rooted in deep statistical analysis while others can be derived from more comparative means. After all, there are a finite number of markets in which one can choose from so comparing available options can be a useful benchmark. The following text outlines a few risk/reward assessments by market. Keep in mind this list is far from extensive and does not explore every measure of risk or beta. What it does achieve, however, is a high-level overview and a closer-to-consensus view of volatility and trade off of risk/reward by market. Approach #1: Comparing Record High/Record Low Rent Growth Years Within Markets Perhaps the quickest way to compare local market volatility is by simply taking the difference between the highe...

After Briefly Matching National Norm, Southeast Apartment Occupancy Falls

2025-04-21T16:38:41-05:00

After occupancy in the Southeastern apartment markets temporarily exceeded normal operating procedure in 2021, rates have rebounded back to normal in recent months. In the three years ending in 3rd quarter 2020, apartment occupancy in the Southeast underperformed the U.S. average by about 70 basis points (bps) before a brief period when rates improved notably, essentially matching the U.S. average. This was uncharacteristic of the typically high-vacancy Southeast region. In the past few quarters, however, the Southeast apartment market has reverted to its long-term average, registering a few ticks below the national norm. The recent occupancy decline in the Southeast may seem drastic, but the U.S. overall has also lost steam in recent months.

Florida Beach Towns See Big Waves of Apartment Supply

2025-01-22T03:13:36-06:00

Several small Florida markets have some serious apartment supply underway, and most of them are located along the shoreline. Lakeland-Winter Haven – the only non-beach town on this list – will grow its apartment inventory by the most prolific ratio in the state of Florida in the near term. The more than 4,000 apartment units under construction will grow that small market 14.1%, according to analysis from RealPage Market Analytics. In North Port, apartment supply has been elevated for several years, despite dipping marginally in 2022. The nearly 6,900 units underway there will swell that market by 10.9%. Meanwhile, nearly 3,000 units underway in Port St. Lucie will grow that market by 10.8%. The more than 3,000 units and 4,000 units underway in Palm Bay and Cape Coral, respectively, will grow apartment inventory in those markets by just under 8%.

Apartment Market Comparison: New York vs. Newark

2026-03-04T06:52:47-06:00

Newark has long been touted as the cheaper living alternative to New York, though both cities are two of the most prolific apartment markets in the nation in terms of both price and inventory. Over the next several weeks, RealPage Market Analytics will be comparing and contrasting neighboring apartment markets. There are perhaps no other neighboring apartment markets more connected than New York and Newark. With a combined population of nearly 17.8 million residents, about 5.4% of the nation’s total population resides in New York-White Plains and Newark-Jersey City. New York, of course, claims the larger population at just under 11 million residents, compared to Newark’s nearly 7 million. Annual population growth in both markets hovered around 4% in 2021, according to the latest data from the U.S. Census Bureau. Both markets have a high concentration of young adults – demographics critical to apartment owners. In Newark, about 40% of the population is aged between 25 to 54. In New York, that rate is about 43%. Nationwide, about 33% of the population is aged 25 to 54. New York’s largest renter cohort is Affluent Singles, with those residents making up about 39% of the renter population. Roommates by Necessity comprises the largest renter cohort in Newark, by contrast, with about 30% of the renter pool. Newark has more Established Married Couples and Starting Out Singles while New York has more Independent Seniors. Both markets have similar rates of Families and Young Couples. @include('site.elements.media.image', ['fileId' => 13045, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) New York was hit hard not only by COVID-19 pandemic-era job cuts, but also by residents fleeing the city for less expensive rental options when employees started working from home. Some just went across the Hudson River, while others moved all across the nation as the work-from-anywhere trend took hold. It took until October 2022 for New York to recover all j...

Phoenix Submarkets with Prolific Apartment Construction

2025-01-22T03:13:36-06:00

Phoenix has dominated the national leader board for apartment construction activity in recent years as deliveries hit a record high in calendar 2022. That growth pattern continues, as Phoenix is the No. 2 market in the nation for units under construction, bested only by Dallas, as of 4th quarter 2022. In the past 10 years, over 75,000 new units have completed in Phoenix, increasing the existing base by 23.8%, according to data from RealPage Market Analytics. With 46,800 units underway at the end of 2022, inventory will increase by another 12% in the near term. From a submarket level, the western Avondale/Goodyear/West Glendale submarket is seeing the most construction. The apartment count there jumped by nearly 62% in the past decade and the submarket has another 12,200 units under way, which is scheduled to grow inventory by another 59.4%. The geographically large Pinal County submarket is also seeing some growth after no development in the past ten years. Now, with over 2,000 apartments under way, this submarket is expected to grow over 53% in the near term. Two other submarkets – Central Phoenix and Gilbert – are set to see increases between 22% and 28%, after roughly doubling inventory over the past decade. North Tempe/University and East Mesa will both grow by about 18%, after deliveries grew inventory by 26% to 47% in the past decade in those areas, respectively.

The Best and Worst Performing Submarkets Since the Pandemic

2026-03-04T06:52:47-06:00

Sun Belt submarkets in suburban areas, primarily in Florida, have seen the nation’s strongest rent performances since the start of the pandemic. Meanwhile, rents among urban Gateway submarkets have recorded the weakest performances during that time. That marks a big turnaround from the previous cycle from 2010 to 2018, when many of the best performing submarkets in the nation were in the West region. @include('site.elements.media.image', ['fileId' => 12967, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '592']]) RealPage Market Analytics examined the 706 submarkets within the 50 largest apartment markets in the country and ranked them based on total effective asking rent change from March 2020 to February 2023. That analysis resulted in some clear geographic patterns. Looking within individual markets, New York reported the biggest rent change bifurcation among its submarkets since the start of the pandemic with a delta of 28.4 points between the strongest rent performance (New York Northern Suburbs) and the weakest rent performance (Harlem). Big bifurcations were also seen in Washington, DC (26.3 points) and Philadelphia (25.6 points). @include('site.elements.media.image', ['fileId' => 12969, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '408']]) The smallest deltas in rent change performances were among submarkets in Riverside (6.5 points), West Palm Beach (7.1 points) and Greensboro/Winston-Salem (7.4 points). @include('site.elements.media.image', ['fileId' => 12968, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '408']]) Among the nation’s top submarkets for rent growth since the start of the pandemic, Phoenix’s Pinal County submarket took the lead, with rent growth of 39.2%. That took effective asking rents in Pinal County to $1,429 per month, though still well below the Phoenix average of $1,620. No other submarket in Phoenix landed among the nation’s top 15 rent growth leaders, but West Phoenix ca...

Apartment Construction Activity Surges in the Carolinas

2025-04-21T16:31:16-05:00

Apartment construction activity is heavy across the Carolinas, with several markets scheduled to see inventory increases of more than 10% in the near term. The states’ largest markets, Charlotte and Raleigh/Durham, rank among the nation’s top inventory growth markets, with apartment inventory increases of 15.1% and 13.6%, respectively. Certain pockets of each of these markets are slated to see more concentration of deliveries than others in the coming months. In submarkets like North Charlotte, for example, there are nearly 35 apartment units under construction for every 100 units that exist today. While existing Class A units in this submarket are expected to feel notable supply pressure, Class B units should be well insulated, as is the case across the U.S. In North Charlotte in particular, Class B stock commands prices that are roughly $450 less pricey than Class A counterparts.

Apartment Market Comparison: Los Angeles vs. Anaheim

2026-03-04T06:52:47-06:00

Orange County is known as an affluent tourist hub in Southern California, rife with theme parks and high-end shopping. Los Angeles is the commercial, financial and cultural hub of the West Coast. While only about 30 miles apart, these two apartment markets have some key differences. Over the next several weeks, RealPage Market Analytics will be comparing and contrasting neighboring apartment markets. For starters, Los Angeles has more than triple the population of the Anaheim-Santa Ana-Irvine metro, often called Orange County. In both markets, though, population change has been minimal over the last few years. Anaheim’s population has climbed a marginal 0.4% from 2020 to 2021 (the latest data available from the U.S. Census Bureau), though population declines were seen in several categories, including adults aged 20 to 34 – a prime demographic for apartment residents – and children under 5 years. Los Angeles, meanwhile, has seen its population stagnate over the last five years, dropping a mere 0.4% from 2016 to 2021. Population declines were most severe for younger residents with the deepest losses in children under 9 years and adults aged 20 to 34. @include('site.elements.media.image', ['fileId' => 12962, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) While virtually all markets were hit hard by pandemic-induced job cuts in early 2020, Los Angeles, in particular, experienced deep job cuts and has – until recently – struggled to recover. In November 2022, Los Angeles regained all jobs lost in the pandemic and now has an employment base of 4,624,700, about 4,200 jobs more than the February 2020 rate. Orange County, meanwhile, regained all lost jobs in October 2022 and now has an employment base of 1,702,400, about 19,000 jobs more than the February 2020 rate. In the year-ending December 2022, job growth in both markets has been strong and easily exceeded the national pace of 1.6% growth. Orange County’s employment base is about 20% Pr...

Revisions Boost 2022 Employment but Slowdown Continues

2026-03-04T06:52:47-06:00

The annual benchmark revisions from the Bureau of Labor Statistics (BLS) boosted December 2022 overall employment levels in two-thirds of the top 150 markets RealPage tracks by an average of 10,000 workers. However, the annual employment gain in January 2023 was lower in 75% of those markets from their gains in January 2022. Despite the continuing slowdown from post-pandemic rebounding employment, annual job gains in the top markets in the country continue to be relatively strong. Nationally, employment gains in January and February have exceeded most economists’ expectations but moderation throughout 2023 is still expected. The total number of jobs gained in the top 10 markets for the year-ending January, was about 660,000 jobs less than the total for the same 10 markets in January of last year, according to the latest release from the BLS. However, the total for the top 10 markets is about 16% above last month’s revised total and all the top 10 were higher than last month. @include('site.elements.media.image', ['fileId' => 12851, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Eight of last month’s top 10 markets returned to this month’s list and a few markets changed rankings. New York continues to lead the nation in annual gains, but the 308,700 jobs added for the year-ending January is about 144,000 jobs fewer than last January. Dallas returned at the #2 spot with an annual gain of 169,700 jobs, roughly 10,600 jobs fewer than last year. Los Angeles and Houston changed places from last month at #3 and #4 but while Houston’s gain of 152,900 jobs was little changed from January 2022’s total, Los Angeles’ gain of 161,000 jobs was about 203,000 fewer than the year before. Chicago and Atlanta remained in the #5 and #6 spots with gains of about 120,000 jobs, but Chicago gained almost 100,000 fewer jobs than last year, while Atlanta’s annual gain fell by 32,800 jobs. Philadelphia (106,799 jobs) and Boston (82,100 jobs) also switched pla...

Des Moines Apartment Inventory Jumps Notably

2025-01-22T03:13:36-06:00

In the last decade, apartment inventory has climbed nearly 37% in Des Moines as the small market added just under 15,000 apartment units since 2012. The Iowa market has been slowly and steadily adding new apartments over the last year, most prolifically in the 2015-2018 development boom, though construction has generally been modest and digestible. From a submarket level, all four of Des Moines submarkets have grown in the last 10 years, but to varying degrees, according to data from RealPage Market Analytics. South Des Moines/Warren County has only grown its existing unit count by about 7.6% in the last 10 years, while Northeast Des Moines/Ankeny has grown by a whopping 62.3%. Northwest Des Moines/Urbandale has grown by about 20.9% and West Des Moines/Dallas County has grown by about 48% during that time.

Class A Apartments Commanding 28% Premium Over Class B Prices

2026-03-04T06:52:47-06:00

The growing gap – in addition to the sheer difference – between Class A rents and Class B rents has been one of the investment theses that has supported immense investment activity in middle market Class B product. The investment thesis itself is fairly simple and straightforward. In theory, Class B apartments are insulated from the pressure of new supply delivering. For instance, the average stabilized Class A rent equaled $2,227 at the national level in 4th quarter 2022, according to data from RealPage Market Analytics. Class B rents, meanwhile, averaged $1,748. @include('site.elements.media.image', ['fileId' => 12832, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '572']]) That difference between the average Class A property and the average Class B property equates to a significant $479 difference per month. Not only is that nominally large, but the difference between Class A rents and Class B rents comes out to a 28% premium. @include('site.elements.media.image', ['fileId' => 12831, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '572']]) Interestingly, the spread between Class A and Class B rents (on a relative basis) has actually started to close in recent years, coming down from a peak of a 40% premium in the early 2010s cycle. Still, the end result is similar: that is, there is a hefty difference between average Class A rents and Class B rents. From that perspective, the investment thesis that Class B housing is insulated from Class A product holds largely true. All else being equal, the average Class A property would have to offer a substantial concession to pull a Class B household into the Class A product tranche. @include('site.elements.media.image', ['fileId' => 12833, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '572']]) The depth of concession is quite drastic. For a Class A property to equal the average Class B rent across the U.S., about 14 to 15 weeks free would be required as a disc...

Inflation Trends Down for the Eighth Straight Month

2025-01-22T03:13:36-06:00

The annual rate of inflation in February eased for the eighth month in a row and hit its lowest point in 17 months, but consumer price increases are still at multi-decade highs. The Consumer Price Index (CPI) for All Urban Consumers, a measure of price changes commonly referred to as the inflation rate, was up 6% on an annual basis in February 2023, according to the Bureau of Labor Statistics. That matched economists’ expectations and was down from the 6.4% annual increase in January and well below the 9.1% hike in June, which was the biggest year-over-year jump in prices since November 1981. Still, inflation has now remained above the Fed’s 2% target for two years. Excluding volatile food and energy prices, the core CPI increased 5.5% during the year-ending February. Looking at other indexes, the cost of energy was up 5.2% year-over-year, the lowest level in two years. Food prices increased 9.5% over the past year. Shelter, which accounts for about one-third of the total CPI index, saw an 8.1% year-over-year price surge in February, the biggest annual gain in over 40 years. Meanwhile, price increases in airline fares (+26.5%) remain stubbornly high. Contributing to the lower inflation rate, the cost of used cars and trucks plummeted 13.6% over the past year, while gasoline prices were down 2% from a year ago.

The U.S. Labor Market Remains Resilient

2026-03-04T06:52:47-06:00

The U.S. labor market has remained resilient despite historic interest rate hikes to curb inflation. Job growth in the U.S. eased in February but remained above expectations. And while the U.S. unemployment rate increased, it remained historically low. Employers’ steady demand for labor is keeping pressure on wage growth, and yet, pay increases aren’t keeping up with high inflation. Roughly 311,000 employees were added to payrolls in February 2023, according to the Bureau of Labor Statistics (BLS). That was a better result than the roughly 225,000 jobs economists projected for the month, but well below January’s gain of 504,000 jobs. In addition, recent job gains were below the monthly average of around 399,000 jobs added in 2022, but well above the average of roughly 190,000 jobs added each month prior to the pandemic from 2015 to 2019. @include('site.elements.media.image', ['fileId' => 12788, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) On an annual basis, the nation gained roughly 4.34 million jobs during the year-ending February 2023. Although down from the annual gains recorded throughout much of 2021 and 2022, it was well above the average of around 2.4 million jobs added annually from 2015 to 2019. @include('site.elements.media.image', ['fileId' => 12767, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '572']]) Downward revisions to December 2022 data showed 21,000 fewer jobs were added than previously reported, down to 239,000 jobs. The January 2023 job growth number was also revised down, with 13,000 fewer jobs, to a total of 504,000 jobs. With these revisions, employment gains in December and January combined were 34,000 positions lower than previously reported. The U.S. economy has recovered all the net jobs lost during the COVID-19 pandemic. As of February, the nation had nearly 3 million more jobs (+2%) compared to the pre-pandemic employment level from February 2020. Jobs by Industry Job growth in F...

Las Vegas Apartment Operators Resort to Rent Cuts

2025-01-22T03:13:36-06:00

Apartment operators in Las Vegas resorted to rent cuts recently, after logging very steep increases just a year ago. As if February, effective asking rents came down 0.9% year-over-year, the market’s worst performance since June 2020, according to data from RealPage Market Analytics. This was quite a change from the market’s January 2022 performance when annual rent growth peaked near 25%. Of the nation’s largest 50 apartment markets, only Phoenix and Las Vegas logged annual rent cuts in February 2023. A handful of smaller West region markets also posted declines. Decelerating occupancy also contributed to waning pricing strength. For much of the past decade, Las Vegas typically registered occupancy measurably ahead of the national average. That gap started to close in 2018, however, and the U.S. pulled ahead of Sin City in February 2022. As of February 2023, apartment occupancy in Las Vegas hit 93.2%, down a notable 390 basis points (bps) year-over-year. While about in line with the market’s decade average, that reading was 150 bps below the national norm.

Rent Growth Hits Another High in Fall 2023 Pre-Leasing Season

2026-03-04T06:52:47-06:00

The Fall 2023 pre-lease season has hit yet another accolade for pre-lease occupancy, and annual rent growth reached an unparalleled rate of 9.5% in February. Over 58% of student housing beds at the core 175 universities tracked by RealPage Market Analytics were pre-leased for the Fall 2023 academic year as of February, marking the highest February reading on record by a wide margin. In a more typical February, pre-lease rates hover around the halfway point of 50%, except the COVID-impacted year of 2021 when February’s pre-lease rate was about 40%. @include('site.elements.media.image', ['fileId' => 12664, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '572']]) Pre-leasing ran tightest at pedestrian properties within a half mile to campus where February’s pre-lease rate hit 60.4%. Properties within a half mile to one mile of campus had a pre-lease rate of 53.2% in February, compared to a 55.2% pre-lease rate at properties over one mile from campus. Meanwhile, Fall 2023’s annual effective rent growth towers head and shoulders above previous years, even considering last year’s substantial rebound. Annual effective rent growth hit 9.5% in February, the third consecutive month of 9%+ rent hikes. For comparison, a typical pre-pandemic year saw rents grow between 1% and 2%, on average. Fall 2022’s annual effective rent growth ended up around 6% at the tail end of the pre-lease season. @include('site.elements.media.image', ['fileId' => 12665, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '572']]) Across distances, rent growth was very strong, ranging from 8.4% annual increases in properties within a half mile to one mile of campus to 9.8% growth in properties within a half mile to campus. Properties over one mile from campus experienced annual rent growth of 9% in February. Schools with the highest rent growth tended to be large flagship universities in the South and Sun Belt regions, such as the University of Arkansas, Florida Inte...

Occupancy Decline Differs Across the Three Florida Regions

2025-04-21T16:33:46-05:00

While the trajectory for apartment occupancy is headed downward across Florida, the three regions of the state differ in intensity. Just a few years ago, this performance gap looked quite different. In North Florida, occupancy rates have fallen most severely, hitting an eight-year low in January at 94%, though much of that decline is weighed down by the recent plunge in Jacksonville. While Gainesville and Tallahassee have also hit multi-year lows, today’s occupancy essentially matches the low points these markets hit in 2021, when remote learning affected colleges in those areas. Central Florida’s occupancy contraction over the past year was deeper than in North Florida, but the ending rate as of January was a little higher at 94.6%. South Florida, meanwhile, has effectively rebounded back to pre-pandemic norms, with occupancy hitting 95.6% in January.

Apartment Rent Collections Reach Highest Mark Since Pre-COVID

2026-03-04T06:52:47-06:00

Market-rate apartment renters are paying their monthly rent at the highest frequency in three years. Rent collections in February 2023 climbed to 96.03%, the highest rate since March 2020. Improving rent payments provide further evidence that market-rate renters are generally in stronger financial shape than widely believed. Of course, exceptions continue to exist – as they always have, even pre-COVID – and therefore the strong results do not negate the need for more affordable housing supply and rental assistance programs. RealPage measures the actual share of rent paid compared to the amount due each month in millions of professionally managed apartment units. This differs significantly from surveys that capture only a few thousand renters. @include('site.elements.media.image', ['fileId' => 12706, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '572']]) Rent collections routinely topped 96% prior to the pandemic, then dropped to 95.1% in April 2020 and later fell as low as 94.9%. For each month over the past three years, collections measured consistently between 94.9% to 95.8%. The February 2023 result of 96.03% marked an improvement of 0.3 percentage points since January and of 0.9 percentage points year-over-year. The fact that the vast majority of renters continued to pay rent through COVID and the inflationary period that followed helps explain why eviction filings never spiked as much as some feared. Improving rent payments align with broader consumer trends. Earlier this year, Bank of America reported that consumers were in solid financial shape due to wage gains and to stimulus spending, even despite inflation at 40-year highs. In market-rate apartments tracked by RealPage, household incomes among renters signing a new lease jumped 24.9% between 1st quarter 2020 and 4th quarter 2022. That was roughly in line with the increase in average new-lease asking rents (23.9%) over the same time period. (Note that incomes – like asking rents r...

Record Apartment Deliveries on Tap in Albuquerque

2025-01-22T03:13:36-06:00

In 2022, the small market of Albuquerque received no new apartment supply, marking the first time in over a decade that happened, although apartment construction here generally runs low. In 2023, by contrast, apartment construction will hit an all-time high, according to data from RealPage Market Analytics. Albuquerque has both the highest level of units under construction (1,830 units, as of 4th quarter 2022) and the highest level of units set to complete within a year (1,576 units expected in calendar 2023) since RealPage began tracking the market in 2001. Those nearly 1,600 new units forthcoming this year represent a net inventory growth of 2.8% for this market of about 56,000 units. Deliveries over the next year will be spread throughout the market with five out of the market’s six submarkets receiving some new supply. North Valley, Westside/Rio Rancho and Northeast Heights will all see about 400 new units, with Uptown and Downtown Albuquerque/University receiving smaller blocks of new supply.

Knoxville is Among the Nation’s Strongest Apartment Markets

2026-03-04T06:52:47-06:00

Located about 200 miles east of Nashville along the Tennessee River, Knoxville is outperforming national trends. This small apartment market with roughly 52,600 existing units has maintained tight occupancy and stellar rent growth, despite both easing of late. @include('site.elements.media.image', ['fileId' => 12599, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Knoxville recorded strong apartment occupancy of 97.3% in 2022’s 4th quarter, ranking #9 among the core 150 markets nationally, according to data from RealPage Market Analytics. While down 160 basis points year-over-year, that reading was well above the national norm of 95.1% and well above Knoxville’s pre-pandemic average of 95.8% from 2015 to 2019. In addition, Knoxville’s 4th quarter 2022 occupancy landed well above Nashville’s rate of 94.9%. All of Knoxville’s product classes recorded occupancy at or above 96%, with Class C stock taking the lead at 98.4%. Meanwhile, Class B product was 97.5% occupied, while Class A product trailed with a rate of 96%. Likewise, occupancy among Knoxville’s four submarkets was tight, ranging from 96.8% in North Knoxville to a very strong 98% in Downtown/University/South Knoxville. @include('site.elements.media.image', ['fileId' => 12598, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '572']]) While rent growth in Knoxville has also softened recently, price increases remain solid, continuing ahead of historical norms and national averages. Same-store rents in Knoxville climbed 14.1% year-over-year in 4th quarter 2022, notably above the 6.6% increase in the U.S. overall and ranking #5 nationally. In addition, Knoxville’s annual rent growth performance was nearly double the pace set in Nashville (7.8%). While Knoxville’s recent price hike has come down from the historic peaks of nearly 20% in mid-2022, the market is still well ahead of its pre-pandemic average of 3.4% from 2015 to 2019. Similar to occupancy, rent growth remai...

Apartment Market Comparison: Baltimore vs. Washington, DC

2026-03-04T06:52:47-06:00

Baltimore is an important U.S. seaport. Washington, DC is the nation’s capital city. Located just an hour drive from each other, these neighboring multifamily markets are similar in demographic makeup but very different in some other respects. Over the next several weeks, RealPage Market Analytics will be exploring the similarities and differences of neighboring apartment markets. One of the big differences between Baltimore and Washington, DC is population. The nation’s capital is one of the most populous cities in the U.S., boasting 6.3 million residents, according to data from the U.S. Census Bureau. Baltimore is less than half that size, with an estimated 2.8 million people. Washington, DC saw one of the nation’s biggest international migration patterns in 2021. Almost 12,600 people migrated to the city from outside of the country. Only New York and Miami saw more in-migration internationally. That volume, however, was muted somewhat by the 66,800 or so people who moved out of DC to other U.S. cities during the year. In Baltimore, loss to domestic migration (-5,560 residents) outweighed international in-migration (1,990 residents). @include('site.elements.media.image', ['fileId' => 12590, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Both markets have struggled to recover from the pandemic-induced recession. Baltimore has regained the most jobs lost, and the total employment base sits 14,500 jobs ahead of pre-pandemic norms, according to data from the Bureau of Labor Statistics. Washington, DC, on the other hand, is still shy of February 2020 totals by 4,400 jobs. Among the nation’s largest 50 apartment markets, only a handful are still in the red in employment count. In addition to Washington, DC, other markets yet to fully recover are Milwaukee, Pittsburgh, San Francisco, Richmond and Cleveland. However, in the past year, specifically, job growth in both markets is right in line with the national average of 1.6%. Baltimore’s...

Dallas Submarkets with Prolific Apartment Construction

2025-01-22T03:13:36-06:00

Apartment construction in some Dallas submarkets will result in inventory boosts of roughly 20% or more. Dallas overall is typically a big contender for apartment deliveries. This market has been a national leader for inventory growth in the past 10 years, with the completion of nearly 172,000 units increasing the existing base by 34.4%, according to data from RealPage Market Analytics. Also a current construction leader, Dallas had another 50,600 units underway at the end of 2022, which will increase inventory by another 7.5%. Some submarkets are hotbeds of apartment construction activity, led by three northern suburban areas. Frisco’s apartment count has jumped over 260% in the last decade and the submarket now has another 7,600 or so units under way, growing inventory by another 25.3%. Two other northern submarkets – Rockwall/Rowlett/Wyle and Allen/McKinney – are set to see increases between 23% and 24%, after getting close to doubling inventory over the past decade. Apartment inventory growth around the 20% mark is also scheduled for the centrally located Zang Triangle/Cedars/Fair Park, as well as some more southern locales – Ellis County and Kaufman County. Of these, Kaufman County has seen the most growth in the past 10 years, nearly doubling inventory.

Texas Apartment Construction and Permitting Reach All-Time Highs

2025-04-21T16:41:57-05:00

While Texas apartment construction activity generally runs above national averages, the multifamily building pipeline in the state is now bigger than it has ever been. At the end of 2022, nearly 170,000 market-rate apartments were under construction across the Lone Star State. That was an all-time high for Texas and topped the state’s 2020 level by 55,000 units. As is usual, construction in Texas is concentrated across a few major markets. Dallas-Fort Worth remains the nation’s apartment construction leader, as it has been for a while, boasting 65,000 units under construction. Austin, which has seen a significant building boom in recent years, has 42,000 apartments currently under construction and saw another 22,000 units permitted in the past year.

Apartment Market Comparison: The Bay Area Trio

2026-03-04T06:52:47-06:00

San Francisco is the commercial and cultural center of Northern California. San Jose is home to the Silicon Valley technology hub. And Oakland is a major West Coast port. These neighboring apartment markets combine to make up the Bay Area region. While very similar in demographic makeup, there are slight differences in these multifamily markets. Over the next several weeks, RealPage Market Analytics will be exploring the similarities and differences of neighboring apartment markets. Oakland boasts the region’s largest population with 2.8 million residents, according to data from the U.S. Census Bureau. San Jose has 2 million people, while the population in San Francisco is the smallest in the region, estimated at 1.9 million residents. San Francisco saw one of the nation’s worst domestic outmigration patterns in 2021. While almost 5,000 people migrated to the city from outside of the country, that was no match for the 128,900 or so people who moved out to other U.S. cities during the year. Only New York and Los Angeles saw more out-migration domestically. San Jose and Oakland also logged domestic out-migration in 2021, but at much smaller levels, at around 45,000 to 55,000 people. This loss of residents led to net move-outs in the Bay Area region recently, which caused occupancy to stumble and rent growth to falter. @include('site.elements.media.image', ['fileId' => 12480, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) The economic base in San Francisco has yet to recover from pandemic-era job cuts. Total employment as of December 2022 came in 3,200 jobs below the job count from before the pandemic in February 2020, according to data from the Bureau of Labor Statistics. Other parts of the Bay Area region, on the other hand, have seen notably better performances. The job base in San Jose has recovered very well, with a workforce that is now 30,900 workers ahead of pre-pandemic norms from February 2020. Oakland’s job base – which is hea...

Apartment Occupancy Plunges in Myrtle Beach

2025-10-07T10:56:59-05:00

After ranking as a national leader for apartment occupancy growth in 2021, Myrtle Beach saw its occupied unit count take a dive more recently. Apartment occupancy plunged 530 basis points (bps) year-over-year, landing at 93% in January. That was the deepest dive in occupancy among the largest 150 markets and the ninth-lowest occupancy rate across the nation, according to data from RealPage Market Analytics. By comparison, the U.S. occupancy norm stood at 94.8% in January, about 180 bps above the rate in Myrtle Beach. Occupancy in this small coastal market also fell 100 basis points below the South region average and 90 basis points below nearby Charleston. With 60 miles of beaches, Myrtle Beach’s investor interest remains strong. More than 3,200 units are expected to complete in this small market within the next 12 months, pushing inventory up 7.2%. The resort town along South Carolina’s Atlantic coast is also on the radar for build-for-rent investors with one of the five largest projects expected to complete in 2023 under construction in North Myrtle Beach/Conway. Meanwhile, absorption slowed in the current cycle with net move-outs at the end of 2022.

Southeast Markets Continue to Lead in Home Price Gains

2025-01-22T03:13:36-06:00

Single-family home price increases are continuing a cooling trend, reflecting falling housing demand amid rising mortgage rates. The annual rate of acceleration has slowed over the past eight months and is now at the lowest level since August 2020. Still, home prices continue to increase at a robust clip on a year-over-year basis. Home prices fell 0.8% from November to December, according to the S&P CoreLogic Case-Shiller U.S. National Home Price Index, which measures average home prices across the nation. That was the sixth straight month-over-month decline. On an annual basis, home prices were still up 5.8% in December, though down from the 7.6% annual jump in November and well below the all-time highs of 20.8% seen last March and April. This pattern of deceleration was apparent at a regional level. The S&P CoreLogic Case-Shiller 20-City Composite Index posted a 4.6% annual gain in December, down from 6.8% the previous month. All 20 cities in the index reported price declines in December 2022 compared to November 2022. Some of the deepest month-to-month declines occurred in the West region of the country, with the steepest declines occurring in Phoenix (-1.9%), Portland (-1.9%), Las Vegas (-1.8%), San Francisco (-1.8%) and Seattle (-1.8%). On an annual basis, San Francisco (-4.2%) and Seattle (-1.8%) were the only areas that recorded a year-over-year decline in prices. The Southeast region, on the other hand, posted some of the nation’s biggest annual hikes, led by Miami (15.9%), Tampa (13.9%) and Atlanta (10.4%).

Multifamily Permits and Starts Both Decline

2026-03-04T06:52:47-06:00

The seasonally adjusted annualized rates for multifamily permitting and starts continue to moderate, according to the U.S. Census Bureau’s monthly report. The annualized rate of multifamily permitting was essentially flat in January compared to December (up just 0.5% to 563,000 units) while multifamily starts fell 5.4% from last month to 457,000 units. Year-over-year, permitting was down 4.1%, while starts were down 8.4%. Higher financing hurdles, greater regulatory costs, and delays or difficulties securing supplies and labor are eroding developer confidence – according to a recent survey by the National Association of Home Builders. @include('site.elements.media.image', ['fileId' => 12474, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '572']]) Single-family permitting declined for the 11th consecutive month, from an annualized rate of 1.2 million homes in February of this year to just 718,000 units in January. That was the lowest non pandemic affected annualized single-family permitting rate since September 2015. Year-over-year, single family permitting is down 40%. The annualized rate for single-family starts has also slowed, decreasing 4.3% from December to 841,000 units, and that was down from last year’s pace by 27.3%. Single-family starts have fallen below one million units for the seventh consecutive month. Multifamily completions were down about 9% from December to 349,000 units but that is more than 14% greater than last January’s seasonally weak figure. Single-family completions ticked up 4.4% in January with the annual rate reaching 1.04 million units, up almost 12% for the year. The number of multifamily units authorized but not started increased 5.5% for the month to 154,000 units jumping 26.2% from one year ago. The ratio of multifamily units not started to annualized permits is more than 27%, up from about 20% at the beginning of 2022. Single-family units authorized but not started fell to 132,000 units, down 11.4% from last...

Here are 4 Implications of Loss-to-Lease Dropping Below Long-Term Average

2026-03-04T06:52:47-06:00

Here’s a critical indicator that renewal lease rents will cool off significantly in coming months and lead to a) more favorable deals for renters, b) more renter turnover, and c) challenges for value-add investors dependent on large rent trade-outs. “Loss-to-lease” – the discount an average in-place renter pays versus today’s market rent for new renters. As a general rule of thumb: The larger the loss to lease, the larger the renewal increase. We saw large renewal rent hikes throughout 2022 as operators tried to bring renewal leases closer to market. But renewals are a lagging indicator often priced 60-120 days in advance, and loss-to-lease tends to be the leading indicator. By that measure, much has changed since June 2022 when loss-to-lease measured 10.1%. Leasing traffic cooled way down, and that led to four straight month-over-month rent cuts (for new leases) followed by a flat number in January. New lease rent cuts coupled with continued renewal rent growth leads to loss-to-lease compression. As a result, loss-to-lease has plunged down just as fast as it soared upward in 2021. Loss-to-lease as of January measured 3.3%, below the long-term norm of 4.5%. @include('site.elements.media.image', ['fileId' => 12143, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '572']]) And with it, renewal rent trade-out has cooled from 11.2% in June 2022 to 8.2% in January 2023. Look for deeper deceleration through the remainder of 2023. It’s critical to acknowledge there is almost always some loss to lease because there’s usually a discount for renewals relative to new leases, as operators often incentivize renewals in order to reduce turnover costs, reward good residents, and protect occupancy. A widespread “gain to lease” scenario is unlikely (although we may see it in pockets) as we’d have what’s called “inverted rents” – incentivizing renters to move from one unit to another at the same apartment property. Here are four possible implications: 1. Renew...

Jacksonville Homeownership Rate Climbs as Apartment Construction Mounts

2026-03-04T06:52:47-06:00

Jacksonville has earned some not-so-desirable headlines from us lately and was one of the stars of our Five Markets that May Struggle in 2023 webcast earlier this week. While apartment occupancy has dipped to a years-long low in Jacksonville and apartment construction mounts, another metric has caught our attention. Homeownership rates in Jacksonville are up notably since the pandemic began in early 2020. While homeownership rates from the U.S. Census Bureau have a notoriously high margin of error, annualizing the rate generally elicits cleaner results. Jacksonville’s annualized 4th quarter 2022 rate of 70.5% still stands well above the annualized pre-pandemic rate from 4th quarter 2019 of 63.1%. @include('site.elements.media.image', ['fileId' => 12375, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '572']]) It’s true that apartment occupancy has been on the decline over the last year, but that doesn’t necessarily translate to apartment residents moving out and into for-sale homes. Demand for all types of housing (for-sale and for-rent) usually rises together. Still, declining apartment occupancy could be made more severe by record construction in Jacksonville. Over 13,500 apartment units were under construction in the market as of 4th quarter 2022, with about 8,400 of those expected to deliver in 2023 – easily an all-time high since RealPage began tracking the market in 1995. All but two of Jacksonville’s 11 submarkets will see some level of new supply in 2023, led by over 1,700 units in Mandarin and over 1,400 units in Baymeadows. Southeast Jacksonville, St. Augustine and Northside will see roughly 1,000 units each, according to data from RealPage Market Analytics. @include('site.elements.media.image', ['fileId' => 12376, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '572']]) Still, demographic tailwinds counteract many possible pessimistic views of Jacksonville’s apartment market. The market’s population continues to g...

Backlog of Units Permitted But Not Started Shows More Starts Will Eventually Arrive

2025-01-22T03:13:36-06:00

As the number of multifamily starts has risen over the past few years, the number of units authorized but not yet started has climbed as well. Interestingly, the ratio of units not started compared to total multifamily units permitted (or authorized) has increased slightly in 2022. Historically, 21.1% of annualized multifamily permitting is delayed from starting but that ratio increased to 22.9% in 2022. Perhaps the cumulative effect of construction headwinds and financing delays are hindering the normal rate of multifamily development. Although there are concerns of overbuilding with the projected level of completions approaching 600,000 units in 2023 and another 500,000 in 2024, those numbers pale in comparison to historical peaks, according to data from the U.S Census Bureau. Multifamily permitting reached more than 1.2 million units in 1972 during the first wave of garden apartment development that spread across the U.S. Another peak of almost 720,000 units hit in 1985 with another wave of apartment development. In the first wave, the per capita amount of multifamily units was almost 6 units per 1,000 U.S. residents. In 1985, it was about 3 units per 1,000. The per capita rate for 2022’s level of multifamily permitting (a peak of 701,000 units in July 2022) is only 2 units per 1,000 residents.

Top 5 Themes Apartment REITs Are Monitoring in 1Q23

2025-04-21T14:48:11-05:00

As the seasonally slow winter leasing season comes to an end, apartment REITs continue to examine new lease traffic, resident retention, sky-high operating expenses, cap rates and more. In listening to numerous 1st quarter 2023 earnings calls, here are the key themes apartment REITs – not to mention, RealPage – will be monitoring. 1. Renewal lease growth has surpassed new lease growth. Consistent with RealPage Market Analytics data, many apartment REITs saw the inversion of renewal and new lease growth in the final quarter of 2022, as front-end demand continued to slow and poor consumer sentiment pushed many renters to renew. As a result, REIT executives noted sustained high resident retention above 55%, coupled with higher-than-normal occupancy levels above 95%, despite weak front door traffic. Going forward, REITs anticipate a return to seasonality in the crucial spring and summer months. That should lead to new and renewal lease growth inverting once again, as increased front door demand translates to strong new lease pricing power. 2. Apartment demand showing signs of bouncing back. While still early, demand has picked up in January and into February, as our Chief Economist Jay Parsons noted from the recent NMHC meeting. This demand rebound not only increases pricing power on new leases but can also be seen as another sign of a return to normal leasing seasonality. While we and the REITs don’t anticipate a return to the unprecedented performance of 2021, any early indicators of solid apartment performance in 2023 are good signs as we near the spring leasing season. 3. Move outs to home purchase continue to decline. Continued interest rate hikes by the Fed, coupled with continued uncertainty around future rate hikes, has caused many renters to pause a potential home purchase. Despite apartment rent hikes in the last couple years, there’s still a premium to own a home, according to John Burns Real Estate Consulting. Plus, REIT executi...

Corpus Christi is the Nation’s Worst Apartment Occupancy Performer

2025-04-21T15:12:27-05:00

A small Texas beach town located along the Gulf of Mexico is the nation’s worst apartment occupancy performer. Corpus Christi occupancy fell to 90.9% as of January, according to data from RealPage Market Analytics. That’s the worst performance among the nation’s largest 150 apartment markets and the worst showing this market has seen since August 2017. Occupancy came down by 350 basis points (bps) in the past year, which was a much deeper decline than the one seen in the U.S. overall (270 bps). Except for a brief stint in 2012 through 2013, Corpus Christi apartment occupancy has generally trailed the national average over the course of the past decade, so high vacancy is not too surprising here. But after apartment operators increased rents notably in 2021, occupancy came down even faster than normal, following a similar trend seen along other Gulf Coast markets.

Apartment Performance by Product Class Narrows

2026-03-04T06:52:47-06:00

While the variation in apartment performance across product classes widened during much of the unpredictable years of 2020 through 2022, that gap has now narrowed to more historic norms. @include('site.elements.media.image', ['fileId' => 12360, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '488']]) On a national level, annual rent growth reached 5% in January. That’s well below the double-digit growth seen from mid-2021 to mid-2022. While recent annual rent growth is in line with the five-year average, it is well above the average annual increase of 3.5% from 2013 to 2019. Rents in Class A apartments grew 5.7% year-over-year in January 2023, outperforming the national average and rent growth in Class B (4.6%) and C (4.4%) product, according to RealPage Market Analytics. That is in line with historical norms as Class A rents typically grow the fastest, while Class C prices increase the slowest. From 2013 to early 2020, the trend changed as middle-market Class B rent growth was generally the top performer, but not by a large margin. Once the pandemic struck, all that changed again. Following the onset of the pandemic, Class C product outperformed other asset classes for annual rent change, while Class A product underperformed by as much as 330 basis points (bps). That trend again reversed course in the second half of 2021 and into mid-2022, with Class A leading and Class C generally lagging, with the performance gap widening to more than 1,100 bps. Since late 2022, the difference between rent change levels among asset classes has narrowed, and as of January, the performance gap stood at 130 bps. @include('site.elements.media.image', ['fileId' => 12347, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '572']]) Among the 50 largest markets across the country, only Miami (10.7%) continued to record double-digit rent growth in the year-ending January. On the other hand, Phoenix (-1.5%) and Las Vegas (-0.8%) were the only large marke...

Great Lakes Apartment Markets Retain Hallmark Consistency

2025-08-11T08:13:17-05:00

The Great Lakes region is home to some of the most consistent apartment markets in the country. Looking at 20 years of annual effective asking rent growth, prices in the Great Lakes remained subdued – compared to some regions – during the months of intense hikes in 2021. Additionally, price cuts never got too deep in this region during the lows of 2020. Alternatively, the Mountains/Desert region has proven to be the most volatile apartment region. In 2021, peak rent growth above 13% was achieved across several regions: the Mountains/Desert area, the Southeast, the Carolinas, Florida and Texas. On the other hand, while rent growth was strong in the West Coast, East Coast, the Heartlands and the Great Lakes, the 2021 price increases did not get as steep, hovering mostly between 9% and 10%. West Coast markets, which had a lot more ground to recover from 2020, saw rents go up a bit more at 12%. In 2022, price hikes came down across the board, but the decline was much less significant in the markets along both coasts and the two Midwest regions, while the less stable parts of the country saw rent growth drop notably from previous highs.

Apartment Market Comparison: The South Florida Trio

2026-03-04T06:52:47-06:00

Miami is a coastal metropolis and the second-most populous city in Florida. West Palm Beach is known for its natural beauty and palm trees, while Fort Lauderdale boasts affordable beach vacations and boating canals. These neighboring apartment markets combine to make up the South Florida region. While very similar in demographic makeup and economic strength, there are slight differences in these markets. Over the next several weeks, RealPage Market Analytics will be exploring the similarities and differences of neighboring apartment markets. Miami is a national leader – behind only New York – in international migration patterns. Fort Lauderdale and West Palm Beach also tend to log notable in-migration from outside the U.S., but the numbers there are much smaller. This steady population influx boosts the regional economy, keeps apartment occupancy tight and allows for apartment rent hikes notably above of the national norm. Miami-Dade County boasts the region’s largest population with 2.7 million residents, according to data from the U.S. Census Bureau. Fort Lauderdale has a little less than 2 million people, while the population in West Palm Beach is the smallest in the region, estimated at 1.5 million residents. @include('site.elements.media.image', ['fileId' => 12332, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) All three South Florida markets have recovered well from pandemic-era job cuts, led by Miami. Total employment in Miami as of December 2022 came in 51,600 jobs over the total job count from before the pandemic in February 2020, according to data from the Bureau of Labor Statistics. Fort Lauderdale and West Palm Beach have also recovered, but the job counts there are less than 30,000 positions above pre-pandemic norms. The median household income across South Florida hits about in line with the U.S. average of roughly $69,000, according to five-year estimates from the U.S. Census Bureau. West Palm Beach – which also has th...

Midwest Markets Have Some of Nation’s Highest Cap Rates

2025-01-22T03:13:36-06:00

Cap rates for apartments remain historically low and are the lowest among major property types, as solid multifamily investment activity continued during 2022. Among the 150 apartment markets tracked by RealPage, there were 7,565 transactions totaling roughly $234 billion in 2022, based on data from Real Capital Analytics. While that dollar volume was down 24% from 2021, it was 57% greater than the sales volume prior to the pandemic in 2019. Cap rates among the top 150 markets averaged 4.54% during 2022, down 31 basis points year-over-year and well below the 5.39% average in 2019. Among regions, the Midwest posted the highest average cap rate of 5.05%, while the lowest average cap rate was in the West, at 3.99%. The South region posted a cap rate of 4.54%, matching the national average, while the Northeast region recoded an average cap rate of 4.80%. Among the nation’s 50 largest markets, the four highest cap rates were primarily in the Midwest, with the highest cap rate in Cleveland (5.58%), followed by Cincinnati (5.39%), Pittsburgh (5.20%) and St. Louis (5.18%). On the other hand, the lowest cap rates nationwide were in West region markets. San Jose posted an average cap rate of 3.59%, followed by Phoenix (3.68%), San Francisco and Los Angeles (both at 3.77%).

Seattle Apartment Demand Fades from Recent Peaks

2026-03-04T06:52:46-06:00

Seattle still commands one of the nation’s top apartment demand showings, despite a considerably faded market performance. While solid, annual absorption for apartments fell well behind supply totals, causing occupancy and rent growth to fade. @include('site.elements.media.image', ['fileId' => 11735, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Seattle logged apartment demand for nearly 2,600 units in calendar 2022, one of the best performances nationwide. Despite ranking as a national leader, Seattle’s 2022 demand was less than a third of its five-year annual demand average. The market logged net move-outs from a little over 1,000 units in 4th quarter, specifically, marking the first net move-outs since late 2020, when the market saw demand plunge – along with the nation’s other gateway markets – during the throes of the COVID-19 lockdowns. The new supply that hit Seattle’s apartment market in 2022 far outweighed concurrent annual absorption. Apartment developers delivered just over 10,000 units in calendar 2022, a little beyond the scope of recent norms in Seattle. That new supply volume was nearly four times the market’s concurrent demand pace. @include('site.elements.media.image', ['fileId' => 11734, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '572']]) With new supply far outstripping demand, Seattle’s occupancy fell 180 basis points (bps) in calendar 2022, landing at 94.9% in 4th quarter. That was just shy of the U.S. average of 95.1%. Once a consistent national apartment occupancy leader, Seattle has logged occupancy closer to the national average in recent years. For all of 2010 through 2016, Seattle’s apartment occupancy averaged 70 bps ahead of the national norm. In late 2017, occupancy fell behind the U.S. average for the first time in decades and has since struggled to achieve its previous status. Occupancy was tightly clustered between 94% and 96% across the product spectrum in 4th quarter. Class C...

This Small Florida Market Led the Nation in 4th Quarter Apartment Demand

2025-01-22T03:13:36-06:00

While apartment demand remained weak throughout much of the country during the last three months of 2022, Cape Coral-Fort Myers saw a rebound. This small market absorbed 1,363 units in 4th quarter, according to data from RealPage Market Analytics. That quarterly demand tally led the nation, surpassing top-performing major markets Nashville, Charlotte, Miami, Jacksonville and Phoenix. Cape Coral-Fort Myers’ 4th quarter demand cancelled out much of the net move-outs in the previous two quarters, keeping annual absorption in positive territory at 446 units. Of the nation’s 150 largest markets, only 49 logged positive absorption in calendar 2022. Cape Coral-Fort Myers’ strong demand in 4th quarter came amid a supply wave. In 2022, the market’s inventory expanded 3.8% with the addition of 1,915 units, of which 863 units came online in the last quarter of the year. Occupancy was up 100 basis points (bps) quarter-over-quarter (the second-best performance behind College Station-Bryan, TX) but down 270 bps year-over-year to 95.2% (in line with the national average). Still, effective asking rents grew 2.5% during the quarter (fourth-best performance nationally), taking annual rent growth to 15.8% (second-best performance behind Midland/Odessa, TX). Much of Cape Coral-Fort Myers’ resiliency comes from strong demand drivers. The population here grew 10.5% from 2016 to 2021, to nearly 752,300 people, according to the latest data from the U.S. Census Bureau. That was the 10th fastest growth pace among the nation’s top 150 markets. While the 55+ age cohort contributed the most to that population growth, the number of young adults ages 20 to 34, a key renter demographic, grew 8.8% during that five-year period, more than six times faster than the national average.

Inflation Continues Downward Trend

2025-01-22T03:13:36-06:00

The rate of inflation continued on a downward trend in the year-ending January, as climbing interest rates put a damper on rising prices. For the seventh month in a row, inflation has been easing on a year-over-year basis. In January, the annual inflation rate hit its lowest point in 15 months, but consumer price increases are still near 40-year highs. The Consumer Price Index (CPI) for All Urban Consumers, a measure of price changes commonly referred to as the inflation rate, was up 6.4% on an annual basis in January 2023, according to the Bureau of Labor Statistics. While that was slightly above economists’ expectations (6.2%), it was lower than the 6.5% annual increase in December and well below the 9.1% hike in June, which was the biggest year-over-year jump in prices since November 1981. Still, inflation has now remained at or near 40-year highs for 15 consecutive months, the biggest price surges since the severe economic recession of 1981-1982. Looking at commodities, the energy index rose 8.7% during the year-ending January, with the price of gasoline up just 1.5% from a year ago. Food prices increased 10.1% over the past year, but the price of eggs skyrocketed, climbing 70.1% year-over-year. Contributing to the lower inflation rate, the cost of used cars and trucks plummeted 11.6% over the past year. Meanwhile, price increases in airline fares (+25.6%), while easing, remain stubbornly high. Shelter, which accounts for about one-third of the total CPI index, saw a 7.9% year-over-year price surge in January, the biggest annual gain in over 40 years.

The Five Largest Apartment Transactions in 4th Quarter 2022

2026-03-04T06:52:47-06:00

Investments in U.S. apartments continued to cool in the last three months of 2022 amid the rising cost of debt and declining market fundamentals. Though current sales were below the peak from a year earlier, apartment transactions remain high by historical norms, with the asset class remaining an attractive commercial real estate investment. @include('site.elements.media.image', ['fileId' => 12184, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '450']]) Roughly 2,000 apartment properties changed hands at a value of $50.4 billion during 4th quarter 2022, according to MSCI Real Capital Analytics (RCA). The overall sales volume during the quarter was down 69% year-over-year, well below the 4th quarter 2021 peak, when around 5,100 properties changed hands for $163 billion, the result of pent-up demand following the onset of the pandemic. But recent activity is still above the $42 billion quarterly average during the five years leading up to the pandemic. The average price per unit also remained high, at $221,192 in 4th quarter, registering above $200,000 for the sixth consecutive quarter. Prior to 2021, unit pricing never exceeded that threshold and averaged $183,000 over the five years leading up to that. Meanwhile, cap rates for 4th quarter transactions remained at historic lows, averaging 4.9%, up 20 basis points (bps) year-over-year. In addition, multifamily cap rates during 4th quarter remained the lowest among major property types. @include('site.elements.media.image', ['fileId' => 12185, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '572']]) On an annual basis, transactions in 2022 totaled more than $294 billion with around 10,100 properties trading hands. Looking back over the past few years, sales dipped in calendar 2020 due to the pandemic, when about 7,200 apartment communities were sold for nearly $147.5 billion. That was well below the volume from 2019, when 9,000 properties traded hands for $193.4 billion. In 2021,...

While Concessions Ticked Up in 4Q, Discounts Remain Limited

2026-03-04T06:52:47-06:00

With record supply on the way in 2023 and fears that 2022’s demand slowdown may carry forward into the peak summer months, groups are once again asking about concessions. The discussion of whether concessions are an effective management practice is polarizing. But putting aside their effectiveness (or ineffectiveness, perspective depending) it’s safe to say that concession utilization has become far less common in recent years. Over the past 20 years, an average of about 30% of stabilized vacant units have offered a concession, according to data from RealPage Market Analytics. During the throes of the Great Recession, concessions were approaching nearly 7 out of every 10 vacant units. But in the past five years, that figure has been just half of the 20-year average (coming in at 16%). @include('site.elements.media.image', ['fileId' => 12196, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '572']]) From that perspective, even the recent increase in concession utilization seems modest in comparison. Even more so when you consider the scale of units offering in absolute figures. Despite adding some 4.1 million additional units between 2002 and 2022, today’s total number of units offering a concession sits just above 100,000 units. @include('site.elements.media.image', ['fileId' => 12197, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '572']]) While that is up from its all time low (41,000 units in early 2022), the simple math shows concessions are significantly more limited than years past. All considered, today’s concessions leverage seems sparse when zoomed out to a long-term view. But by that same token, market fundamentals are often a hyperlocal phenomenon. And even though the national storyline shows limited concessions, there are pockets of the country where concessions are beginning to factor into the equation. The following table shows all major U.S. submarkets where at least one-third of vacant units are offering a co...

4Q22 Absorption Might Signal a Shift Toward a More Normal 2023

2025-01-22T03:13:36-06:00

The pandemic’s impacts including lockdowns, reshuffling migration patterns, and higher variability of lease terms (fewer of the standard 12-month leases and an increase in non-standard lease terms) all informed a disruption of typical seasonal trends. While recent leasing trends have been weaker than operators would hope to see (new lease traffic hit a 10-year low in 4th quarter 2022), the leasing slowdown did introduce the question: “Is seasonality normalizing once again?” In some regards, it appears that is the case. Quarterly absorption tends to dip slightly negative during the winter months, as shown by the 20-year average, calculated by RealPage Market Analytics. But 4th quarter 2021 was anything but normal, as the 4th quarter absorption rate of some 124,000 units ranked as the 14th strongest absorption of any quarter dating back 20 years. The glass half empty perspective can rightfully point out that quarterly absorption has been negative for three straight quarters – the first time in at least 20 years in which that has happened. But a glass half full perspective can equally and justifiably point out that 2021 was an unsustainable trend and the normalization of market trends was inevitable. It appears that signals point toward more normal leasing trends moving forward although the 2nd quarter absorption readings will be a critical indicator of full calendar 2023 performance.

Nearly Half of Student Housing Beds Leased for Fall 2023

2026-03-04T06:52:47-06:00

The pre-lease momentum continues for student housing. Over 48% of student housing beds at the core 175 universities tracked by RealPage Market Analytics were pre-leased for the Fall 2023 academic year in January, marking the highest January reading on record by a wide margin. This month’s rate compares to about 41% in January 2022, 31% in January 2021 and 39% in January 2020. @include('site.elements.media.image', ['fileId' => 12156, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Meanwhile, students who leased a bed for the Fall 2023 academic year paid, on average, 9.3% more than students leasing the same bed a year earlier. That rate easily ranks as the highest annual effective rent growth on record, outstripped only by last month’s gain of 9.4%. That minor downtick in rent growth could indicate an inflection point in which student housing rents are finally leveling out from unsustainable levels, but time will tell. In a pre-COVID world, annual effective rent growth hovered below 2%. Since students returned to campuses in mid-2021, rent growth has been climbing. As is generally the case, pedestrian properties within a half mile of campuses outperform in both rent growth (9.7%) and pre-leasing (50.3%). Though rates were strong across the board. Properties within a half mile to one mile of campus reported the weakest – but still historically strong – pre-lease rate of 43.1%, compared to 45.5% in properties over one mile from campus. Likewise, rent change was historically high, reaching 8.5% in properties over one mile from campus and 8.1% in properties within a half mile to one mile of campus. Looking at individual campuses, a number of schools – particularly large, flagships in the South region – reported ultra-strong pre-lease occupancy in January. The University of Wisconsin (Madison), University of Arkansas, University of Tennessee, Clemson and Purdue were the clear stand outs as of January, all reporting pre-lease occupancy above...

Apartment Leasing Traffic Ticks Up as Cooling Rents Incentivize Relocations

2026-03-04T06:52:47-06:00

Apartment leasing is showing signs of improvement, but at least some of it appears to stem from musical chairs. Renter retention – which skyrocketed in the last couple years – plunged 5.5 percentage points year-over-year back to a more seasonally normal rate of 51.3% in January 2023. Retention rates will likely further drop in coming months as a big wave of new apartment supply plus cooling rents incentivize turnover. @include('site.elements.media.image', ['fileId' => 12142, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '572']]) Why are retention rates dropping off? In the simplest of terms: It’s supply (more of it) and demand (less of it). As a result, there’s more availability and therefore rents are cooling. In turn, renters facing lease renewals suddenly have a lot more options – often attractively priced as apartment operators push hard to keep occupancy elevated. Here’s a more detailed explanation: Retention first soared during the 2020 lockdowns, briefly dropped back to normal in the second half of 2020, and then shot up again throughout 2021-2022. Interestingly, renters renewed leases most frequently when rent growth was at peak levels – as it was often cheaper to renew than relocate, plus ultra-low vacancies meant there were few attractive alternatives (in any housing type, not just apartments). After a record surge in new-lease demand in 2021, leasing traffic stalled out in 2022 despite strong job growth and strong income growth. Demand for all types of housing essentially froze up due to low consumer confidence. People were waiting it out, even if they were secure in jobs, and renters already in place continued to renew at high frequency. The lack of front-door leasing plus growing new supply levels led to occupancy rates falling from a record high of 97.6% in February 2022 to 94.8% as of January 2023. While that’s a very normal and healthy rate historically, it’s also the lowest since 2018. That prompted four straight months of...

Apartment Occupancy Falls Across Every Major California Market

2026-03-04T06:52:47-06:00

Net move-outs across California’s major markets prompted a contraction in occupancy in calendar year 2022 and again in January 2023. Occupancy across the Golden State’s major markets fell between 140 and 320 basis points (bps) on an annual basis, according to RealPage Market Analytics. @include('site.elements.media.image', ['fileId' => 12104, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '572']]) Seven of California’s eight major markets recorded deep net move-outs in the last three months of the year with Los Angeles ranking as the worst market for demand in calendar year 2022. San Jose was the only exception, recording mild absorption in 2022. As a result, occupancy dipped statewide. Sacramento recorded the deepest contraction in occupancy, falling some 320 bps in the year-ending January 2023 and marking the market’s worst annual performance in the RealPage dataset. Following closely behind was Riverside where occupancy fell 310 bps, a 13-year low for annual occupancy change. For comparison, occupancy across the U.S. fell only 270 bps year-over-year. Oakland rounded out the three worst performances across the state with a 270 bps occupancy decline, in line with the U.S. norm. Even in San Jose, the only market with positive absorption in 2022, occupancy still fell 140 bps in year-ending January as supply outpaced demand. San Francisco also saw occupancy fall 140 bps. The remaining Southern California markets of Anaheim, Los Angeles and San Diego also saw occupancy decline considerably. On a monthly basis, seven of the eight major markets saw occupancy backtrack or remain flat in January. Three markets saw occupancy contract 20 bps on a month-over-month basis: Oakland, Riverside and Sacramento. Meanwhile, occupancy remained flat in Anaheim, San Francisco and San Diego, in line with the U.S. average. Only San Jose saw occupancy improve in January, tightening a slight 10 bps. @include('site.elements.media.image', ['fileId' => 12112, 'attributes...

Even Amid Softened Demand, Sioux Falls Occupancy Persists

2025-01-22T03:13:36-06:00

The apartment market in Sioux Falls, SD has gotten consistently stronger over the last handful of years. Since about 2016, occupancy in this market with about 24,000 existing units has been steadily climbing as a growing population has gobbled up moderate levels of new apartment supply. Even as nationwide demand has pulled back considerably in the back half of 2022, Sioux Falls reported occupancy of 97.2% in 4th quarter 2022, according to data from RealPage Market Analytics. Annual supply has been moderate, averaging under 700 units per year in the since 2017. Demand, meanwhile, has easily outpaced that rate, averaging about 850 units per year in that time, though annual absorption got as high as 1,730 units in early 2022. That strong demand makes a lot of sense when put into perspective of recent demographic tailwinds. The Sioux Falls, SD population has grown over 10% in the last five years to hover around 272,400 people, according to the latest data from the U.S. Census Bureau. That surge in residents was seen across nearly every age range, with the biggest jumps in residents aged 65 and older and ages 35 to 44.

States with Double-Digit Inventory Growth on Tap

2025-01-22T03:13:35-06:00

Apartment construction activity is peaking all across the U.S. But new supply is causing some states to log existing inventory growth rates north of 10%, according to year-end 2022 data from RealPage Market Analytics. While two of these states – Arizona and North Carolina – are hot spots for construction, the remaining states on this list have smaller apartment inventory to begin with. And, interestingly, there seems to be a concentration out west, with a band of states starting in Arizona and working up to Montana. On the other side of the country, Delaware is seeing the nation’s biggest new supply increase as a percentage of existing stock, with just 986 units increasing the apartment base by 13.8% in the near term. Utah is scheduled to see inventory growth of 12.5% with the addition of nearly 21,000 new apartments units. South Dakota and Montana will both grow existing inventory by about 11% with roughly 4,000 to 6,000 units under way in those states, respectively. The big story here is in Arizona and North Carolina, where big blocks of construction will increase the existing unit base by 10.4%. Back in 3rd quarter, we reported North Carolina was one of five states building nearly half of all the new apartment supply in the U.S. Since then, supply volumes in that state have increased by more than 2,000 units. And lastly, Idaho, with roughly 6,600 units under way, will see inventory growth of 10.3%.

U.S. Job Growth Surprisingly Strong in January

2026-03-04T06:52:47-06:00

U.S. job growth accelerated sharply in January, amid efforts by the Federal Reserve to slow inflation with higher interest rates. Meanwhile, the U.S. unemployment rate dipped to a 54-year low. Employers’ steady demand for labor is keeping pressure on wage growth, and yet, pay increases aren’t keeping up with the high inflation rate. @include('site.elements.media.image', ['fileId' => 12036, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '280']]) Roughly 517,000 employees were added to payrolls in January 2023, according to the Bureau of Labor Statistics (BLS). That was a far better result than the roughly 185,000 jobs economists projected for the month and well above December’s gain of 260,000 jobs. January’s jobs performance was the nation’s strongest monthly surge since July 2022. In addition, the recent job gains were above the monthly average of around 401,000 jobs added in 2022 and well above the average of roughly 190,000 jobs added each month from 2015 to 2019. On an annual basis, the nation gained roughly 4.97 million jobs during the year-ending January 2023. Although down from the annual gains recorded throughout much of 2021 and 2022, it was well above the average of around 2.4 million jobs added annually from 2015 to 2019. @include('site.elements.media.image', ['fileId' => 12037, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '572']]) Upward revisions to November 2022 data showed 34,000 more jobs were added than previously reported, up to 290,000 jobs. The December 2022 job growth number was also revised up, with an additional 37,000 jobs, to a total of 260,000 jobs. With these revisions, employment gains in November and December combined were 71,000 higher than previously reported. The U.S. economy has recovered all the net jobs lost during the COVID-19 pandemic. As of January, the nation had over 2.7 million more jobs (+1.8%) compared to the pre-pandemic employment level from February 2020. @include('site.elem...

New Lease Trade-Out Varies Along the West Coast

2025-04-21T16:44:13-05:00

Among West Coast apartment markets, there’s a gap in performance between Southern California, the Bay Area and the Pacific Northwest. SoCal markets appear to have fully recaptured the momentum lost during the pandemic decline. New lease trade-out was solid as of December 2022 in Anaheim (9.4%), San Diego (8.6%), Riverside (7.9%) and Los Angeles (7.3%). Bay Area apartment markets, meanwhile, struggled to maintain pace. San Jose was the only Bay Area apartment market to log new lease trade-out above the national average (4.6%), with growth of 5.9% in December. Rents for new leases were up by a much softer 1.6% in nearby Sacramento and 1.5% in San Francisco, while Oakland barely registered any growth at 0.7%. In the Pacific Northwest, Portland logged new lease trade-out of 6.1%, a bit ahead of the national norm. However, Seattle was the worst performer along the West Coast, and one of the worst among the nation’s largest 50 apartment markets, with a rent cut of 1.8% among new leases. Only Milwaukee logged a worse performance in December.

Five Takeaways from NMHC’s Annual Meeting

2025-01-22T03:13:35-06:00

The National Multifamily Housing Council’s Annual Meeting drew a record crowd in Las Vegas this week. Here are five takeaways I left with. 1. Apartment buyers vastly outnumber sellers. Or put another way: Lots of buyers are waiting for better pricing to offset higher interest rates/cost of debt. I suspect pricing may not "correct" quite as much as many buyers hope or need to see. Investors still love multifamily relative to other options, and it's difficult to see how pricing falls as much as the public market suggests. Given the gap in pricing expectations, it seems unlikely much will trade in the first half of 2023, before eventually buyers get more aggressive – perhaps once the Fed signals a pause in interest rate hikes. 2. There will be some distress among investors who bought <4 cap deals over last couple years with high leverage and/or floating rate debt, as well as among some developers struggling with lease-up targets. But how many of those deals actually hit the market in 2023? There are so many "rescue capital" funds looking to inject preferred equity or mezz financing, and even chatter about some lenders playing that role directly or playing matchmaker with capital. Remember that most owners will want to avoid selling at a loss – as once you do that, it becomes exceptionally difficult to get back in the game and raise capital again. I imagine many higher quality assets with financing issues get quietly worked out behind the scenes, while much of the distress that hits the market could be lower quality, sub-institutional assets. Anyway, this will be a fascinating story to watch play out in 2023. 3. On the fundamentals side, leasing traffic is re-accelerating to healthy (not crazy) levels. Prospective renters re-entered the market after New Year's following a super slow second half of 2022. Affordability isn't the big issue (incomes are plenty high), but the question is: How serious are these prospective renters, and is this a bli...

Apartment Market Comparison: Dallas vs. Fort Worth

2026-03-04T06:52:47-06:00

Strong job growth, nearly unbelievable apartment construction and a seemingly unending flow of in-migration could describe several Sun Belt markets tracked by RealPage, but probably none more fittingly than the North Texas duo of Dallas and Fort Worth. Over the next several weeks, RealPage Market Analytics will be exploring the similarities and differences of neighboring apartment markets. The Dallas-Plano-Irving market has about double the population of the Fort Worth-Arlington market, although both have experienced strong population growth and demographic tailwinds over the last several years. The Dallas population grew 10% from 2016-2021, compared to an 8.4% surge in Fort Worth. @include('site.elements.media.image', ['fileId' => 11905, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Both markets have fully recovered pandemic-era job cuts and outpace the national norm for job additions in the last year. Dallas is known for having a more white-collar workforce as its largest employment sector is Professional and Business Services. Fort Worth’s largest employment sector, meanwhile, is Trade, Transportation and Utilities, according to the Bureau of Labor Statistics. Dallas has a more educated population as about 39% of its residents have a bachelor's degree, compared to about 32% in Fort Worth. Subsequently, the median income in Dallas (about $80,000) registers about $6,000 above Fort Worth’s ($74,000). Turning to apartment resident data specifically, both markets have a rent-to-income ratio in line with the national norm of 23%, according to the latest research from RealPage Market Analytics. Rental rates tend to be more affordable on the Fort Worth side of the Metroplex, with effective asking rents coming in at roughly $1,400, notably behind the Dallas rate of nearly $1,600. When looking at resident makeup, Dallas and Fort Worth have far more similarities than differences. Across both markets, the largest renter cohort is easily Sta...

Jackson, MS is Only U.S. Market Losing Jobs

2025-01-22T03:13:35-06:00

Of the 150 largest U.S. apartment markets tracked by RealPage Market Analytics, only Jackson, MS was seeing annual job cuts as of December. The capital – and the most populous city – in Mississippi lost 700 jobs in the year-ending December 2022, which pulled the local employment base down by 0.3%. While most markets across the U.S. are seeing slow employment growth, Jackson lingers in negative territory. The job sectors that cut the most jobs during the past year were Education and Health Services (-1,800 jobs), Professional and Business Services (-1,100 jobs) and Leisure and Hospitality Services (-1,000 positions). The biggest job sectors here – Trade, Transportation and Utilities and Government – also saw jobs cuts in the year-ending December, but the losses were smaller (-700 jobs and -400 jobs, respectively). In the decade leading up to the COVID-19 pandemic, annual job growth in Jackson was minimal, averaging about 1,900 new positions or 0.7% each year. The economic downturn during the worst of the pandemic resulted in job cuts bottoming out at -37,000 positions annually in April 2020. During the economic comeback that followed, annual job growth peaked at 24,700 jobs in April 2021. While it looked like job growth had returned to pre-pandemic levels in late 2021 and early 2022, this market has been struggling to hold onto job growth since.

Single-Family Home Price Increases Continue to Deflate

2025-01-22T03:13:35-06:00

Home price increases are continuing to trend down as housing demand falls amid rising mortgage rates. The annual rate of acceleration has slowed over the past seven months and is now at the lowest level since September 2020. Still, home prices continue to increase at a robust clip on a year-over-year basis. Home prices fell 0.6% from October to November, according to the S&P CoreLogic Case-Shiller U.S. National Home Price Index, which measures average home prices across the nation. That was the fifth straight month-over-month decline. On an annual basis, home prices were still up 7.7% in November, down from the 9.2% annual jump in October and well below the all-time highs of 20.8% in March and April. This pattern of deceleration was apparent at a regional level. The S&P CoreLogic Case-Shiller 20-City Composite Index posted a 6.8% annual gain in November, down from 8.6% the previous month. All 20 cities in the index reported price declines in November 2022 compared to October 2022. Some of the biggest month-to-month declines occurred in the West region of the country, with the steepest declines occurring in Las Vegas (-1.8%), San Francisco (-1.7%) and Phoenix (-1.6%). On an annual basis, all 20 cities recorded decelerating prices, with the smallest changes in the West region. San Francisco (-1.6%) was the first city to record a year-over-year decline in home prices, followed by very small gains in Seattle (1.5%), Portland (3.9%) and Los Angeles (4.4%). The Southeast region, on the other hand, posted some of the nation’s biggest hikes, led by Miami (18.4%), Tampa (16.9%) and Atlanta (12.7%).

Multifamily Starts Slow as Permitting Picks Up Slightly

2026-03-04T06:52:46-06:00

The seasonally adjusted annualized rate of multifamily permitting (5+ units) in December increased by more than 7% from November’s rate to 555,000 units, according to the U.S. Census Bureau’s monthly report. However, multifamily permitting is down almost 22% from one year ago. Meanwhile, annualized multifamily starts fell almost 19% from last month’s pace and more than 16% from December 2021 to 463,000 units. Early trends appear to indicate that multifamily permitting and starts are beginning to drift closer to their pre-pandemic averages when annualized multifamily permitting hovered around 442,000 units from 2015 to 2019, while multifamily starts averaged 372,000 units annually over the same period. Since 2020, they have averaged 532,000 and 458,000 units, respectively. @include('site.elements.media.image', ['fileId' => 11860, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '572']]) Single-family permitting declined for the 10th consecutive month, from an annualized rate of 1.2 million homes in February of this year to just 730,000 units in December. That was the lowest annualized single-family permitting rate since July 2016. Year-over-year, single family permitting is down almost 35%. However, the annualized rate for single-family starts increased 11.3% from November to 909,000 units, but that was down from last year’s pace by 25%. Single-family starts have fallen below one million units for the sixth consecutive month. With fewer starts come fewer completions. Multifamily completions were about half the pace of November at 111,000 units and were down 7.5% for the year. Single-family completions are also slowing, dropping 8% from November to just over one million units. The number of multifamily units authorized but not started slipped 3.4% for the month to 144,000 units but that is still 20% greater than one year ago. Single-family units authorized but not started fell below 140,000 units for the first time all year. Despite slowing star...

East Coast Urban Cores Performing Better than West Coast

2025-01-22T03:13:35-06:00

While recovery in coastal markets is moderating, the urban core submarkets along the East Coast have generally fared better than neighborhoods along the West Coast. As of 4th quarter 2022, East Coast urban cores averaged annual effective asking rent growth of 6.1%, notably ahead of the performance in West Coast urban cores (4.9%). This has a lot to do with local economic makeup. In the tech-heavy West Coast markets, the work-from-anywhere trend of the past few years has had a strong influence on rent positioning. Meanwhile, the finance-heavy East Coast markets have seen more jobs return to the office and have therefore seen less of an impact from the remote movement. In the urban cores of East Coast markets like New York and Boston, rent growth remains solid at over 6%, while in the central submarkets in West Coast markets like Seattle and the Bay Area, rent growth is closer to 3% to 5%. For more information on the state of the East Coast apartment market, including forecasts, watch the webcast Market Intelligence: Q1 East Coast Region Update.

Annual Job Gains in Top Markets Continue Slowing

2026-03-04T06:52:46-06:00

Annual job gains in the top markets in the country continued to slow compared to recent activity but are still relatively strong. Economic headwinds like higher inflation, consumer and business caution, announced layoffs and a potential recession on the horizon are affecting employment totals. The total number of jobs gained in the top 10 markets RealPage tracks for the year-ending December was about 436,000 jobs less than the total for the same 10 markets in December of last year, according to the latest release from the Bureau of Labor Statistics (BLS). Additionally, the total for the top 10 markets is about 10% below last month’s total and nine of the top 10 were lower than last month. New York continues to lead the nation in annual gains but the addition of 289,500 jobs for the year-ending December is still trending downward. That total is about 25,000 fewer new jobs than November’s revised annual gain. Dallas returned at the #2 spot with an annual gain of 182,100 jobs, 6,100 jobs fewer than in November but 3,200 jobs greater than last December. @include('site.elements.media.image', ['fileId' => 11815, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '572']]) Los Angeles and Houston changed places from last month at #3 and #4 but while Houston was little changed from November’s total, Los Angeles added about 36,000 fewer jobs to payrolls in December than November’s total gain. Chicago, Atlanta, Boston, and Philadelphia remained in the #s five through eight spots again but each were about 12,000 to 23,000 jobs lower than last month. Still, their December gains of 86,000 to 132,400 jobs are quite strong. However, compared to last year’s December totals, they were down an average of about 47,000 jobs each. Seattle moved up to the #9 spot, dropping Phoenix from this month’s top 10 list with an annual gain of 80,500 jobs, about 2,000 less than in November. Riverside returned to the top job gains list at the #10 spot with an annual gain of 75,100...

Very Little Apartment Vacancy in McAllen/Brownsville

2025-01-22T03:13:35-06:00

The South Texas market of McAllen/Brownsville had a 2021 population of about 1,286,000, according to the latest data from the U.S. Census Bureau, climbing a modest 0.2% year-over-year and about 3.1% in the last five years. And yet, apartments are pretty sparce here with an existing unit count of less than 36,800 as of December 2022, translating to about one apartment unit for every 35 residents. Like much of the U.S., apartment occupancy has waned here over the last several months to stand in line with its five-year average of 94.9%, according to data from RealPage Market Analytics. That makes McAllen/Brownsville one of the only markets in the U.S. with a population over 1 million and a vacant apartment count consistently under 2,000. As of December, about 1,866 vacant apartment units existed in the market, though vacancy has gotten as tight as 680 units in 2021. Construction here runs very low as the market has grown its existing unit base by less than 10% in the last decade. Meanwhile, employment sits at about 453,000 jobs, as of November, a solid 30,000 job increase from the February 2020 level before the pandemic.

Fact or Fiction: Urban Core Submarkets

2026-03-04T06:52:46-06:00

Urban core performance is always a hot topic in market research circles. Large components of investment theses are built around urban core fundamentals – whether glass-half-full or glass-half-empty on those pockets of the country. With moderation in full effect at the start of 2023, lots of recent attention has been focused on urban core submarkets. As such, it’s worth the time to see which urban core narratives are based on fact – and which are based on fiction. Urban core apartments make up a large share of the national housing stock: Fiction RealPage estimates show that the overwhelming majority of multifamily housing exists in suburban areas. Of approximately 18.9 million market-rate apartment units across the U.S., just 2.1 million (or 11%) of those units belong to urban core submarkets. It’s also worth noting that most market-rate apartment units in the urban core skew toward higher rents based on their urban locale alone (i.e. Class A apartments). In turn, this means urban cores (generally speaking) exhibit a more homogenous set of properties than suburban areas which tend to have a mix of products. And that can increase competition among stabilized assets in years with lots of new construction. Which leads to our next point… Most ongoing construction is within the urban core: Fiction With only 11% of the nation’s existing stock belonging to urban cores, it’s practically impossible for most construction to fall within the urban core tranche of submarkets. Indeed, the bulk of ongoing construction belongs to suburban areas. At the end of 2022, some 578,000 suburban apartment units were under construction. By comparison, about 182,000 urban units are under construction. @include('site.elements.media.image', ['fileId' => 11741, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '572']]) But there is perhaps a bit of truth to heavier concentration of units underway in urban cores. The 182,000 units underway at the end of 2022 accounts for ne...

Markets with the Most Build-to-Rent Properties Under Construction

2026-03-04T06:52:46-06:00

As macroeconomic challenges climb, investor interest in the build-to-rent (BTR) space continues to increase. Some markets – mostly in the Sun Belt – have emerged as BTR hot spots, with at least 1,000 units under construction in each as of January 2023, according to data from RealPage Market Analytics. @include('site.elements.media.image', ['fileId' => 11698, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '572']]) Phoenix easily topped the list with roughly 11,800 units under construction as of January 2023. Additionally, another 17,200 or so BTR units are planned in the Phoenix market. Dallas is another big contender in the BTR market, with over 4,200 units currently under construction with another 4,600 planned and yet to break ground. Other notable performers in the BTR space are other Texas markets Houston, San Antonio and Fort Worth, which have emerged as construction hotspots with between 1,400 and 1,700 units underway. Two markets in the southeast with more than 1,400 BTR units under construction include Charlotte and Atlanta. Minneapolis is the only Midwest market on the list, with just over 1,000 units underway. When examining the largest BTR properties under construction across the 150 largest apartment markets, roughly 15,100 BTR units are expected to complete by the end of 2023. Of that number, here are the five largest projects underway, scheduled to wrap up construction by the end of the year. The density of these projects hovers around 300 units per property. @include('site.elements.media.image', ['fileId' => 11719, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '534']]) Bungalows on Sarival in Phoenix As previously reported, Scottsdale, AZ-based Cavan Cos. is working on the 338-home Bungalows on Sarival. Planned for completion in October 2023, Bungalows on Sarival is located on 30 acres at Bell Road and Sarival Avenue in Surprise, within the Peoria/Sun City/Surprise submarket. The Bungalows product line...

Leisure/Hospitality Jobs Remain Well Below Pre-Pandemic Levels

2025-01-22T03:13:35-06:00

The COVID-19 pandemic and subsequent measures to curb the spread of the virus in spring 2020 caused the U.S. labor market to shed jobs on a scale not seen since the Great Depression. In just two months (March 2020 and April 2020), the nation lost nearly 22 million jobs (-14%), according to seasonally adjusted data from the Bureau of Labor Statistics. It took nearly two and a half years to recoup those losses. Not until August 2022 did the number of U.S. jobs finally exceed the pre-pandemic level from February 2020. But the jobs recovery has varied greatly by industry. The hospitality industry has been particularly hard hit by the pandemic. Leisure/Hospitality Services lost nearly half of its job base, or 8.2 million jobs, at the onset of the pandemic, with accommodation and food services accounting for almost one-third of those loses. However, the hospitality industry is recovering. In fact, the industry has been adding jobs well above the average annual gain of roughly 260,000 jobs in the two years prior to the pandemic. In 2022, Leisure/Hospitality Services gained 946,000 jobs, the second-best performance among major industries, behind Education/Health Services. And yet, Leisure/Hospitality Services has still not recovered all the pandemic-induced loses. As of December, Leisure/Hospitality Services was still about 932,000 jobs short of the February 2020 level, the worst performance among major industries.

While Faded, Apartment Retention Still Solid in 2022

2025-01-22T03:13:35-06:00

While the U.S. apartment market logged negative demand in calendar 2022, marking the first time since the Great Recession, resident retention remains high. The number of expiring leases that renewed in calendar 2021 hit an abnormal peak, in a year when typical cyclical behavior was lost across several metrics nationwide. While the pace of retention faded a bit in calendar 2022, roughly 52.3% of residents renewed their leases, which was still the strongest rate the nation has seen in any other calendar year, with the one exception of the unparalleled highs of 2021. Calendar 2020 was also an abnormal year, with retention fading to a recent low of 50.7%, but the five-year average prior to that was 51%, several steps behind current trends. For more information on the state of the U.S. apartment market, including forecasts, watch the webcast Market Intelligence: Q1 U.S. Multifamily Update & 2023 Outlook.

December Pre-Lease Rate Surpasses 40%

2026-03-04T06:52:46-06:00

Much like the last couple months, student housing pre-lease rates for Fall 2023 continue to perform at their strongest level in years. Over 40% of student housing beds at the core 175 universities tracked by RealPage Market Analytics were pre-leased for the Fall 2023 academic year, marking the highest December reading on record by a wide margin. @include('site.elements.media.image', ['fileId' => 11613, 'attributes' => ['border' => '0']]) A typical December pre-lease rate runs just below 30% as students are just getting settled into the new academic year and not yet usually looking for next year’s housing. The bump seen from December to January is generally lower, given that students go home for the holiday break. @include('site.elements.media.image', ['fileId' => 11614, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '572']]) Across distances, properties within a half mile of campus reported the strongest pre-lease occupancy as of December at 42.3%. Properties within one half mile to one mile of campus reported the lowest pre-lease occupancy (though still historically strong) at 35.1%. Properties more than one mile from campus reported 37.9% pre-lease occupancy as of December. Annual effective rent change followed a similar pattern with properties within a half mile of campus claiming the strongest rent growth of 9.7% as of December. All other properties reported annual effective rent change of about 8.4% in December. Overall annual rent change stood at 9.3% in December – also a historically high rate. From a university level, several schools – particularly flagship state schools – reported ultra-strong pre-lease occupancy as of December. The flagship state schools in Tennessee, Arkansas, Wisconsin (Madison), North Carolina, Illinois (Urbana-Champaign), Kentucky, Michigan and Arizona had all already surpassed the halfway mark for pre-leased beds by December. In a final note of optimism for student housing operators: on-site occupancy is alre...

Top Five Markets with the Most Apartment Construction Activity

2026-03-04T06:52:46-06:00

Nearly a quarter of the nation’s apartment construction activity is rising in just five markets. While the pace of apartment construction seems to be up everywhere, markets with the most underway are typical heavy hitters: Dallas, Phoenix, New York, Austin and Atlanta, according to 4th quarter 2022 data from RealPage Market Analytics. With roughly 38,000 to 51,000 units under construction at the end of 2022, these markets account for 23% of all the construction activity rising in the nation. And that’s quite a feat, considering the U.S. has a record 971,500 units under construction. @include('site.elements.media.image', ['fileId' => 11581, 'attributes' => ['border' => '0']]) Dallas Apartment developers are building just over 50,000 units in Dallas, a volume that will increase the existing apartment base – already one of the largest nationwide – by another 7.5%. Dallas is no stranger to big apartment construction activity. In fact, this market has been a nationwide leader for a decade, with nearly 172,000 units built here during the past 10 years, the biggest volume in the U.S. during that time frame. But just to provide scope, the average annual pace of construction activity over the past 10-year period has been closer to 34,000 units. In fact, apartment construction in Dallas hit a five-year low in 2020 and it wasn’t until 2022 that development numbers really took off. Of the 50,000 units currently underway in Dallas, about half of those are scheduled to deliver in calendar 2023. Phoenix Nearly 47,000 new apartments are underway in Phoenix, with that supply set to increase the existing unit base by 12%. That’s one of the strongest percentage increases among the nation’s 50 largest apartment markets. This volume is not unexpected, given this market saw multifamily permits surge in 2020. Developers have already built over 75,000 apartments in this market in the past decade, with construction activity increasing the existing stock here by nearly a quarter in tha...

Top 10 Small Apartment Market Occupancy Leaders

2025-04-21T16:02:13-05:00

As apartment demand across the nation continues to slow and many markets are seeing occupancy ease, some stand-out small market performers are proving fairly resilient. The typically stable Midwest region led the nation’s top 10 performances as of December, but quite a few Northeast markets also made the list. Occupancy among the top 10 small markets averaged 97.8%, about 280 basis points (bps) above the U.S. norm, according to data from RealPage Market Analytics. As it has for a while now, Youngstown-Warren-Boardman, OH-PA ranked #1 in December with occupancy of 98.9%. This was also one of only two markets nationwide to see occupancy climb during calendar 2022. The annual increase here was 200 bps, while Midland/Odessa, TX logged a bump of 190 bps. In the Northeast, Springfield, MA logged a rate of 98.5%, despite occupancy fading a bit in the past year. In addition to ranking among the nation’s strongest occupancy performers, South region markets Johnson City/Kingsport/Bristol, TN-VA and Knoxville, TN also ranked among the nation’s leaders for annual effective asking rent growth in calendar 2022, with increases of about 13% to 14%. As of December 2022, effective asking rents in the top 10 small market performers for occupancy ranged from $868 (Youngstown-Warren-Boardman, OH-PA) up to $2,286 (Salinas, CA) per month.

Apartment Occupancy Lags in Urban Cores

2026-03-04T06:52:46-06:00

Urban core submarkets have endured quite the rollercoaster in apartment performance over the last three years. First, they were hit hard in the pandemic as residents fled and operators’ pricing power waned. Then, they rebounded notably. All the while, supply mounted. Today, occupancy across the nation’s largest urban cores lags the market average by about 80 basis points (bps), on average. That gap got as deep as 250 bps in early 2021 and has been slowly improving since. Today’s delta nearly matches the pre-pandemic norm of about 70 bps, according to data from RealPage Market Analytics. @include('site.elements.media.image', ['fileId' => 11572, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '572']]) In over three quarters of the nation’s largest apartment markets, urban core occupancy underperforms. Yet, some markets are feeling the difference more than others. @include('site.elements.media.image', ['fileId' => 11570, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '572']]) In Sacramento, urban core occupancy generally trailed the market average even before the pandemic, but the delta has widened since 2020. Construction in Central Sacramento has been prolific over the last year, adding 1,500 units in 2022 alone, accounting for an 8.8% inventory jump. Another 1,400 units are expected to deliver in 2023. Those two trends – historically soft occupancy compared to the market average and a recent construction surge – characterize all the urban cores on this list. Developers all across the nation had honed in on downtowns before the pandemic, and some markets were still working through lease up at those properties when demand plummeted in the back half of 2022. In only a handful of major apartment markets, urban core occupancy outperforms the market average. These markets all have one of two things in common: They’re home to a major university and subsequent student population (such as Riverside with the University of California a...

Permits Doubled YOY in Three Key Apartment Markets

2025-01-22T03:13:35-06:00

While multifamily permitting activity in the U.S. came down in November, numbers are still trending at decade highs. Among the nation’s 50 largest markets, nearly 453,000 multifamily permits were issued in the year-ending November 2022, based on an analysis by RealPage Market Analytics using data from the U.S. Census Bureau. That was an increase of 14.7% from the same period a year earlier. But the pace of permit issuances varies greatly by market. Among the nation’s largest markets, 29 saw multifamily permit authorizations pick up during the 12-months ending in November, while 21 markets saw a decline. The biggest surge was recorded in Atlanta, with roughly 19,700 multifamily permits issued during the year-ending November, which was a 223% increase year-over-year. Tampa and Indianapolis were the only other large markets where multifamily permit activity more than doubled during that period. At the opposite end of the spectrum, Nashville saw the deepest decline in multifamily permitting, with issuances falling 63.3% in the year-ending November. Also recording notable year-over-year declines were Cincinnati (-38.9%), Anaheim (-31.1%) and Fort Lauderdale (-30.0%).

Inflation Continues to Ease

2025-01-22T03:13:35-06:00

Inflation continued to slow on an annual basis in December, as rising interest rates are appearing to put a damper on price increases. For the sixth month in a row, inflation has been easing on a year-over-year basis. In December, inflation hit its lowest point in 14 months, but consumer price increases are still near 40-year highs. The Consumer Price Index (CPI) for All Urban Consumers, a measure of price changes commonly referred to as the inflation rate, was up 6.5% on an annual basis in December 2022, according to the Bureau of Labor Statistics. That was lower than the 7.1% annual increase in November and well below the 9.1% peak in June, which was the biggest year-over-year jump in prices since November 1981. Still, inflation has now remained at or near 40-year highs for 14 consecutive months, the biggest price surges since the severe economic recession of 1981-1982. Falling gas prices helped drive down inflation, with the price of gasoline dropping 9.4% from November to December, now down 1.5% from a year ago. Also contributing to the lower inflation rate, the cost of used cars and trucks plummeted 8.8% over the past year. Meanwhile, price increases in airline fares and food prices, while easing, remain stubbornly high. Shelter, which accounts for about one-third of the total CPI index, saw a 7.5% year-over-year price surge in December, the biggest annual gain in over 40 years.

Student Housing Outlook for 2023

2026-03-04T06:52:46-06:00

At the onset of the 2023 calendar year, there are more than a handful of datapoints that suggest student housing’s outlook is at its strongest relative position in many years. After all, the industry is just a few months removed from its highest-ever annual rent growth and occupancy reading. Equally important, the return to more normal university settings with in-person classes and extracurricular events back in full swing has brought with it a rejuvenated energy for operators within the space. The tailwinds are a welcomed development after the doldrums of 2020 and 2021 created numerous questions for the industry’s long-term outlook. Still, risk accompanies any commercial real estate sector and student housing is no different. With that in mind, here are the five key trends RealPage is monitoring for the student housing performance outlook in 2023 (and beyond). Recent Momentum Favors a Strong 2023 (and Likely 2024) The start of the academic year in 2022 brought with it never-before-seen rent growth and occupancy. Rent growth surpassed 4% when weighted throughout the leasing season (with the August standalone reading achieving nearly 7%), according to data from RealPage Market Analytics. @include('site.elements.media.image', ['fileId' => 11477, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Fall 2023 performance has been equally striking. Pre-lease occupancy through December is easily at its highest mark on record for the month with nearly 38% of all beds already leased for the upcoming Fall semester. And remarkably so, 30 of the RealPage175 campuses have already leased more than 50% of their off-campus beds for the upcoming academic year. Four schools (UT-Knoxville, Angelo State University, the University of Arkansas and the University of Wisconsin – Madison) already sit at or above 90% pre-leased for the upcoming year). @include('site.elements.media.image', ['fileId' => 11478, 'attributes' => ['border' => '0', 'width' => '1020', 'h...

Small Apartment Markets with Big Inventory Growth

2025-07-07T10:46:10-05:00

As U.S. apartment construction drives forward at a brisk pace, some smaller apartment markets are scheduled to see big inventory jumps in the near term. A lot of these markets are vacation hot spots that performed well during the initial year of the COVID-19 pandemic, when remote workers migrated to towns with attractive lifestyle options. The small market with the biggest inventory increase expected nationwide is Huntsville, AL, where a little over 6,000 units will grow the existing unit count by a substantial 16.7%, according to 4th quarter data from RealPage Market Analytics. That’s more than three times the national inventory change average. Also scheduled to see significant inventory growth of more than 15% are Provo-Orem, UT, Colorado Springs, CO and Boise City, ID. Three Florida markets grace the list of small market inventory growth leaders, with increases of 14.1% expected in Lakeland-Winter Haven and growth just shy of 11% expected in the small beach towns of North Port-Sarasota-Bradenton and Port St. Lucie/Sebastian/Vero Beach. The Midwest market of Sioux Falls, SD should see its existing base increase by 12.5%, while southern darlings Asheville, NC and Savannah, GA are scheduled for growth of about 9% to 10%.

U.S. Labor Market Remains Stronger Than Expected

2026-03-04T06:52:46-06:00

The red-hot U.S. job market is showing signs of cooling amid rapidly rising interest rates. While U.S. job growth continued to ease in December, it remains strong by historical standards, registering well above pre-pandemic norms. In addition, the unemployment rate remains at record lows. @include('site.elements.media.image', ['fileId' => 11440, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Roughly 223,000 employees were added to payrolls in December 2022, according to the Bureau of Labor Statistics (BLS). That was a better result than the 200,000 jobs economists were projecting for the month. The number of jobs added in December was the nation’s weakest monthly performance since December 2020 when the number of jobs shrank. However, the recent job gains were still well above the average of around 190,000 jobs added each month from 2015 to 2019. For 2022 overall, the nation gained more than 4.5 million jobs, a 3% year-over-year increase. That was the second-highest annual total (after 2021) in records that go back to 1940. @include('site.elements.media.image', ['fileId' => 11427, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Downward revisions to October 2022 data showed 21,000 fewer jobs were added than previously reported, down to 263,000 jobs. The November 2022 job growth number was revised down by 7,000 jobs, to 256,000 jobs. The U.S. economy has recovered all the net jobs lost during the COVID-19 pandemic. As of December, the nation had over 1.2 million more jobs (+0.8%) compared to the pre-pandemic employment level from February 2020. Jobs by Industry @include('site.elements.media.image', ['fileId' => 11428, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']])Most major employment sectors gained jobs in December. The biggest monthly job gains occurred in Education and Health Services and Leisure and Hospitality Services. Professional and Business Services and Information wer...

Three Types of Markets That Could Struggle in 2023

2026-03-04T06:52:46-06:00

Last week, we shared three types of markets that could be well-positioned for the 2023 calendar year. With uncertainty at its highest level in some time, it’s reasonable to look at a select few metro profiles through a glass-half-empty lens (or at least through a lens of additional scrutiny). What market profiles do we have concerns about heading into 2023 then? There are a few, but these three market compositions have the bigger challenges ahead. Market Profile #1: Big Inventory Growth Markets New supply is sometimes used as a catch-all downside risk factor that (unjustly) undervalues markets that have concurrently strong demand. Markets across the Sun Belt have been perennially written off as “oversupplied” when in reality their annual average rent growth over the past decade has actually outperformed that of the Gateway markets. Still, that doesn’t mean there isn’t some downside risk present in high supply markets. That’s mostly true in periods such as today – that is, moderating demand and growing economic uncertainty. Should the nation enter a period of job loss, that could be a severely limiting factor in near-term performance. But the risk is further elevated due to the sheer scale of supply slated to deliver in many markets today. This list shows the nation’s top 15 markets based on expected inventory growth in the coming 12 months. @include('site.elements.media.image', ['fileId' => 11407, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Double digit inventory growth in places like Colorado Springs, Huntsville and Sioux Falls would be a lot to absorb even in years with rock solid demand. In places like Boise, we’ve already begun to see how quickly normalizing demand patterns coupled with immense supply pressure has resulted in performance deterioration. In fact, Boise now ranks in the nation’s bottom 10 metros for annualized rent growth with a huge 440 basis point cut on rents in 4th quarter 2022 alone. In all fairness, Boise...

Apartment Markets Expecting the Most Inventory Growth

2025-01-22T03:13:35-06:00

Apartment construction continues at a record pace across the U.S. and some markets are in store for significant inventory jumps. Among the nation’s largest 50 apartment markets, 10 are slated to see inventory grow 7.6% or more in the near term, according to 4th quarter data from RealPage Market Analytics. All 10 of these markets are in the South or the West region. While Nashville has regularly topped the nation’s apartment construction leaderboard in the past few years, there are now more units underway here than ever before. Over 26,700 units are underway, which will grow the market’s exiting inventory base by a stunning 15.4%. That’s three times the national average. Charlotte and Austin will also grow their inventories by a staggering rate of about 15% each. The nearly 32,500 and 42,000 units underway in Charlotte and Austin, respectively, also mark a lifetime peak. Raleigh/Durham, Salt Lake City, Phoenix and Jacksonville will all grow their inventories by over 10% with prolific building underway in those markets.

Student Housing Deliveries Jump in Fall 2023

2026-03-04T06:52:46-06:00

After student housing deliveries fell to an abnormally low rate in Fall 2022, the coming school year should see a return to more usual completion volumes. Just 30,000 new student beds were delivered in the Fall 2022 school year, marking the slowest pace since at least the Great Recession. For Fall 2023, construction is scheduled to increase to nearly 40,000 beds, signaling a return to pre-pandemic norms. @include('site.elements.media.image', ['fileId' => 11003, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) While scheduled supply for Fall 2023 is still roughly 20% below the pre-pandemic average, it’s a step up from Fall 2022 levels. Plus, early indicators point to more of the same in Fall 2024. Scheduled deliveries in Fall 2023 are focused in flagship state universities that tend to reappear on the leaderboard for student housing construction leaders. Interestingly, the majority of schools with 1,000 beds or more expected next year are located in the urban cores of large metro areas. @include('site.elements.media.image', ['fileId' => 11004, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Many of the schools on this list are in Sun Belt markets, which in general saw a big influx of population growth in recent years, resulting in an increase in the share of investment activity in this region. Additionally, these markets also have big blocks of apartment construction activity under way on the conventional side of the market. With the exception of Boise State University, the schools with the biggest block of new beds under way for Fall 2023 are all on the larger side, with enrollment of roughly 40,000 to 60,000. The largest is the University of Central Florida, with enrollment closer to 70,000. Boise State enrollment is just a shade under 26,000 students. Enrollment growth has been notable recently in most every school on this list, with the University of Central Florida ranking as the outlier. Enrollment sank...

Apartment Demand Turns Negative for the First Time Since 2009

2026-03-04T06:52:46-06:00

Net demand for apartments ended in negative territory for calendar 2022. But, unlike the last time demand went negative in 2009, renter turnover was curiously low in 2022. Instead, the problem was at the front door: Demand for new leases all but evaporated due to low consumer confidence and high inflation. @include('site.elements.media.image', ['fileId' => 11379, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) In other words: After an historic wave of household formation and relocations in 2021, Americans chose to mostly stay put in 2022. We’ve never before seen a period like this – weak demand for all types of housing despite robust job growth and sizable wage gains. It wasn’t just apartment demand that shot up in 2021 and plunged in 2022. The same pattern played out to varying degrees in other rentals and in for-sale homes. To address some common myths we hear about weak rental demand: 1. No, there’s no massive wave of move-outs. Renter turnover throughout 2022 held at historically low levels – topped only by 2021. Turnover is gradually normalizing, but it’s still low. 2. No, there’s no big jump in unpaid rent. In November 2022 (the most recent available period), 95.7% of market-rate apartment renters paid rent on time. That was up 0.6 percentage points year-over-year. 3. No, there’s no indication renters are doubling up to any significant degree. That may occur later, but as the publicly traded apartment REITs all reported in their last earnings call, it’s not a major factor yet. 4. No, there’s no “flight to affordability” – meaning renters aren’t moving down from more expensive units or markets into more affordable units or markets. The drop in demand came across all price points and in essentially all markets. So what, then, is the issue? The root challenge is simple: Consumer confidence in low. According to the University of Michigan’s consumer sentiment index, confidence dropped even lower in 2022 than it did during the Gre...

Inflation Continues to Outstrip Wage Increases

2025-01-22T03:13:35-06:00

Soaring costs for consumer goods and services have created financial pressures for many U.S. households. Even though wages are growing at one of the fastest paces in decades, it hasn’t been enough to keep up with skyrocketing price increases. Over much of the past 10 years, wage growth exceeded or kept pace with inflation. During that period, wages generally increased 2% to 3% annually while the inflation rate remained below 3%, according to data from the Bureau of Labor Statistics. However, all that changed at the onset of the COVID-19 pandemic in early 2020. The nation posted record wage growth of 8% in April 2020, the result of a very tight labor market, as pandemic-related restrictions put many workers on the sidelines. During that period, demand for goods and services dropped dramatically, leading to eroding price increases. Since reaching that milestone in April 2020, prices have been soaring due to pent up demand and supply chain issues, with inflation hitting near 40-year highs over the past year. In November 2022, inflation was up 7.1% on an annual basis, while average hourly earnings of all employees on private nonfarm payroll rose 5.1%. Despite recent wage increases, inflation has wiped out paychecks for many Americans. When taking into account the impact of rising consumer prices, average hourly wages actually declined 2% in the year-ending November.

5 Big Stories on Rental Housing You Missed During the Holiday Break

2026-01-15T14:26:30-06:00

Here are five big stories on rental housing you might have missed during the holiday break. If you're like me, you tried to stay away from the news as much as possible during vacation time … but some big headlines were hard to ignore! 1. Multifamily Construction Numbers Nearing All-Time Highs Multifamily construction jumped to 916,500 units, the highest since the all-time peak of 919,700 set back in August 1973. New multifamily starts also remained elevated in November at 48,300 units, in line with most of 2022 and up about 10k from the same time in 2021. However, new multifamily permitting is finally cooling somewhat (43k units, smallest number in nine months and down 5k from one year ago), so we should see starts begin to wane in the coming months. The big construction numbers have the housing bears out in full force. But remember these numbers deserve context. It’s a lot, yes, and supply will almost certainly exceed demand in 2023. We’ll undoubtedly see choppiness in market performance due to supply in 2023 and into 2024. But it’s helpful to look at supply not only in raw totals, but in growth rate percentage. By that measure, supply growth is half of what it was in the 1970s. And it’s also important to look at rent levels for new construction, which remain so high due to construction costs that most of the impact will be to fellow Class A units fighting for high-income renters. 2. New Fed Study Confirms Our Reporting on Rent Inflation The Cleveland branch of the Federal Reserve released a paper showing significant deceleration in new-lease rent growth and noted this was an early indicator that rental inflation would indeed cool significantly. For most rental housing pros, the Fed is just stating the obvious here. But for outsiders looking at rents and owners’ equivalent rents (OER) as major drivers for inflation, this is a big deal. 3. Congress Fails to Pass Increased Support for Affordable Housing Congress passed a $1...

Three Types of Apartment Markets That Could Outperform in 2023

2026-03-04T06:52:46-06:00

The arrival of the 2023 calendar year brings with it lots and lots of questions. Only time will tell the degree to which downside risks – a four-decade supply peak, negative annual absorption in the preceding year and brightly flashing red light recession indicators, to name a few – ultimately influence 2023 market performance. In such periods of uncertainty, it can be difficult to pinpoint individual markets that will outperform. It is possible, though, to highlight certain market profiles that appear to be best positioned to withstand mounting pressures. With that in mind, we have identified these three market profiles that appear to be well-positioned to outperform heading into 2023 – and potentially beyond. Market Profile #1: College Towns There is a lot to like about college town markets during highly uncertain years. Large universities offer a unique economic anchor that helps these areas withstand outside economic pressures such as job cuts. While students themselves offer a steady base of demand, it’s more about the multiplier effect than the students themselves. Student and university support roles generate further spillover benefits for local economic growth. The return of a normal college year has brought tons of students back to campus. That can be seen within purpose-built off campus student housing which just continues to set records for both rent growth and occupancy. Even within conventional multifamily housing though, college town market profiles have been performing ahead of national norms of late. @include('site.elements.media.image', ['fileId' => 11314, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) A weighted average across 10 key U.S. college town markets shows that these have maintained more resilience in the face of a national performance slowdown in recent quarters. For instance, in 4th quarter 2022, college town markets saw positive quarter-over-quarter rent growth while national rents were cut to the tune...

Miami Records Lowest Unemployment Among Major Markets

2025-01-22T03:13:35-06:00

Unemployment across the U.S. continues to register at historically low levels. As of November, the nation’s unemployment rate averaged 3.4%, according to the Bureau of Labor Statistics. That was the third consecutive month below 3.5% and the ninth consecutive month below 4%. For comparison, during the two years leading up to the COVID-19 pandemic (2018-2019), unemployment registered between 3.3% and 4.5%, averaging 3.8% nationally. Prior to that period, unemployment hadn’t fallen below 3.5% since the late 1960s. Among major U.S. markets, Miami recorded the lowest unemployment rate in November at 1.5%, followed by Minneapolis at 1.9%. Miami and Minneapolis even edged out Salt Lake City (2%) which usually has the lowest unemployment rate nationally. Also recording an unemployment rate below 2.5% was San Francisco (2.2%) and San Jose (2.4%). On the flip side, Las Vegas posted the highest unemployment rate in November, at 5.6%. Los Angeles and Chicago were also among the bottom performers in November, with unemployment at 4.5% and 4.4%, respectively. The most improved unemployment rates in November were seen in Miami, Los Angeles, Newark and New York, with each posting year-over-year declines of 160 to 180 basis points. The weakest performances were in Indianapolis and Portland, where unemployment rose around 50 basis points over the past year.

Phoenix’s Apartment Rent Growth Slips to Decade Low

2026-03-04T06:52:46-06:00

The Phoenix apartment market spent half of the past decade as an outperformer. Recently, however, the market has been decelerating at one of the fastest clips nationwide. Over the past four months, annual rent growth in Phoenix has underperformed the U.S. average, which has not happened since 2013. And occupancy in Phoenix is at its lowest point in eight years. Additionally, a robust development pipeline could further hamper apartment performance in the near term. @include('site.elements.media.image', ['fileId' => 11135, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) From 2015 to 2019, annual rent growth in Phoenix topped U.S. norms by an average of 290 basis points (bps), according to data from RealPage Market Analytics. And from May 2021 to February 2022, that gap widened to more than 1,000 bps. It was quite a change then, to see rent growth slow down so significantly in the rest of the year. In November 2022, annual rent growth in Phoenix slipped to just 0.7%, well below the national average and second-to-last among the nation’s top 50 markets, only ahead of Las Vegas (0.6%). The last time annual rent growth in Phoenix slipped below the 1% mark, it was 2012. @include('site.elements.media.image', ['fileId' => 11129, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Rent change in Phoenix varied by product class. In the year-ending November, Class A product saw rent growth above the market average, at 2.3%. Meanwhile, Class B units posted a 0.6% increase, while operators in C units cut rents 0.7% year-over-year in November. All of Phoenix’s 23 submarkets recorded rent change at a much slower pace than a year ago. The weakest annual performance in November was seen in North Glendale where rents were cut 5.9%. West Phoenix continued to lead the market with a year-over-year rent increase of 13.7%, marking the 18th consecutive month of double-digit annual rate hikes in that submarket. @include('site.elements.media...

Only 600 Available Apartment Units in Portland, ME

2025-01-22T03:13:35-06:00

Portland has shared in some serious demographic tailwinds in the last few years. No, not that Portland, OR. We’re talking about Portland, ME. According to the most recent population estimates from the U.S. Census Bureau, the Portland-South Portland market had a 2021 population of about 548,000. Meanwhile, just 28,200 apartment units exist, translating to one apartment unit for every 19 residents. Apartment occupancy in Portland runs very tight, averaging 97.6% over the last five years, according to data from RealPage Market Analytics. As of November, occupancy here stood at 97.9% after falling from recent high of 99.1% in May 2022. As of November, Portland’s tight occupancy translated to just 600 vacant units across the entire market.

Largest Apartment Projects Scheduled to Complete in 2023

2026-03-04T06:52:46-06:00

The U.S. apartment market is on track add nearly 3,300 communities containing roughly 590,000 units in 2023. That is the largest delivery volume since RealPage began tracking the U.S. apartment market 30 years ago. The large number of units coming online next year is boosted by some massive individual projects. The five largest conventional apartment projects scheduled to deliver in 2023 are being built on the east and west coasts and all of them are mid- to high-rise communities. @include('site.elements.media.image', ['fileId' => 11350, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Here’s a look at the five largest projects scheduled to deliver next year. 1200 Stewart The largest apartment community scheduled for completion in 2023 is a 1,050-unit apartment community in Seattle. Vancouver, Canada-based Westbank is building two 48-story residential towers in the Denny Triangle Urban Center Village near Amazon’s headquarters in Downtown Seattle. The 1.2 million-square-foot project, dubbed 1200 Stewart, will include a three-story commercial podium with nearly 150,000 square feet of retail space anchored by a Trader Joe’s grocery store. In addition to the residential towers, the project will also include a four-story residential low-rise. The development will also feature creative workspace, a Live Nation music venue and a galleria connecting Stewart Street and Denny Way, incorporating a Boeing 747 as useable space. Westbank began construction on the project in June 2018 and the delivery date has been pushed out several times due to delays caused by strikes and labor shortages as well as global supply chain issues. Now, construction is scheduled to wrap up in November 2023. Redwood Place Newport Beach-based Irvine Company is building a 944-unit apartment community in the San Jose market. The project, which broke ground in 2019, is on Indian Wells Avenue near the intersection of Bayshore Freeway (US-101) and Lawrence Expressway in North...

Rent Hikes in Wilmington Trend Above U.S. Norm

2025-01-22T03:13:35-06:00

The small coastal town of Wilmington outpaced the national norm for annual effective asking rent growth in November 2022. According to data from RealPage Market Analytics, operators pushed effective asking rents up 12.4% in the year-ending November. This was one of the best showings nationwide and was nearly twice the pace of the U.S. average of 6.5%. Additionally, Wilmington's latest performance marked the 25th consecutive month of rent increases above the U.S. norm. Over the last 12 months, less than 500 units were absorbed in Wilmington as 1,308 units completed. Occupancy landed at 94.8%, backtracking 40 basis points (bps) quarter-over-quarter and 300 bps year-over-year. Still, average monthly rent in the North Carolina port city with only 26,912 units sat at $1,546 as of November, just behind Charlotte-Concord-Gastonia ($1,588) and Raleigh/Durham ($1,550), but above neighboring Myrtle Beach-Conway-North Myrtle Beach ($1,478).

These Five States Are Building the Most Apartments

2026-03-04T06:52:46-06:00

While apartment construction activity is up almost everywhere nationwide, five states are building nearly half the nation’s total volume of supply. The five states with the largest number of apartments under construction as of 3rd quarter 2022 include Texas, Florida, California, North Carolina and New York. Combined, these markets are building 45% of the nation’s apartments. @include('site.elements.media.image', ['fileId' => 10628, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '592']]) Texas It’s no surprise that Texas tops the nation for apartment construction activity. Two of this state’s largest five apartment markets – Dallas and Austin – regularly top building and permitting activity rankings. That was the case in 3rd quarter, as nearly 160,000 units are under way in the Lone Star State. This will increase the existing stock in Texas by 6.3%. Dallas construction numbers accounted for nearly 50,000 units, while builders are developing nearly 40,000 units in Austin. Those are two of the nation’s biggest metro-level volumes of new supply, with the perpetually busy New York rounding out the top three. Austin is also a top-ranking market for percentage growth, with new stock increasing the inventory base there by 14.1%. Houston also made the national top 10 ranking, with over 28,000 units under way. Fueling demand for nation-leading apartment development, Texas has added a record number of new residents recently. According to the most recent estimates from the U.S. Census Bureau, Texas gained more new residents than any other state in the nation in the year-ending July 2021. Total population change from July 2020 to July 2021 was roughly 310,300 residents. The big bulk of that was in domestic migration with 170,000 new residents coming into the state. This was one of the biggest domestic migrations in the nation, after only Florida. International migration was also big in Texas (second nationwide, with only Florida seeing more) at over 27,000...

Apartment Rents Fall Again in November as Leasing Traffic Remains Soft

2026-03-04T06:52:46-06:00

Apartment rents declined in November 2022 for a third consecutive month. And although fall/winter cuts were very normal seasonally prior to COVID, this isn’t just normal seasonality in 2022. Cumulative cuts over the last three months are the largest for any three-month period since 2010, with the exception of the 2020 lockdown period. Same-store effective asking rents for new leases nationally fell 0.59% in November. That marked the third-largest month-over-month cut since 2010, topped only by April and May 2020 at the height of pandemic lockdowns, and a hair deeper than October 2022’s reduction. @include('site.elements.media.image', ['fileId' => 10814, 'attributes' => ['border' => '0']]) The cuts come as apartment occupancy has fallen a bit below pre-pandemic highs due to weak new-lease demand. Occupancy as of November 2022 remained high at 95.1%, but that’s below November 2019’s mark of 95.6% after falling 20 bps in the last month and 240 bps year-over-year. Interestingly, the issue is not renter turnover. In fact, turnover in November 2022 was the second-lowest for any November on record – topped only by November 2021. But the issue is at the front door. Leasing traffic among prospective renters has plummeted throughout 2022, and November 2022 ranked as the weakest for any November in eight years. There’s little evidence that renters are doubling up to any significant degree (at least not yet) due to affordability – a non-trend also noted by publicly traded REITs in recent earnings calls. There is very little net new demand for any type of housing right now, despite strong growth in jobs and wages. We’ve never before seen new-lease apartment demand freeze up during a period of solid job gains like it has this year. We’re on track to end 2022 with the weakest net apartment demand since 2009. Low consumer confidence and weak household formation tells us Americans are in “wait and see” mode. On a year-over-year basis, national effective rent growth for new lea...

West Region Markets Have Nation’s Lowest Cap Rates

2025-01-22T03:13:34-06:00

Cap rates for apartments remain historically low and are the lowest among major property types. Based on data from Real Capital Analytics, cap rates among RealPage Market Analytics’ top 150 apartment markets averaged 4.6% during the year-ending 3rd quarter 2022, down 19 basis points year-over-year. Among regions, the West posted the lowest average cap rate of 4%, while the highest average cap rate was in the Midwest, at 5.1%. Among the nation’s 50 largest markets, the four lowest cap rates were all in the West, with the lowest cap rate in Phoenix (3.6%), followed by San Jose (3.7%), San Francisco (3.8%) and Los Angeles (3.8%). Raleigh (3.9%) was the only large market outside of the West Region with a cap rate below 4%. On the other hand, some of the highest cap rates nationwide were in Midwest markets. Cincinnati and Cleveland posted average cap rates of around 5.5%, followed by Detroit (5.3%).

Loss to Lease Markets to Watch in 2023

2026-03-04T06:52:46-06:00

With market dynamics quickly changing and loss to lease spreads subsequently tapering, RealPage has flagged a few key markets where loss to lease trends should be monitored in the coming six to 12 months. At the national level, loss to lease has been a big discussion point among owner/operators and covered quite thoroughly throughout the REITs public earnings calls. RealPage has provided lots of additional coverage on loss to lease trends, too. If still unfamiliar with the term, then it can be easily summarized as the gap between today’s market asking rents for new leases and the average in-place rent (signed rental rate of existing leases). As of late, the big talking point has been the significant pullback in loss to lease runway. After starting the year around 11% loss to lease, today’s estimated gap runs around 6%. But not all markets behave in the same manner. The pace at which some markets recovered from their 2020 low point (some markets quickly, some markets slowly, and even a few markets that never saw rent cuts and therefore needed to recover in a traditional sense) has been a key defining characteristic over the past two years. In turn, the pace of recovery in many markets has been a tell-tale sign for loss to lease metrics. @include('site.elements.media.image', ['fileId' => 10637, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '144']]) Excluding rent-controlled metros*, loss to lease gaps run highest among the big Florida metros. South Florida (particularly Miami, but also Fort Lauderdale and West Palm Beach), Orlando and Tampa all rank well ahead of the nation’s average loss to lease. Another (perhaps surprising) sprinkling of higher-than-typical loss to lease markets can be found in the Midwest such as Columbus, Indianapolis and Kansas City. Loss to lease estimates as of October put these markets into double digit (10%-plus) loss to lease range with the Florida markets comfortably setting the pace nationally. How does this affe...

The Five Largest Apartment Transactions in 3rd Quarter 2022

2026-03-04T06:52:46-06:00

Rising interest rates have dampened apartment investment activity, but sales remain solid. Though current sales were below the peak from three quarters ago, transactions have remained at 20-year highs for much of the past two years. @include('site.elements.media.image', ['fileId' => 10558, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '450']]) Roughly 2,300 apartment properties changed hands at a value of nearly $74.1 billion during 3rd quarter 2022, according to Real Capital Analytics (RCA). Overall sales volumes during the quarter were down 17% year-over-year and were well below 4th quarter 2021 levels when around 5,000 properties changed hands for nearly $162.6 billion, the result of pent-up demand following the onset of the pandemic. But recent activity is still well above the $57.8 billion quarterly average over the past five years. The average price per unit also remained high, at $240,829 in 3rd quarter, registering above $200,000 for five consecutive quarters. Prior to 2021, the per unit pricing never exceeded that threshold and averaged $185,000 over the past five years. Meanwhile, cap rates for 3rd quarter transactions remained at historic lows, averaging 4.6%, down 20 basis points (bps) year-over-year. In addition, multifamily cap rates during 3rd quarter remained the lowest among major property types. @include('site.elements.media.image', ['fileId' => 10559, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) On an annual basis, transactions in the year-ending 3rd quarter 2022 totaled more than $400.6 billion with around 12,800 properties trading hands. Looking back over the past few years, sales dipped in calendar 2020 due to the pandemic, when about 7,200 apartment communities were sold for nearly $147.5 billion. That was well below the volume from 2019, when 9,000 properties traded hands for $193.4 billion. In 2021, transactions jumped back up again, with roughly 12,900 properties trading hands at a value...

Multifamily Delivery Delays Continue as Pandemic Labor & Material Shortages Persist

2025-01-22T03:13:34-06:00

The COVID-19 pandemic has affected many things since its onset nearly three years ago. Many imbalances created in 2020 persist, including material shortages from supply chain disruptions as well as a tight labor market, especially in the building trades. This dual phenomenon has led to increased delays in annual multifamily deliveries, as builders continue to struggle with construction worker shortages and issues getting building materials such as lumber and appliances. The old multifamily industry adage of roughly 10% of deliveries being pushed into the following year held true at the beginning of the pandemic, as estimated annual supply delays averaged around 9% between 4th quarter 2018 and into 3rd quarter 2021, according to data from RealPage Market Analytics. However, beginning in 4th quarter 2021, estimated annual supply delays almost doubled, averaging around 17%, peaking in the year-ending 2nd quarter 2022 at 18.3%. With an estimated 17.6% of anticipated deliveries delayed in the year-ending 3rd quarter 2022, we are seeing some moderation from that peak. However, it remains to be seen if this moderation will continue, as the pandemic disruptions persist, and construction delivery delays remain well above historic norms.

St. Louis Holds on to Apartment Demand and Rent Growth

2026-03-04T06:52:46-06:00

The St. Louis apartment market continued at its typically stable pace in 3rd quarter, holding onto demand and logging historic rent growth while fundamentals softened in many markets in the U.S. @include('site.elements.media.image', ['fileId' => 10510, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Just like what was seen across much of the nation, demand faded in St. Louis in 3rd quarter 2022. However, this typically stable Midwestern market maintained positive absorption in the July to September time frame, logging demand for just 171 units. While not spectacular, the fact this market absorbed anything when many markets suffered net move-outs is significant. Thus, St. Louis managed to hold onto annual net absorption of 1,534 units. Fueling demand, the employment base in St. Louis is growing, though slower than some other markets across the nation. St. Louis added 27,200 jobs in the year-ending September, which grew the employment base by 2%. This was about half the national average growth pace. Professional and Business Services added the most jobs, increasing by over 11,000 positions. Also logging strong growth of over 7,000 jobs were Leisure and Hospitality Services and Mining, Logging and Construction sectors. The most recent population data from the U.S. Census Bureau puts the population of St. Louis at just under 3 million as of 2021, down 0.3% for the year. The deepest residential declines occurred in the St. Louis City and East County areas, which line the Mississippi River divide between Missouri and Illinois. While RealPage submarket definitions do not precisely line up with Census divisions, this area is covered by the St. Louis City and Northeast St. Louis County submarkets, which claimed the market’s two worst occupancy performances in October, with rates between 90% and 94%. @include('site.elements.media.image', ['fileId' => 10502, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) While St. Lou...

As Expenses Surge, Operators Focus on Cost Controls for 2023

2026-03-04T06:52:46-06:00

In more than a decade of meeting with rental housing owners and managers during budgeting season, I can’t recall any serious discussions around expenses prior to COVID-19. No one ever asked about it. Everyone pretty much just assumed 3%-4% expense growth.@include('site.elements.media.image', ['fileId' => 10482, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) But that’s changed dramatically in the last couple years. Now it’s a major topic of conversation as operators wrestle with the key theme for the market going forward: how to drive more efficiencies without sacrificing performance or resident satisfaction. That was less of a focus when apartments saw massive demand and big rent growth, but market conditions have cooled dramatically in 2022 – which heightens the focus on expense control for 2023 budgets. Here are six big areas where we’re seeing outsized expense growth: turnover costs, insurance, operating/maintenance, administrative, utilities and payroll. Insurance, utilities and payroll will be the bigger-ticket items for most – and you can add rising property taxes in there as well for many states. @include('site.elements.media.image', ['fileId' => 10483, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Some of these expense categories could see some moderation as (hopefully) inflation cools. But some will not – notably property insurance, which will likely go up much more in 2023 (especially in places like Florida and Texas) as insurance companies push up rates and some are reportedly exiting certain states altogether. And unlike most other expense categories, insurance isn’t one where operators can find creative efficiencies. Payroll will be an interesting one to watch as the labor market remains tight (for now). Many operators are driving toward centralization – pushing back-office tasks offsite or automating them. That helps reduce the number of people needed on site. But those remaining on site (foc...

10 Common Themes Amongst Apartment REITs In 3Q22

2025-04-21T15:52:57-05:00

As fall earnings season comes to a close, we take a look at the 10 themes apartment REITs and REIT analysts discussed. From economic pressures to resident retention, here are the themes that illustrate how apartment performance has changed, including a few refreshed themes from fall 2021 earnings season, and what it means as we head into 2023. 1. New and renewal lease rent growth is beginning to invert. As we head into the slower winter leasing season, new lease rent change has moderated considerably (as is consistent with RealPage Market Analytics data) while renewal lease rent change has continued to increase leading to lower loss to lease heading into 2023 2. Resident retention remains elevated. As leasing traffic has cooled and we return to more normal seasonal patterns, more residents are choosing to renew their leases, bolstering back-end occupancy and allowing for stronger rent rolls heading into the slow winter leasing season. 3. Move-outs to home purchase are down year-over-year. The Fed’s interest rate increases have pushed 30-year mortgage rates above 7%. Consequently, would-be first-time home buyers have pivoted, keeping many in the renter pool and bolstering resident retention rates. 4. Concessions are back… sort of. Overall concession value of about 2-4 weeks of free rent has remained fairly consistent throughout 2022. However, REIT executives reported strategic use of concessions to move certain unit types, compete with nearby lease-up properties or as a marketing tool to boost front-end leasing. 5. Resident incomes are up. REIT executives, echoing our own data and analysis, confirm that their resident incomes are up, and despite increasing rents, that rent-to-income ratios remain very healthy in the low 20% range. This is well below the long-held 33% affordability threshold and illustrates that market rate renters are keeping pace with market rate rent increases. 6. Resident payments remain healthy. Resident payments and rental col...

Ten Thoughts on October’s CPI Report and the Role of Rents

2026-03-04T06:52:46-06:00

Here are 10 thoughts on the October CPI report and the critical role of rents – now and going forward. 1. We continue to see CPI’s rent data lagging behind real-time rents – and not just for new leases. But since new leases are the early indicator, let’s start there: Note from this first chart that while market-rate apartment rent and CPI rent trends (YoY) are converging, they are both moving rapidly in OPPOSITE directions due to a well-established lag effect – an issue the Fed is, of course, aware of. (More on embedded/in-place rent in a moment.)@include('site.elements.media.image', ['fileId' => 10390, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) 2. Asking rent growth month-over-month peaked in July 2021 for market-rate apartments, and renewal rent growth peaked one year later in July 2022. Vacancy has been rising since March, so rent growth is cooling significantly. 3. Month-over-month asking rents for new leases dropped in each of the past two months, and renewal rent bumps are shrinking (and will continue to shrink) as operators focus on retaining residents to protect occupancy and cashflow. As a result, embedded rent growth (or in-place rents) among market-rate apartments has peaked and turned.@include('site.elements.media.image', ['fileId' => 10389, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) 4. Yet the CPI shows October saw a new peak in year-over-year embedded rent growth, fueled by a month-over-month increase just a hair below the multi-decade high recorded in September. 5. Rent is the single-largest variable in the CPI’s single-largest category (shelter, at nearly one-third of the weighting), and it’s cooling significantly, but it appears we won’t see that reality reflected in CPI until 2023 due to lagging data. Remember that the CPI’s rent survey is used not only to estimate renter costs, but it’s also the primary variable in estimating costs for the even larger homeownership category. One ke...

Loss to Lease is Plunging, Suggesting Renewal Rent Growth Will Cool Off

2026-03-04T06:52:45-06:00

Last week, Federal Reserve Chair Jerome Powell dove into the debate over rent inflation and suggested that while new lease rent growth is slowing, “there’s still some significant (rent) increases coming” via cheaper lease renewals hiked up to market level. But RealPage data show that’s NOT exactly true for market-rate apartments. U.S. apartments plunged back to the long-term average in “loss to lease” – which means the runway for renewal lease rents will significantly narrow going forward. @include('site.elements.media.image', ['fileId' => 10271, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']])“Loss to lease” is the gap between today’s market asking rents and the average in-place rent (aka embedded or contract rent, which is what the CPI attempts to measure). As a general rule of thumb: The larger the loss to lease, the larger the renewal increase. Here’s what Powell said: “As non-new leases roll over … there’s still some significant (rent) increases coming, OK, but at some point, once you get through that, the new leases are going to tell you … there will come a point at which rent inflation will start to come down. That point is well out from where we are now.” He’s referring to lease renewals in the CPI; however, in the U.S. market-rate apartment sector, that point is actually now. Loss to lease plunged from 9.4% in June to 5.8% in October, thanks to decelerating new lease rents and (until now) accelerating renewals. That’s exactly matching the historical average since 2010. It’s critical to acknowledge there is ALWAYS some loss to lease because there’s usually a discount for renewals relative to new leases. (It’s equally important not to misinterpret this to mean renewal rents won’t increase as new leases decrease. This just means the nominal rent value paid by a renewing renter is almost always below what a new renter would pay coming through the front door.) A “gain to lease” scenario is unlikely as we'd have what’s called “inve...

Apartment Performance Slows in Raleigh, But Remains Above Market Norms

2026-03-04T06:52:45-06:00

Apartment performance in Raleigh/Durham softened recently, after reaching historic peaks in much of 2021 and the first few months of 2022. But the downturn in this market has been mild and fundamentals remain historically strong. @include('site.elements.media.image', ['fileId' => 10256, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) After a year of record-breaking demand, the Raleigh apartment market recorded two quarters of pullback in absorption, according to data from RealPage Market Analytics. In 2022’s 3rd quarter, Raleigh absorbed just 180 units, which – along with 2nd quarter’s net move-outs for 560 units – was one of the weakest showings the market has displayed since 2019. Still, most markets across the U.S. logged net move-outs in the July-September time frame, so even a small amount of demand here is impressive. Two quarters of softness in Raleigh pulled annual demand down. This is in stark contrast to much of the recent past, in which demand in the market had been peaking at record levels since 2nd quarter 2021. @include('site.elements.media.image', ['fileId' => 10255, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Meanwhile, new apartment supply has increased. Raleigh saw 1,761 units completed in 3rd quarter and a total of 6,126 units wrapped up in the past year. In contrast to demand, annual supply has ticked up in the past two consecutive quarters and is now well ahead of five-year norms for this market. With apartment demand slowing and supply increasing, Raleigh occupancy has come down in recent months, though the September showing of 94.8% is not too far behind the five-year average, which includes the peaks from the end of 2021 and the beginning of 2022, as well as the low point just shy of 94% from 2018. @include('site.elements.media.image', ['fileId' => 10257, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) While rent growth in Raleigh has also softened rece...

October’s Rent Cut Ranks as Third Largest Since 2010

2026-03-04T06:52:45-06:00

U.S. apartment rents cooled for a second straight month behind weak demand. October’s cut ranked as the third largest since 2010, topped only by the COVID-era lockdown period of April and May 2020. Same-store effective asking rents for market-rate apartments dropped 0.6% in October. Cuts are seasonally common in September and October, but 2022’s reductions are notable – even if not terribly surprising – for a couple reasons. First, normal seasonal patterns have been obscured since COVID hit in 2020. Rents jumped in every month of 2021, so 2022 marks a return to normal. Second, the October 2022 cut of 0.6% was the largest for any October in more than 12 years. @include('site.elements.media.image', ['fileId' => 10229, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) The cuts were widespread among markets of all types, with 110 of the nation’s 150 largest apartment markets reporting rent decreases in October 2022. By comparison, only 19 metros reduced rents in October 2021 – further evidence that 2022 is nothing like 2021 for the rental housing market. Rents are falling simply due to weak demand for all types of housing, primarily linked to a near stoppage in household formation. U.S. apartments are on track to see net absorption in calendar year 2022 fall into negative territory, barring a non-seasonal surge in November and December. That said, vacancy started the year at the lowest level on record, and while it’s picked up in 2022 (up 200 basis points year-over-year), apartment vacancy nationally remains moderately low at 4.7%. On a year-over-year basis, effective asking rent growth measured 7.6% as of October – which might prove to be the first time since early 2021 that asking rent growth fell short of headline inflation. Those numbers will continue to deteriorate as sizable increases from late 2021 roll out of the year-over-year equation. Rent concessions (which are included in RealPage’s effective asking rent change numbers) remain...

Apartment Investment in Sun Belt Markets Still a Bargain

2026-03-04T06:52:45-06:00

Ask anyone on the acquisitions side of the table who is active in the nation’s Sun Belt set of markets and they’ll be among the first to tell you how much more competitive the landscape is today than ten or even five years ago. This increase is something of a double edge sword. From one perspective, the rise in attention has increased liquidity within the region among other positive factors. From another perspective though, it means rising purchase prices and generally tighter cap rates. Opinions on whether the Sun Belt region or Gateway markets are better long-term investment strategies vary. Regardless of individual strategy however, the wave of capital flowing into the Sun Belt region today is easily an observable phenomenon. A quick glance at multifamily property sales volume shows that Sun Belt markets are growing overall volume (and therefore their share) faster than Gateway metros. @include('site.elements.media.image', ['fileId' => 10100, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Interestingly enough, it wasn’t until the mid-2010s decade in which Sun Belt sales volumes began to break away from their Gateway counterparts. Prior to that period, there was a generally consistent split between the Sun Belt (which explained about 50% to 55% of total investment, with minor deviation circa 2007/2008 and once again in 2012/2013) and the Gateway markets (the remaining 45% to 50%). @include('site.elements.media.image', ['fileId' => 10099, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '363']]) A quick comparison of trailing 12-month (or annualized) sales volume for Sun Belt markets shows that this increased investment volume phenomenon isn’t limited to a handful of markets, according to data from RealPage Market Analytics. @include('site.elements.media.image', ['fileId' => 10102, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Places like Dallas/Fort Worth ($28.2 billion in the year-endi...

Record Apartment Construction Volumes Across the U.S.

2026-03-04T06:52:45-06:00

In about a third of the nation's largest apartment markets, there have never before been this many units under construction. Over 917,000 units are currently under construction across the U.S., which will increase the nation’s existing apartment base by 4.9%, according to 3rd quarter data from RealPage Market Analytics. This is one of the biggest volumes the nation has ever seen (bested only by the 924,000 units that were under way just one quarter ago). In 16 of the nation’s largest 50 markets, the pace of apartment construction is at an all-time high. While several of these markets (Dallas, Seattle and Denver) are used to heavy construction volumes, there are some wild cards as well (Milwaukee and Columbus). @include('site.elements.media.image', ['fileId' => 10078, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '592']]) Dallas is the nation’s construction leader, with nearly 50,000 units currently under way, a volume slated to swell the existing base by 7.4%. This market routinely ranks among the nation’s construction leaders. In fact, Dallas led the nation for new apartment deliveries in the past year, with the completion of nearly 14,000 units. When that range is extended to the past five years, Dallas is also the nation’s leader for apartment supply, with over 95,000 units increasing the existing base 16.6%. In fact, three out of the five major Texas apartment markets are seeing record construction volumes. Austin is scheduled to see delivery for nearly 40,000 units in the near term, increasing the existing stock by a significant 14.1%. San Antonio’s nearly 14,000 units under way will swell that market by 6.3%. Notably missing from this list is Houston, where construction volumes were #2 in the nation in the past five years, with over 68,000 units completed. The 28,000 or so units under way now present a (relative) relief for the market, though that number is still among some of the strongest nationwide. New York is also set to receive o...

Comparing Apartment Markets: Philadelphia vs. Pittsburgh

2026-03-04T06:52:45-06:00

The City of Brotherly Love and the Steel City. Rich in the nation’s history, Philadelphia sits between the metropolitan areas of New York and DC. Roughly 300 miles inland, Pittsburgh is steeped in a history of coal and steel, bordering the more industrial cities of Ohio. Philadelphia’s apartment market tends to record more stability than many others nationwide, holding onto steady occupancy rates despite tumultuous times. Pittsburgh, a less expensive market with a somewhat less diverse economic profile, tends to ride the waves a bit, logging more extreme highs and lows. While many apartment markets nationwide suffered declining fundamentals during the COVID-19 pandemic, Philadelphia didn’t see much of a blip. This typically stable market continued to log demand just slightly behind concurrent supply volumes until 2021 – and then demand really took off. More recently, demand pulled back in 3rd quarter, according to data from RealPage Market Analytics. Philadelphia logged net move-outs for 1,714 units in the July to September time frame, but that wasn’t enough to pull annual demand into negative territory, leaving total absorption at 2,244 units in the year-ending 3rd quarter. @include('site.elements.media.image', ['fileId' => 10012, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) On the other hand, Pittsburgh logged several quarters of net move-outs during the COVID-19 downturn in the last half of 2020 and into early 2021. This market did experienced quite the comeback in the latter half of 2021, however, with demand towering over new supply, which tends to run much lower than the delivery volumes in Philadelphia. During the downturn in 2022’s 3rd quarter, Pittsburgh suffered net move-outs from just 664 units, but that decline wiped out this market’s previous gains and took annual absorption into slightly negative territory with net move-outs from 47 units. @include('site.elements.media.image', ['fileId' => 10013, 'attributes' => ['bord...

The Evolution of the Detroit Apartment Market

2026-03-04T06:52:45-06:00

Detroit’s apartment market has made notable progress in recent years, evolving into a period of rapid growth after decades of turmoil. While demand has recently slipped, Detroit is preparing for an economic future that can sustain strength in a time of change. First, a history lesson. Roughly 20 years ago, Detroit’s housing market felt abandoned. Single-family homes were going for cents on the dollar. Apartment demand was hard to drum up. Factories were closing and jobs were leaving the metro. Declining auto sales damaged the market in the 2001 Recession, and then two of the area’s biggest locally based employers – Chrysler and General Motors – both declared bankruptcy in the Great Recession. Between 2001 and 2010, Detroit lost more than 200,000 jobs, on net. Total payroll employment declined by 24%. Finally, in 2013, the city declared Chapter 9 bankruptcy, becoming the largest city in U.S. history to do so. @include('site.elements.media.image', ['fileId' => 9858, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) In 2010, however, something changed in the Detroit apartment market. Demand returned in a big way, hitting historic highs. The U.S. overall started to blossom at this time, banking on economic recovery from the recession and increasing job growth. In Detroit, specifically, private and public investment revitalized the city's social and economic landscape and by 2017, the apartment market exceeded expectations. Detroit barely saw a blip in apartment market performance in 2020, when the COVID-19 recession rocked the country, and this market also saw one of the nation’s strongest recoveries when the shock wore off. In 2022’s 3rd quarter, as the U.S. started softening after a period of exceptional growth, Detroit followed suit. In fact, Detroit’s net move-outs for nearly 3,000 units in the July-September time frame placed the metro among the worst performers nationwide, only besting Dallas, Chicago, Los Angeles and Houston. Detroit’...

Inflation Eased Again but Still Hovers Near 40-Year Highs

2025-01-22T03:13:33-06:00

U.S. inflation eased for the third straight month in September, but price increases remain stubbornly high despite efforts by the Federal Reserve to combat inflation by raising interest rates. While inflation is at a seven-month low, it remains near 40-year highs. The Consumer Price Index (CPI) for All Urban Consumers, a measure of price changes commonly referred to as the inflation rate, was up 8.2% on an annual basis in September 2022, according to the Bureau of Labor Statistics. That was slightly lower than the 8.3% annual increase in August and below the 9.1% hike in June, which was the biggest year-over-year jump in prices since November 1981. However, September’s rate was slightly higher than the 8.1% increase forecasted by economists. Inflation has now remained at or near 40-year highs for 11 consecutive months, the biggest price surges since the severe economic recession of 1981-1982. The most recent increase in inflation was broad-based. Energy prices were up 19.8% in the year-ending September, with gasoline prices 18.2% higher than a year ago, but both of those measures were the lowest since early 2021. The cost of shelter rose 6.6% over the past year, the largest 12-month increase since August 1982. Food prices climbed 11.2% on an annual basis, down from 11.4% a month earlier, but still one of the largest 12-month increases since May 1979. The price of new vehicles was up 9.4% in the year-ending September, the smallest 12-month increase in over a year. The cost of used cars and trucks climbed 7.2% over the past 12 months, though that was a vast improvement from the roughly 20% to 40% increases from April 2021 to April 2022. Additionally, the cost of airline fares was up 27.7% year-over-year in August, the largest 12-month increase in over four decades.

Investment in Sun Belt Markets Growing Much Faster than in Gateway Metros

2025-01-22T03:13:33-06:00

The wave of capital flowing into the Sun Belt region continues to overshadow capital flow into the nation’s Gateway metros. Although the total volume of Sun Belt apartment sales had begun rising sharply around 2017, it wasn’t until the onset of the COVID-19 pandemic that the Sun Belt group of metros saw their total sales volume skyrocket, according to data from RealPage Market Analytics. After the Sun Belt garnered a consistent share of roughly 55% of capital flow in the preceding 20-year period, the past eight or so quarters have seen that share jump to about 70%. The data shows that every major Sun Belt market has seen an increase in the past 12 months versus their local pre-pandemic peak (or 2019 volumes) as well. There are a number of reasons why Sun Belt markets have become viewed in a more favorable light in the past real estate cycle in particular. One key driving force influencing this influx of capital is the purported relative savings of Sun Belt markets versus their Gateway counterparts. Investment in the Sun Belt equates to a savings of about 70% compared to Gateway markets. Stay tuned for a more in-depth look at this phenomenon.

Is Apartment Demand Weakening Due to High Rents? Look for These 3 Signals

2026-03-04T06:52:45-06:00

We just witnessed the weakest 3rd quarter for apartment leasing in the 30+ years of tracking the U.S. apartment market. Net absorption registered moderately negative, occupancy ticked down and rents flattened. Is the slowdown due to renters hitting an affordability ceiling? For most of us, our gut reaction to that question is probably, “Yes.” But what does the data tell us? If affordability is the major reason, we should see three key signals: 1) Weakening rent collections, 2) a “flight to affordability” – a shift in demand toward cheaper submarkets and the more affordable Class C asset class, and 3) stagnating renter incomes. Let’s examine all three for clues. 1) Are Rent Collections Weakening? Not yet. Rent collections – the share of rent due that renters pay each month – actually climbed UP in September. Collections improved 20 basis points (bps) month-over-month and 60 bps year-over-year to 95.6%. That marked the best September for rent collections since 2019. @include('site.elements.media.image', ['fileId' => 9671, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) The normal patterns held up in September, with collections registering highest in the most expensive Class A units (97.2%) catering to higher-income renters compared to 96.3% in Class B and 94.1% in Class C, according to data from RealPage Market Analytics. All three asset classes registered improvement year-over-year, with Class C surprisingly posting the biggest gain (up 80 bps) despite the lower overall rate. (Class C renters tend to have lower incomes and thus are more price sensitive than renters in Class A/B). Inflation impacts us all, and that means for many of us, there’s less discretionary spending power. But so far, renters continue to pay the rent – even with most rental assistance programs winding down and few local eviction moratoria still in place. This could change going forward, but so far it’s holding up. 2) Is There a “Flight to Affordability?” Not y...

How Will Hurricane Ian Impact Florida’s Apartment Market?

2026-03-04T06:52:45-06:00

Hurricane Ian flooded, destroyed or damaged an untold number of homes, particularly in Southwest Florida. The full impact of the deadly storm has yet to be measured. But what can past hurricanes tell us about the potential impact to the apartment market? One of the more recent examples is Hurricane Harvey, which flooded much of the Houston metro area and displaced thousands of residents in August 2017. We could see similar impacts in Southwest Florida as we saw back then in Houston. Vacant Units Will Fill Up Fast History shows us that after a major storm, vacant rental units fill up fast. Displaced households need a place to live. After Harvey hit, Houston saw a huge surge in apartment demand. In fact, the more than 11,000 units absorbed in 4th quarter 2017 ranked as the metro’s second-largest ever (at the time). The top quarter ever in Houston for apartment demand? That was back in 2005, when Hurricane Katrina evacuees migrated from New Orleans. @include('site.elements.media.image', ['fileId' => 9606, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) While the total number of households displaced by Hurricane Ian are not yet known, you can expect demand for vacant units from displaced homeowners and renters alike. That’ll likely reverse a 2022 trends of declining occupancy rates across Florida – at least temporarily. That’s a bit of good news: There are more apartment vacancies today available for displaced households than there would have been had the storm occurred a year ago. After COVID hit, Florida markets saw a big spike in apartment demand from the work-from-anywhere and live-anywhere crowd relocating to the state, taking occupancy rates to ultra-high levels. But 2022 brought a big shift in momentum, erasing some of those gains. @include('site.elements.media.image', ['fileId' => 9607, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']])Prior to Ian, Fort Myers (where much of the damage was centered) was one...

U.S. Apartment Demand Plunges in 3rd Quarter as New Leasing Stalls More than Expected

2026-03-04T06:52:45-06:00

New renters filled up U.S. apartments at record levels in 2021 and early 2022. But in more recent months, apartment demand has unexpectedly evaporated in much of the country due to what appears to be a freeze in new household formation. A surprisingly big slowdown in leasing traffic pushed net apartment demand moderately negative in 3rd quarter at -82,095 units – typically a seasonally strong leasing period. It also marked the first time in RealPage’s 30 years of tracking U.S. apartments that demand registered negative during a 3rd quarter period. @include('site.elements.media.image', ['fileId' => 9511, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) That brought year-to-date net demand to -47,143 units. In turn, effective asking rents – which have been growing at a much slower pace in 2022 compared to 2021 – fell month-over-month (-0.2%) in September for the first time since December 2020. That marks return-to-normal seasonal pricing, as rents typically dip mildly every September, but notably did not in 2021. @include('site.elements.media.image', ['fileId' => 9515, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Negative demand means that the number of renters moving out of apartments topped the number moving in. Move-outs are seasonally higher in the summer months as more relocations occur, but so are move-ins. Early indications are that move-outs trended toward normal seasonal levels, while move-ins slowed materially. To be clear, the U.S. apartment market remains on firm footing. Apartment vacancy jumped 1.0 percentage point in 3rd quarter but remained low at just 4.4%. @include('site.elements.media.image', ['fileId' => 9512, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Is demand weakening due to higher rents? That likely plays some role, but it’s not that clear cut. Renter incomes and rent payments both improved in recent months. Household incomes among new lease sign...

The Five Largest Build-to-Rent Communities Under Construction

2026-03-04T06:52:45-06:00

The American Dream of homeownership continues to move out of reach for many Americans as inflation remains near 40-year highs and mortgage rates climb. As recently as July 2022, the Consumer Price Index (CPI) for All Urban Consumers climbed 8.5% annually. At the same time, the 30-year fixed rate sat around 5.2% as of August 11, according to Freddie Mac. With mounting economic pressure hampering homeownership, a new trend in multifamily housing continues to gain traction and popularity: the build-to-rent (BTR) or build-for-rent (BFR) market. Launched in Arizona around 2010, BTR offers potential residents an option to live in single-family homes without the demands of homeownership. BTR communities are purpose-built, single-family rental communities with all the benefits of single-family homeownership, but without the headaches. They typically offer close proximity to schools, parks, retail centers and employment hubs. The communities also come with resort-style amenities. In short, BTR offers residents an attainable means to enjoy the American Dream. Developers have latched onto the concept and the number of BTR communities has accelerated over the last two years. The five largest BTR communities under construction across the top 150 markets, roughly 1,900 units, are planned to deliver by the end of 2024, according to data from RealPage Market Analytics. @include('site.elements.media.image', ['fileId' => 8820, 'attributes' => ['class' => 'aligncenter size-full wp-image-39536', 'border' => '0', 'width' => '1603', 'height' => '422']]) Here are the five largest under construction BTR projects among the nation’s top 150 markets as of July 2022. Three of the five largest projects are in Arizona. Arroyo Verde California-based American Homes 4 Rent broke ground on Arroyo Verde in November 2021. The 400-home Arroyo Verde is planned for Phoenix. Expected to deliver in the first half of 2024, Arroyo Verde will rise in the Avondale/Goodyear/West Glendale submarket around W...

Market-Rate Apartment Renters Spending 23% of Income Toward Rent

2026-03-04T06:52:45-06:00

To download this report, click here. COVID-19 thrusted rental housing affordability into the spotlight. Headlines warned of a pending eviction tsunami. Policymakers moved to provide backstops – from direct cash stimulus to expanded unemployment pay to eviction moratoria to rental assistance. When it became clear the “tsunami” hadn’t arrived and wasn’t coming, many analysts credited those policy efforts. But this first-of-its-kind study into one of the largest segments of the U.S. rental housing market reveals a much more significant driver keeping rental distress – and evictions – low: The vast majority of renters were able (and willing) to pay the rent. Market-rate apartment renter incomes have soared since the pandemic, keeping rent-to-income ratios much lower than widely assumed. Those ratios have inched up slightly due to the 40-year high in inflation, but not enough to meaningfully change the story on apartment affordability. The median household income for market-rate apartment renters so far in 2022 soared to an all-time high of $75,000, up 15.4% since 2020. Over the same timeframe, the median monthly rent on a new lease jumped 21.9% to $1,510, nationally. That reversed a pattern of eight straight years of rent-to-income ratios inching downward. The share of income spent on rent ticked up from 21.3% in 2019 to 23.2% in 2022, marking a return to the 2011 norm, and still well below the generally accepted affordability ceiling of 33%. @include('site.elements.media.image', ['fileId' => 8742, 'attributes' => ['class' => 'aligncenter size-full wp-image-39183', 'border' => '0', 'width' => '1020', 'height' => '633']])The income numbers – and low share of income spent on rent – are remarkable when considering the sheer volume of renters leasing apartments. The professionally managed, market-rate apartment sector has added roughly 1 million net new households since the start of 2020 through the first half 2022, even as rents have increased, pushing vacancy to recor...

U.S. Inflation Reaches a New 40-Year High

2026-01-15T10:42:35-06:00

The price of goods and services in the U.S. continued to soar in June despite efforts by the Federal Reserve System to curb inflation. The Consumer Price Index (CPI) for All Urban Consumers, a measure of price changes commonly referred to as the inflation rate, increased 9.1% on an annual basis in June 2022, according to the Bureau of Labor Statistics. That was the biggest year-over-year jump in prices since November 1981 and was up from the 8.6% annual increase in May. Inflation has remained at 40-year highs for eight consecutive months, the biggest price surges since the 1981-1982 time period, when the country was in a severe economic recession. The increase in inflation was broad-based, with rising prices in gasoline, shelter and food being the largest contributors. Energy prices were up 41.6% in the year-ending June, with gasoline prices climbing 59.9%, as the war in Ukraine has driven up energy costs. The cost of shelter rose 5.6% over the past year, the largest 12-month increase since February 1991. Food prices continued to edge higher, climbing 10.4% on an annual basis, the second consecutive double-digit increase since 1981. The recent overall increase in consumer prices was also partly attributed to surging prices of new vehicles, as the price of new cars and trucks was up 11.4% in the year-ending June. Additionally, the cost of airline fares continued to climb, up 34.1% over the past year, though that was down from the 37.8% annual increase in May.

Markets with the Most Fortune 500 Headquarters in 2022

2023-03-30T11:16:55-05:00

The nation’s 500 biggest revenue-generating businesses produced a total of nearly $16.1 trillion in revenue during 2021, according to the recently released Fortune 500 rankings. That represents roughly two-thirds of the nation’s gross domestic product. Although New York continues to rank as the nation’s top market for Fortune 500 headquarters, the numbers of those prestigious companies have been declining. New York laid claim to the headquarters of 48 Fortune 500 companies in the 2022 ranking, down one company from 2021’s list. The #2 market in the nation was Chicago, home to 35 Fortune 500 companies after losing one top business this year. Two big Texas markets – Houston and Dallas – have 24 and 21 Fortune 500 headquarters, respectively. Both Houston and Dallas gained one company over the past year. San Jose and Atlanta tied for the #5 spot, both with 17 Fortune 500 headquarters. While the count in San Jose was down by two, Atlanta gained one Fortune 500 company. Washington, DC ranked #7 with 16 companies followed by Minneapolis with 15 companies. Both those markets lost one Fortune 500 company over the past year. Boston, at #9, had 15 Fortune 500 headquarters in 2022, unchanged from 2021. Newark, Philadelphia and San Francisco tied for the #10 spot, each with 13 Fortune 500 headquarters, all with the same number as they had in 2021.

The Five Largest Apartment Transactions in 1st Quarter

2026-03-04T06:52:45-06:00

Apartment transaction volumes eased in 1st quarter 2022, following record volumes in 4th quarter 2021. Roughly 2,200 apartment properties changed hands at a value of nearly $63 billion during 1st quarter 2022, according to Real Capital Analytics (RCA). This was the strongest 1st quarter on record, though transactions were well below the previous quarter when around 4,900 properties changed hands for more than $161.6 billion. @include('site.elements.media.image', ['fileId' => 8657, 'attributes' => ['class' => 'aligncenter size-full wp-image-38699', 'border' => '0', 'width' => '1020', 'height' => '633']]) The recent low was in 2nd quarter 2020, following the onset of the pandemic, when only 968 properties were sold at a value of $15.7 billion. Just a few months later, in the last three months of 2020, about 2,900 apartments transacted for roughly $63.6 billion, which at the time was a 20-plus year quarterly high on both accounts. For 2020 overall, about 7,200 apartment communities were sold for nearly $147.2 billion. That was well below the volume from 2019, when nearly 9,000 properties traded hands for $193.3 billion. In 2021, transactions far surpassed 2020 levels, with roughly 12,800 properties trading hands at a value of more than $351.6 billion, nearly double the 2000 level on both accounts. Transactions in the year-ending 1st quarter 2022 totaled more than $374.3 billion with over 13,000 properties trading hands, new annual highs on both measures. @include('site.elements.media.image', ['fileId' => 8658, 'attributes' => ['class' => 'aligncenter size-full wp-image-38695', 'border' => '0', 'width' => '1020', 'height' => '633']]) Here are the five largest individual apartment transactions from January through March, with all these transactions occurring on the East or West Coast. American Copper Buildings The largest apartment transaction to take place nationally in the first three months of 2022 was the sale of the American Copper Buildings in New York’s Upp...

Apartment Renters Renewing Leases at Record Levels, Even as Rents Increase

2026-03-04T06:52:45-06:00

More apartment renters than ever are choosing to renew leases in the same unit, even as rents jump amidst rapid inflation. At the same time, market-rate renter incomes continue to soar – helping push up affordability ceilings. More than 57% of market-rate renters with an expiring lease renewed over the last 12 months, up 3.5 percentage points year-over-year, according to actual rent rolls running on the RealPage platform. By comparison, apartment retention between 2010 to 2019 averaged 51.5% before soaring in the COVID era. Apartment renters renewing leases in April paid 10.7% more compared to their previous lease. That’s a large increase, but substantially below the 18.7% hike a typical new renter paid compared to previous residents of the same unit. @include('site.elements.media.image', ['fileId' => 8647, 'attributes' => ['class' => 'aligncenter size-full wp-image-38657', 'border' => '0', 'width' => '1020', 'height' => '633']]) For most renters, the best deal is usually to stay put and renew. It’s extremely difficult to find available housing of any type right now, and what is available is often more expensive. Renewal rent is increasing much faster at 11-12% in the more expensive Class A and Class B segments, which generally cater to higher-income renters. In the lower-cost Class C segment where affordability plays a bigger role, renewal rents increased 7.1% — well below headline inflation of 8.3%. That means that for most Class C renters, housing costs are growing at a slower pace than other expenses. Class C renters also tend to be the most sticky, with 65% of renters renewing leases in the last year. By comparison, Class A renters tend to be much more transient – especially with new, high-priced lease-ups coming online drawing renters from other Class A properties – with 53.4% renewing leases. These renewal stats exclude most renters behind on rent or in a potential eviction process, so rental distress is not propping up retention. Additionally, renters...

Ranking Florida Apartment Markets by Rents Per Square Foot

2026-01-15T10:49:11-06:00

Across Florida, apartment rents remain affordable compared to the national norm, with a couple notable exceptions. The trio of markets that make up the South Florida region – Miami, West Palm Beach and Fort Lauderdale – all claim average effective rents per square foot well above the national norm of $1.87, according to data from RealPage Market Analytics. Miami takes the helm at average rents per square foot of $2.39, on par with other markets such as Riverside. Two markets on the Gulf Coast of Florida – Naples and North Port – also rank above the national norm. Yet, every other major apartment market in Florida claims relative affordability. Tallahassee claims the title as the most affordable Florida market when looking at price per square foot with average effective rents at $1.20.

California Apartment Markets Ranked by Rent Per Square Foot

2026-01-15T10:48:08-06:00

The priciest apartment market in California registers rents per square foot more than double the national norm, according to data from RealPage Market Analytics. Average effective rent per square foot in San Francisco registered at $3.92 in March 2022, more than twice the U.S. average of $1.87. Unsurprisingly, most major apartment markets in California register rents per square foot well above that $1.87 threshold. San Jose ($3.30), Los Angeles ($3.11) and Oakland ($3.02) are the only three other California markets where rent per square foot tops $3, but Santa Maria and Anaheim come close. Within the state, coastal markets tend to be much pricier than more inland markets, such as Sacramento ($2.20), Stockton-Lodi ($2.16), Bakersfield ($1.61) or Fresno ($1.57).

Average Student Housing Rents Ranked by State: Fall 2021

2026-03-04T06:52:45-06:00

To see an updated version of this map using 2023 data, click here. Much like conventional apartment rents, student housing pricing varies widely across the U.S. The average price of a student housing bed runs higher in states with steeper conventional apartment prices, such as in the Northeast and West, and lower in the South and Southeast. Across the core 175 universities tracked by RealPage, average effective asking rents per bed in privately owned student housing runs around $860 per month. In some states, however, that price per bed is more than double that rate. In New York state, the average student housing bed runs $2,040 per month, followed by about $1,800 in Massachusetts, $1,640 in Washington, DC and about $1,540 in California, according to RealPage Market Analytics data. @include('site.elements.media.image', ['fileId' => 25158, 'attributes' => ['border' => '0', 'width' => '1020', 'height' => '633']]) Outside of those quintessentially pricey locales, regionality plays more of a role. States in the Northeast, such as Connecticut, New Jersey and Vermont, and West, such as Hawaii, Washington and Oregon, make up the next tier of pricing, from about $1,499 to $1,000 per bed per month. States with monthly rents from $999 to $750 – which includes the national norm of $860 – include some of the states with the most massive student populations, such as Texas ($912), Florida ($927) and Arizona ($922). The largest grouping of states is priced between $500 and $749 per month, including many Midwest and Southeast states. The three states with the biggest bargains for student housing are North Dakota ($496), Arkansas ($491) and Wyoming ($471). In other words, students in these three states pay on average less than a quarter of the monthly rent New York students pay.

Apartment Transactions Surge in 4th Quarter

2026-03-04T06:52:45-06:00

Apartment transaction volumes surged in 4th quarter, with the dollar value of trades – and the number of properties trading hands – hitting the highest level in more than 20 years, and possibly ever. Roughly 4,300 apartment properties changed hands at a value of nearly $148.9 billion during 4th quarter 2021, according to Real Capital Analytics (RCA). That dollar volume was the highest on record in at least 20 years and was 73% higher than the previous peak which was recorded in 3rd quarter 2021. The number of properties changing hands was also at a record high, after hitting a recent peak of over 3,100 units the previous quarter. @include('site.elements.media.image', ['fileId' => 8483, 'attributes' => ['class' => 'aligncenter size-full wp-image-37898', 'border' => '0', 'width' => '1020', 'height' => '633']]) The recent low was in 2nd quarter 2020, following the onset of the pandemic, when only 967 properties were sold at a value of $15.7 billion. Just a few months later, in the last three months of 2020, about 2,900 apartments transacted for roughly $63.6 billion, which at the time was a 20-plus year quarterly high on both accounts. For 2020 overall, about 7,200 apartment communities were sold for $146.9 billion. That was well below 2019 volumes, when nearly 9,000 properties traded hands for $193.1 billion. Last year’s transactions far surpassed 2020 levels, with a total of 12,070 properties trading hands at a value of $336.3 billion, roughly double the 2000 level on both accounts. @include('site.elements.media.image', ['fileId' => 8484, 'attributes' => ['class' => 'aligncenter size-full wp-image-37896', 'border' => '0', 'width' => '1020', 'height' => '633']]) Here are the five largest individual apartment transactions from October through December. The Merian The largest apartment transaction to take place nationally in 2021’s 4th quarter was a newly built development in the San Diego market. In late December, Toronto-based Brookfield Asset Management bought...

Occupancy Skyrockets in Supply-Heavy College Station

2025-01-22T03:13:29-06:00

An unexpected apartment market claimed the largest occupancy increase in the nation in 4th quarter: College Station, TX. In the final quarter of 2021, College Station occupancy rose 390 basis points to stand at 97% – marking a seven-year high for this market which generally trails the U.S. average. This market of about 26,000 conventional market-rate units is home to Texas A&M University, which has an enrollment of about 66,000 students. The conventional apartment market in College Station has seen extreme swings in new supply over the last several years, gaining as much as 9.4% new inventory in a year (in late 2018) and as little as 1.1% (in early 2017). In 2021, about 660 new units came online in College Station while 1,600 apartments were concurrently absorbed. Texas A&M, meanwhile, has about 50,000 privately owned student housing beds. After receiving massive levels of new supply in 2016, 2017 and 2018, the university has seen very little construction in the last three years.

The Second-Largest Renter Cohort: Roommates by Necessity

2026-03-04T06:52:45-06:00

Roommates by Necessity is the nation’s second largest renter cohort, making up nearly one quarter of apartment renter households in the U.S. RealPage performed a massive study of more than 11 million individual apartment leases to create an industry-leading cluster analysis of U.S. apartment renters. Those 11+ million leases were analyzed by our team of data scientists who crunched the numbers and identified the most powerful and explanatory variables. Then, with their help, RealPage’s team of data and market analysts combined that intel into seven individual renter cohorts based on a suite of demographic variables, including renter income, age, marital status, kids, pets and cars. Apartment product selection criteria were also included, such as property age, class, location, number of occupants, lease term, effective rent, rent-to-income ratio, length of stay and propensity to renew. @include('site.elements.media.image', ['fileId' => 8428, 'attributes' => ['class' => 'aligncenter size-full wp-image-37580', 'border' => '0', 'width' => '1021', 'height' => '560']]) Roommates by Necessity make up about 23% of the U.S. renter population. At 28.1 years old, this is the second youngest of all seven cohorts. For comparison, the U.S. renter average is 31.8 years old. This is a young group of renters, but this particular group is doing pretty well in terms of typical salary levels. With a median income of nearly $80,000, this group ranked3rd highest among the nation’s renter base, after Affluent Singles and Established Married Couples. Meanwhile with an average rent of $1,419, these renters tend to live in coastal locales, in more expensive housing markets. That’s the 3rd highest among all seven renter groups. Despite the higher monthly rents, however, Roommates by Choice still spend a relatively smaller portion of their income on rent. The rent to income ratio of 20.7% was the 3rd lowest of all cohorts at the time of the analysis. @include('site.elements.media....

The Largest Renter Cohort: Starting Out Singles

2026-03-04T06:52:45-06:00

The largest share of U.S. renters belongs to the Starting Out Single cohort, which makes up nearly one third of all apartment renter households. RealPage performed a massive study of more than 11 million individual apartment leases to create an industry-leading cluster analysis of U.S. apartment renters. Those 11+ million leases were analyzed by our team of data scientists who crunched the numbers and identified the most powerful and explanatory variables. Then, with their help, RealPage’s team of data and market analysts distilled that intel into seven individual renter cohorts based on a suite of demographic variables, including renter income, age, marital status, kids, pets, cars, and so forth. Apartment product selection criteria were also included, such as property age, class, location, number of occupants, lease term, effective rent, rent-to-income ratio, length of stay and propensity to renew. @include('site.elements.media.image', ['fileId' => 8417, 'attributes' => ['class' => 'aligncenter size-full wp-image-37522', 'border' => '0', 'width' => '1021', 'height' => '560']]) Starting Out Single is primarily a group of younger, unmarried individuals. In fact, with a median age of 27, this is the youngest of all seven cohorts, and nearly five years younger than the U.S. renter average (31.8). These folks are just starting their careers and as a result typically don’t earn as much as those who are well on their career path. The median income from this group is just over $41,000 per year which also ranks the lowest among all seven cohorts. For comparison, the median renter household income at the U.S. level is about $60,000 per year. It would make sense then that these renters are typically budget savvy and choose to lease the most affordable units. With an average rent of $987 per month, this group actually has the lowest rent among all cohorts as well. That’s about $260 less than the typical rent in the U.S. at the time of this analysis. Not surprisingly, t...

U.S. Inflation Highest Since Early 1980s Recession

2026-01-15T09:17:32-06:00

The cost of goods and services continued to surge higher in December, with prices climbing at a 39-year high. The Consumer Price Index for All Urban Consumers, a measure of price changes commonly referred to as the inflation rate, has been generally trending up since January 2020 and increased 7.0% year-over-year in December 2021, according to the Bureau of Labor Statistics. That was the seventh consecutive month in which inflation topped 5% and the largest annual increase since June 1982 when the country was in a severe economic recession. Accounting for much of the recent increase in inflation, energy prices were up 29.3% during the year-ending December, with gasoline prices alone surging 49.6% year-over-year. Food prices were up 6.3% on an annual basis, with the increase in the price of meat (14.8%) heavily contributing to that upturn. The recent overall increase in consumer prices was also partly attributed to surging prices of pre-owned vehicles, as the price of used cars and trucks soared 37.3% in the year-ending December. Excluding food and energy prices, which can be volatile, the core CPI was up 5.5% year-over-year. However, that was still the sharpest increase in more than three decades. Recent inflation reflects a surge in demand and shortages in materials and labor. In mid-December, officials at the Federal Reserve System indicated they expect to raise interest rates several times in 2022 to slow demand and reduce inflation.

Renter Segmentation and What it Can Tell Us

2026-03-04T06:52:45-06:00

Demographics is an interesting area of study. After all, it’s fun to learn more about our friends and neighbors, and the lives of people who live and work in other places. Still, what really sets demographics analysis apart is its impact on just about every type of business decision. Most businesses are fundamentally a vehicle to provide goods and services to some type of customer – and a deep and thorough understanding of what that customer needs and wants can guide everything from overall strategic direction to operations to point-of-sale interactions. Arguably no industry is more dependent on demographics data than real estate. Both commercial and residential real estate investments are unique compared to other asset classes in a multitude of ways, but three traits in particular necessitate a very deep understanding of underlying demographic data: the size of the investment, longer time horizons, and asset appreciation potential. To better understand exactly who today’s apartment renters are, RealPage data scientists analyzed more than 11 million individual apartment leases to create an industry-leading cluster analysis of U.S. apartment renters. This resulted in seven renter cohorts based on a suite of demographic variables, including renter income, age, marital status, kids, pets, cars and more. Apartment product selection criteria were also included, such as property age, class, location, number of occupants, lease term, effective rent, rent-to-income ratio, length of stay and propensity to renew. RealPage data scientists found that most renters fall into one of the following categories: Starting Out Singles, Roommates by Necessity, Affluent Singles, Independent Seniors, Established Couples, Families and Young Couples. @include('site.elements.media.image', ['fileId' => 8409, 'attributes' => ['class' => 'aligncenter size-full wp-image-37485', 'border' => '0', 'width' => '780', 'height' => '484']]) Over the course of the next few weeks, we will be analyzin...

2022 Will Be a Record Year for Apartment Construction

2026-03-04T06:52:45-06:00

More apartments are scheduled to complete in 2022 than in any single year since at least the 1980s. Over 426,000 apartments are under construction and slated to complete in 2022, which is the highest volume on record for the U.S. apartment market in at least 40 years. For comparison, 2021 was also considered a record year for apartment completion volumes in the 150 largest U.S. metros, with deliveries topping 363,000 units. The scheduled volume for 2022 beats the 2021 completion tally by 17% and nearly doubles the long-term average. Completions in the coming year are slated to grow the U.S. apartment stock by another 2.3%. @include('site.elements.media.image', ['fileId' => 8397, 'attributes' => ['class' => 'aligncenter size-full wp-image-37386', 'border' => '0', 'width' => '680', 'height' => '422']]) How likely is this number to hold, though, given we are now amid another COVID-19 variant surge? We also asked ourselves that question in 2020 and 2021, when global supply chain disruptions and worker shortages were delaying construction timelines. While these setbacks did result in smaller than anticipated apartment delivery numbers in those years, it’s clear that the delays didn’t derail developers’ ability to get projects completed. In fact, the increased number of deliveries slated for 2022 are likely compounded by delays from the last two years. While the employment numbers have started to recover, job gains took another stumble in November. And though there have recently been signs of hope of an end to the global supply chain disturbances, the new variant might further challenge development. However, the volume of multifamily units authorized for construction in the U.S., but not yet off the ground is at its highest level since 1999. Roughly 120,000 additional units are waiting in the wings right now, looking to break ground soon. Where are those projects being built? Phoenix and New York are scheduled to see the biggest wave of new deliveries, with over 20,...

Student Housing Supply to Hit 11-Year Low in 2022

2026-01-15T11:06:09-06:00

After a decade of new student housing supply averaging at elevated levels in the U.S., 2022 will mark an 11-year low in supply. In 2022, about 26,700 beds are scheduled to deliver, marking the lowest total since the Great Recession recovery. Next year’s total is much lower than the 50,000 beds the market delivered per year, on average, in the past 10 years. In 2021, annual supply was about 42,000 beds, nearly identical to the pace of completions from 2019 and 2020. New supply peaked in Fall 2013 and Fall 2014 at over 64,000 new beds. RealPage expects this pullback in student housing supply to last for a year or two based on currently identified projects, which will allow many overheated schools to recover and rebalance supply and demand fundamentals.

Largest Apartment Projects Scheduled to Complete in 2022

2026-03-04T06:52:45-06:00

The U.S. apartment market is on track to grow by nearly 411,000 units in 2022, a number boosted by some massive individual projects. The largest conventional apartment projects scheduled to deliver in 2022 are being built on the east and west coasts and nearly all of them are considered high-rises. Four of the 10 largest projects are set to come online in the New York market, while Los Angeles and Seattle are each expected to receive two of these large projects. The remaining communities are delivering in Anaheim and Philadelphia. Four of these 10 large projects completing in 2022 were originally scheduled for delivery in 2021, but the pandemic created construction delays. Looking at developers, Brookfield Properties was the only developer to have more than one project in the list of biggest 10 completions for 2022. Here’s a look at the 10 largest projects scheduled to deliver next year. @include('site.elements.media.image', ['fileId' => 8375, 'attributes' => ['class' => 'aligncenter size-full wp-image-37247', 'border' => '0', 'width' => '2085', 'height' => '1132']]) Piazza Terminal The largest apartment community scheduled for completion in 2022 is the 1,131-unit Piazza Terminal in Philadelphia. Philadelphia-based Post Brothers is developing the 1.1 million-square-foot multi-building development in the Northern Liberties neighborhood of Center City Philadelphia. The site is between North Hancock Street and Germantown Avenue, north of West Wildey Street and is adjacent to The Piazza mixed-use development which opened in 2009. Piazza Terminal consists of two eight-story buildings, two 12-story buildings and a 16-story building wrapped around a public promenade that will be an extension of the existing Piazza Liberties Walk apartment community. Piazza Terminal will feature an indoor lounge and outdoor amenities with three different pools, an outdoor kitchen and dining area, cabanas, a yoga lawn, fitness center, dog park and hot tubs. Construction on Piazza Termin...

U.S. Inflation Near Four-Decade High

2025-01-22T03:13:28-06:00

The cost of goods and services continued to surge higher in November, with prices climbing at a 39-year high. The Consumer Price Index for All Urban Consumers, a measure of price changes commonly referred to as the inflation rate, has been generally trending up since January 2020 and increased 6.8% year-over-year in November 2021, according to the Bureau of Labor Statistics. That was the sixth consecutive month in which inflation topped 5% and the largest annual increase since June 1982. Accounting for much of the recent increase in inflation, energy prices were up 33.3% during the year-ending November, with gasoline prices alone surging 58.1% year-over-year. Food prices were up 6.1% on an annual basis. The recent increase was also partly attributed to surging prices of pre-owned vehicles, as the price of used cars and trucks soared 31.4% in the year-ending November. Excluding food and energy prices, which can be volatile, the core CPI was up 4.9% year-over-year. However, that was still the sharpest increase in three decades. Recent inflation reflects a surge in demand and shortages in materials and labor. Officials at the Federal Reserve System believe that the current price hikes are temporary due to pandemic-related factors and should normalize over the next year or two.

These States Have the Most Beds Per Student Housing Unit

2026-03-04T06:52:45-06:00

If you’re a college student in the West, expect to bunk up with a couple roommates – or three. Midwestern college kids might just take on living with a friend. That’s because some states – mostly in the West – provide more beds per student housing unit, while others – mostly in the Midwest – offer purpose-built properties with fewer beds per unit. Across the nation, the average student housing unit built since 2008 houses 2.9 beds, equating to about 100 units and 300 beds per property, on average. However, those figures vary by region. Utah claims the most beds per unit in the nation. Utah schools often buck national norms. Schools such as Utah State University and Brigham Young University consistently deliver new supply with higher beds per unit, sometimes topping 6 beds per unit on average. These properties also trend smaller at just 57 units on average. @include('site.elements.media.image', ['fileId' => 8335, 'attributes' => ['class' => 'aligncenter size-full wp-image-37025', 'border' => '0', 'width' => '680', 'height' => '406']]) The second highest volume of beds per unit is in Indiana at 3.7. Developments here are larger, averaging over 125 units and about 460 beds. California, a state with traditionally dense development (in both conventional and student housing) averages 3.3 beds per unit, tying with the showing in Colorado. Properties in both Colorado and California tend to run smaller at around 80 units per project on average. In Colorado, schools that have received the most development since 2008 tend to be in more urban settings, such as Boulder, Colorado Springs, Denver and Fort Collins. The three highest development states – Texas, Florida, and North Carolina – fall in line with the national norm, with roughly 2.9 student housing beds per unit. States with the fewest beds per unit tend to be in the Midwest, where plentiful land in more suburban and rural locations allows for less density and less expensive development. In Iowa, the average beds p...

Typical New Apartment Project Size Varies Sharply Across Metros

2026-03-04T06:52:45-06:00

During the past few days, Equity Residential – an apartment REIT previously focused solely on gateway metros – has purchased recently-built multifamily product in both Dallas and Atlanta. Furthermore, the company has announced a partnership with Toll Brothers to construct new properties in markets that include Dallas, Atlanta, Denver and Austin, in addition to the firm’s traditional favorites Boston, Orange County, San Diego and Seattle. This strategy adjustment by EQR illustrates that the country’s biggest sources of apartment investment capital are placing an increasing emphasis on high-growth Sun Belt metros. There’s a surge in sales activity occurring in product located across Texas, Florida and the Carolinas as well as in markets like Phoenix, Atlanta and Nashville. Those that hold mostly gateway metro assets in their current portfolios are used to investing big blocks of capital with each purchase, since property price per door is so expensive in locations like the Bay Area, New York, Boston and Los Angeles. In more moderately-priced Sun Belt locations, then, the biggest properties could prove most appealing, since they will have price tags closer to the deal sizes that are routine in gateway locations. @include('site.elements.media.image', ['fileId' => 8230, 'attributes' => ['class' => 'aligncenter size-full wp-image-36580', 'border' => '0', 'width' => '720', 'height' => '404']]) How does asset size vary across markets? The average size of properties currently under construction across the nation’s 50 largest metros comes in at 231 units, but that typical unit count ranges from well over 300 apartments in some locations to only around 100 units in others. A Surprise Leader Average property size among developments on the way in Las Vegas registers at 346 units, biggest across the country. Influencing that figure, construction starts in the past year include a pair of unusually large properties, 875-unit UnCommons and 750-unit Ariva. Las Vegas normally is...

Washington, DC Occupancy Consistent, Despite Big Supply Volumes

2026-03-04T06:52:45-06:00

Despite having to digest a sizable block of new apartment supply during the past decade, Washington, DC has ranked among the country’s most consistent apartment occupancy performers, with a rate hovering between 95% and 96%. Today’s occupancy rate in Washington, DC stands at 95.8%, 40 basis points (bps) above the year-ago rate and just 80 bps below the multi-decade high posted not long ago in Fall 2019.@include('site.elements.media.image', ['fileId' => 8202, 'attributes' => ['class' => 'aligncenter size-full wp-image-36479', 'border' => '0', 'width' => '720', 'height' => '405']]) Helping to hold up Washington, DC’s apartment occupancy performance, lower- and middle-tier properties are doing quite well right now. The rate is best at 96.4% in the Class C units, followed by the 96% in the Class B apartments. Occupancy in Class A units is a little lower at 94.5% as of June, as existing luxury stock is facing competition from new completions offering big rent discounts during lease-up. There’s some variation in occupancy across neighborhoods in metro Washington DC, mainly reflecting that the urban core performance took a tumble in the early days of the pandemic. While occupancy in Central DC, the Navy Yard/Capitol South and Northwest DC dipped to 89% to 90% in 2020, rates in those submarkets are back up to 93% to 94% as of June. However, those readings are still below the rates in other areas of the market, reflecting the competitive leasing environment that has been created with so much construction in each neighborhood.

Downtown Los Angeles Sees Sizable Apartment Inventory Growth

2026-03-04T06:52:45-06:00

Like a lot of other apartment markets across the country, Los Angeles has experienced a big run-up in urban core building during the past decade. About 18,300 market-rate units have been built in the Downtown Los Angeles submarket since early 2010. That’s more than double the completion volumes in neighborhoods at the next tier of activity. Deliveries were closer to 6,500 to 7,000 units in Hollywood, Burbank-Glendale-Pasadena and Mid-Wilshire.@include('site.elements.media.image', ['fileId' => 8093, 'attributes' => ['class' => 'aligncenter size-full wp-image-36031', 'border' => '0', 'width' => '720', 'height' => '405']]) With so much new supply moving through lease-up, occupancy in Downtown Los Angeles is running well below the five-year average. Occupancy of 93.1% in Downtown Los Angles is one of the worst showings in the market. However, occupancy in this submarket has improved since bottoming out with a rate of 91% in July 2020. Rent positioning in Downtown Los Angeles has also trailed the market average in recent years. In the year-ending April, effective asking rents were off 9.4% from year-ago pricing. Rent cuts in Los Angeles overall were much more moderate at 2.8%. Downtown Los Angeles rents average roughly $2,300 per month, which is only about $125 more than the metro average. This is one of the few spots across the country where the urban core isn’t the most expensive place to live. Ongoing apartment construction in Downtown Los Angeles is still substantial at 5,400 units, which will expand the existing inventory in the submarket by a little more than 10%.

The Largest Apartment Projects Scheduled to Complete in 2021

2026-03-04T06:52:45-06:00

The U.S. apartment market is on track to grow by more than 400,000 units this year, a number boosted by some massive individual projects. The largest conventional apartment projects scheduled to deliver in 2021 are being built on the east and west coasts. Three of the 10 largest projects are set to come online in the Seattle market, while Los Angeles and Miami are each expected to receive two of these large projects. The remaining communities are delivering in Newark, New York and San Diego. Here’s a look at the largest projects scheduled to deliver this year. @include('site.elements.media.image', ['fileId' => 7906, 'attributes' => ['class' => 'aligncenter size-full wp-image-35247', 'border' => '0', 'width' => '2517', 'height' => '1280']]) Ferrante Los Angeles will be home to the largest project set to deliver in 2021. Ferrante is a seven-story community rising in Downtown Los Angeles that will contain 1,150 units. Beverly Hills, CA-based G. H. Palmer Associates began construction on the property in early 2018, with completion scheduled for December 2021. The development, located on a 10-acre property at West Temple Street and North Beaudry Avenue, replaces the former 10-story Bank of America data center and office building. The mixed-use complex, built around a large courtyard, will include 21,000 square feet of ground-floor retail space. Ferrante is the latest and largest in Palmer’s “Renaissance Collection,” a series of Italian-inspired apartment complexes bordering the Harbor Freeway in Los Angeles. Combined with six other projects – Da Vinci, Lorenzo, Medici, Orsini, Piero, and Visconti – Palmer’s portfolio will include 5,000 residential units. Onni South Lake Union Onni Group, a real estate development company headquartered in Vancouver, Canada, is building a master-planned community on Denny Way in Seattle’s South Lake Union neighborhood. The residential portion of the development will contain 1,128 units in twin 41-story towers. Construction began in...

Steep Declines Drop Rents in San Francisco to Within $300 of Oakland Prices

2025-01-22T03:13:17-06:00

San Francisco effective asking rents for new-resident leases are down to $2,927 as of September, dipping below $3,000 for the first time in five years. With that pricing slide, the monthly rent difference between San Francisco and neighboring Oakland is down to $266. Given East Bay apartment demand over the past decade was fueled in part by households getting priced out of the San Francisco market, is that pattern of movement about to be reversed now that San Francisco pricing is within reach for additional households? Similar shifts could emerge for other spots across the country, too. Look for possible demand changes in Manhattan versus Brooklyn and Washington, DC versus Baltimore as well.

Manhattan Brings Down New York Apartment Performance

2026-03-04T06:52:44-06:00

New York faces an uphill battle to regain its footing in apartment fundamentals, and the Manhattan submarkets are disproportionately impacting the market’s poor results. New York has racked up several unwelcome titles since the start of the pandemic. The market has lost more jobs than any other market, shedding over 1 million positions in the year-ending July. Throughout the summer, rent collections have been among the worst nationally. New York suffered the most net move-outs in 2nd quarter, a timeframe typically characterized by high demand. Driving this decline, many of the amenities and quality-of-life aspects that make New York desirable are, at least temporarily, obsolete. While most apartment markets across the nation started seeing occupancy crumble in April, the decline started in March for New York, one of the first U.S. markets hit by COVID-19. After peaking at 97.8% in February, occupancy has come down by 120 basis points (bps), landing at 96.6% in August. Occupancy has fallen in nearly every New York submarket since February, but the steepest declines have taken place in Manhattan. In fact, the Lower East Side – the market’s most expensive area with average monthly rents topping $5,000 – has seen occupancy come down by 350 bps since February. Meanwhile, much of the rest of Manhattan, including the Upper East Side, Midtown East, Midtown West, Lower West Side and the Financial District, saw occupancy come down by roughly 130 bps to 280 bps during the pandemic. Only the Upper West Side avoided a downturn, with occupancy essentially matching the February showing. @include('site.elements.media.image', ['fileId' => 7646, 'attributes' => ['class' => 'aligncenter size-full wp-image-34137', 'border' => '0', 'width' => '680', 'height' => '394']]) The only real progress made in occupancy since February was seen outside of Manhattan. The comparatively more affordable Bronx, Northern Suburbs and Queens neighborhoods logged progress between 20 bps and 50 bps ove...

Apartment Lease Renewal Rates Continue to Climb

2026-03-04T06:52:44-06:00

U.S. apartment retention keeps climbing after reaching record highs this year. Renewal rates – which had been climbing steadily since 2010 – were boosted in 2020 as many renters were unwilling or unable to relocate due to the COVID-19 pandemic. Data sourced from millions of units running on the RealPage platform indicate that 53.3% of renters with leases expiring in July chose to renew their lease and stay put rather than move out. That is the highest rate on record for July ever recorded by RealPage. Renewal rates are highly seasonal, with renters tending to move around the most in December to begin the calendar year or in the summer months of June through August, before the start of the school year. Throughout the year, renter retention is highest in the spring months of February through May. During the initial pandemic lockdown period in April, the apartment retention rate peaked at 58.5%, the first time the rate has been above 56%. @include('site.elements.media.image', ['fileId' => 7633, 'attributes' => ['class' => 'aligncenter size-full wp-image-34048', 'border' => '0', 'width' => '680', 'height' => '361']]) Renters choosing to renew their leases have been getting a break on renewal rates due to the pandemic. From 2011 to 2019, renewal rent trade-out – the change in rent for renters renewing leases in the same unit – has typically averaged between 4% and 5%, varying little over that time. However, this year has been different. While 2020 started out with rates averaging about 3.5%, renewals plunged into slightly negative territory by April, as landlords essentially halted any planned increases for renters forced to stay in place during mandated lockdowns. @include('site.elements.media.image', ['fileId' => 7634, 'attributes' => ['class' => 'aligncenter size-full wp-image-34049', 'border' => '0', 'width' => '680', 'height' => '368']]) As the lockdowns eased somewhat in May, renewal rates rebounded to average about 2.1%, still less than half the long-term ave...

Worst-Ever GDP Decline Plunges U.S. Into Recession

2026-03-04T06:52:44-06:00

After a decade of robust growth that created millions of new jobs, the U.S. economy saw its deepest decline in history in 2nd quarter 2020. As the nation fell victim to the worst pandemic in modern history, recession took hold. As defined by the National Bureau of Economic Research, recession is a significant decline in economic activity spread across the economy, lasting for at least two quarters. As such, the U.S. officially entered a recessionary period sometime in March. The compounded quarterly annual rate of the nation’s gross domestic product (GDP) fell into decline – by 3.4% – in 1st quarter 2020, according to the U.S. Bureau of Economic Analysis (BEA). That was the first downturn in GDP the nation had seen in nearly a decade. Then, in 2nd quarter, the country registered another record-breaking decline, with a dive of 34.3%. @include('site.elements.media.image', ['fileId' => 7589, 'attributes' => ['class' => 'aligncenter size-full wp-image-33857', 'border' => '0', 'width' => '680', 'height' => '363']]) The last time the U.S. economy recorded an economic contraction was in 2nd quarter 2009, when the GDP shrunk by 1.2%, preceded by declines of 4.5% and 7.2% in the previous two quarters. Prior to 2nd quarter 2020, the largest GDP drop in U.S. history was recorded in 1st quarter of 1949 when the economy shrank by 7.4%. With the most recent numbers diving by more than four times that pace, it’s clear the current recession will be felt in the months and years to come. Some of the industries that were hit the hardest in recent months were healthcare, food services and accommodations and recreation services. In the food services and accommodations industry, the job losses were especially significant, totaling millions nationwide. Attaching a dollar value to the nation’s recent GDP decline, over $2.15 trillion vanished from the U.S. economy just in 2nd quarter 2020. Moreover, since the end of 4th quarter 2019, the U.S. GDP has shrunk by over $2.3 trillion. To...

Top Four Apartment Rent Payment Plans, and Implications for Collections

2025-07-07T10:54:16-05:00

Rent payment plans were almost unheard of in the market-rate apartment business prior to mid-March. But of course, COVID-19 changed our way of doing business overnight. Now, nearly all apartment operators offer some type of rent payment program. Given the newness of these plans, operators had no previous history to understand what works best in providing residents flexibility while protecting property managers from increased delinquencies. With one month now in the books, there’s still much to learn. But based on conversations with apartment operators of varying sizes and in different parts of the country, we’re beginning to understand more about the pros and cons of each option – and what programs could be most sustainable. Here are the four types of payment plans most widely offered, and our thoughts on each. Deferred Payment Plans These are the most common options. Renters who sign these plans agree to make a partial payment in April, and spread the balance out over future rent cycles – typically one to six months. Some operators will even offer to extend the payment window as part of an early renewal. Most property managers ask renters to pay a certain percentage of the rent – usually around 50% – to enter into a deferred plan, while others will accept any amount and carry the balance forward. Pro: These plans allow renters to pay what they can now without penalty for the unpaid balance. That’s a big help for renters short on cash. When tied to an early renewal, these plans also help operators protect occupancy during a period of low new-lease demand. Con: Deferred plans work only if renters can begin paying the normal rent plus the deferred balance within a month or two of signing onto the plan. You can’t return to this well more than once – or maybe twice, at most. Early Verdict: These plans were first designed at the beginning of the COVID-19 crisis, when the conventional view was that retail and...

How the CARES Act Impacts Apartments: FAQs

2025-04-21T16:26:40-05:00

Even prior to the passing of the CARES Act on March 27, we’ve fielded countless questions on the implications to the apartment industry. From evictions to fees to rent payments to mortgage forbearance, here are answers to some of the most frequently asked questions. Mike Semko, RealPage’s vice president of legal and a former counsel to the National Apartment Association, provided answers to many of these questions as part of a webcast on April 2. Q: Do the tenant protections in the CARES Act apply to all apartment properties across the country? A: No. Tenant protections (i.e. eviction limitations) under Article 4024 apply specifically to properties with a federally backed mortgage or participation in one of various federal programs (including Section 8 vouchers and Section 42 tax credits) covered by the Violence Against Women’s Act or the Rural Voucher Program. For conventional properties not tied to a federal program, they would only be included if they have a federally backed mortgage. That would apply to any loan from Fannie Mae and Freddie Mac, the two lending behemoths in the multifamily space, in addition to federal agencies like FHA and HUD. A property with debt held by a private lender (such as a pension fund) or without a federally backed mortgage would not covered by the tenant protections in Article 4024. Q: Does the CARES Act cancel or suspend rent payments? A: No. Leases are still valid, and rent is still due. Q: If a property does not request forbearance, do the tenant protections still apply? A: Yes. The CARES Act applies to any covered property that meets the above criteria, regardless of whether forbearance is requested. The tenant protections are in effect from March 27 to July 25. Q: What does the CARES Act say about evictions? A: Apartments subject to the CARES Act (based on Article 4024 defined above) cannot evict delinquent renters for 120 days. That 120-day period runs from March 27 to July 25. However, the eff...

Southern Schools Tend to See Highest Off-Campus Housing Ratios

2026-03-04T06:52:44-06:00

Students in the South tend to have more options when it comes to off-campus, purpose-built housing than students in other areas of the country. That’s because colleges with the most off-campus housing per student tend to be concentrated in Florida, Texas and other southern states. Of the 175 core universities tracked by RealPage, the off-campus bed-to-total enrollment ratio averages 16.9%. In the southern states, however, that number jumps nearly 10%. Conversely, schools with the highest on-campus bed-to-total enrollment ratios tend to be concentrated in the northeast. Of the RealPage 175, the schools that rank in the top 10 all have at least two off-campus beds per every five students. @include('site.elements.media.image', ['fileId' => 7093, 'attributes' => ['class' => 'aligncenter size-full wp-image-31378', 'border' => '0', 'width' => '680', 'height' => '278']]) Florida State University takes the top spot for the highest off-campus bed-to-student ratio at 69.1%. The Tallahassee university shrank enrollment in 2017, according to most recent enrollment figures available. But that shouldn’t be the norm in the short term as enrollment is projected to grow every year through 2023. Likewise, supply is growing at a rapid rate. Florida State claims top spots on the rankings for schools with the most new supply in both 2018 and 2019. Florida State’s 6,712 on-campus beds are 100% occupied while off-campus stock is a healthy 95.3% occupied. Texas A&M University, which is by far the largest university on our list, also has more than one off-campus bed per every two students. The College Station university, which takes the #2 spot on our list, has been a new supply leader for years, seeing four-figure bed additions since 2012. A&M is forecasted to take a breather in 2019 and 2020 before completion volumes are expected to pick back up in 2021, albeit at a much slower pace than in recent years. The large university has also been growing enrollment every year since 2005, and...

More Beds Per Student on Campuses With Living Requirements

2026-03-04T06:52:44-06:00

A typical university provides enough on-campus housing for roughly a fifth of its student body. However, that percentage tends to jump at universities with on-campus living requirements. In analyzing the on-campus bed-to-enrollment ratios of the core 175 U.S. universities tracked by RealPage, we found that, on average, universities provide enough on-campus beds for 21.5% of its students. But there is a wide range among the 175 universities, and schools with higher on-campus bed-to-student ratios were also the schools more likely to require students to live on-campus a certain number of years. @include('site.elements.media.image', ['fileId' => 7025, 'attributes' => ['class' => 'aligncenter size-full wp-image-31151', 'border' => '0', 'width' => '680', 'height' => '266']]) Among the RealPage 175, Eastern Illinois University had the most on-campus beds per student in 2017. The school, which has about 5,500 undergrads and 1,500 graduate students, requires freshmen to live on-campus. The university’s decade-long shrinking enrollment has contributed to its growing bed-to-student ratio. While the university’s supply has been shrinking slightly as small amounts of rooms are taken out of commission, enrollment has been declining at a faster rate. In turn, on-campus occupancy stands at a measly 36%. The on-campus bed-to-student ratio has been growing since about 2005. Meanwhile, the off-campus bed-to-student ratio has also been growing, but at a slower pace, going from about 5.4% in 2007 to 11.5% in 2017, the latest year for which data is available. At #2, Savannah State has also seen shrinking enrollment on and off over the last couple years. The Georgia school, which has about 4,500 students, has a 62.2% on-campus bed-to-student ratio and enough private, off-campus beds for only about a 3% of students. Occupancy on campus sits around 90%. Savannah State, which doesn’t have an on-campus living requirement, isn’t expected to see any new on-campus supply until 2020. In Ind...

California Markets Ranked by Apartment Rent Per Square Foot

2025-01-22T03:13:07-06:00

While each of the eight largest California apartment markets commands rents per square foot above the U.S. norm, prices vary between locations. In fact, the most expensive apartment market among California’s major metros has a per-square-foot price tag of more than twice its least expensive counterpart. San Francisco rents average $4.21 per square foot in February 2019, outpacing the state’s second most expensive market – San Jose – by exactly $1.00. In the third ranked, Bay Area market, Oakland, rents per square foot run $2.78, followed by Los Angeles ($2.67), Orange County ($2.33) and San Diego ($2.21). The only two California markets to record rates below the West region average of $2.00 were Riverside-San Bernardino, with rents of $1.70 per square foot, and Sacramento, with a price per square foot of $1.65. Not surprisingly, even the worst California performance ran ahead of the U.S. average of $1.52.

University Living Requirements Affect Off-Campus Student Housing

2026-03-04T06:52:44-06:00

In recent years, several universities have changed on their policies to require certain undergraduates to live on campus. Most of the recent policy changes affect freshmen, but some affect sophomores and juniors. The requirements are aimed at enhancing student experience and academic achievement. But such changes in living requirements have shown to impact the off-campus student housing market. Among the 175 core universities tracked by Axiometrics, a RealPage company, 101 had living requirements in place for the fall 2018 semester. The majority of these schools – 74 – require freshmen to live on campus, while living requirements at 26 of these universities also include sophomores. One – Notre Dame – requires juniors live on campus. Notre Dame’s new junior residency requirement makes the university one of four that are implementing new on-campus living requirements this fall. The other three are Louisiana State (none to freshman), San Diego State University (freshman to sophomore) and University of New Mexico (none to freshman). Last year, Notre Dame required only freshmen to live on campus. How might these requirements impact the off-campus student housing markets at each school? Changes implemented at four schools in for fall 2017 semester provide some insights. On average, those schools saw occupancy among on-campus housing increase 690 basis points (bps), while off-campus occupancy took a hit of 140 bps. @include('site.elements.media.image', ['fileId' => 6811, 'attributes' => ['class' => 'aligncenter size-full wp-image-30339', 'border' => '0', 'width' => '680', 'height' => '403']]) While the group of four schools saw occupancy patterns shift with on-campus living requirements, the impacts at each individual campus varied. New Mexico State University For instance, New Mexico State University changed from not having an on-campus living requirement prior to 2017 to one requiring all students with freshman status to live in university-owned housing. That year...

Job Data Revisions Shift Employment Picture for 2017

2026-03-04T06:52:44-06:00

Job growth numbers may have been overstated in 2017, but revisions weren’t as sharp as in previous years. That’s the takeaway from the latest data revisions by the Bureau of Labor Statistics (BLS). At the beginning of each year, the BLS releases revised job numbers for the previous year. This revised data contains additional information that was not available at the time of the initial release and provides a more accurate depiction of the jobs each metro gained or lost. According to the new figures, the U.S. added 2.26 million jobs in 2017. That revised number is down by 28,000 positions, or 1.2%, from the initial figure. However, adjustments were more significant in some metro areas – especially those in which the initial data was overstated. The most drastic downward revision registered in Boston. Initial data from the BLS put job growth in Boston at 55,800 jobs in 2017, positioning the metro among the nation’s leaders for annual employment gains. But revised figures indicate that number was overstated by 32,100 jobs. The downward revision of 58% leaves annual job growth in Boston at 23,700 positions, knocking the metro down to the #20 spot for employment change in the U.S. during 2017. Also claiming a spot among national job growth leaders in the initial data was Minneapolis, where the BLS reported gains of 46,700 jobs. Revisions cut that total essentially in half, revealing the metro actually gained 22,100 jobs in 2017, ranking the metro at #27 in the nation. @include('site.elements.media.image', ['fileId' => 6674, 'attributes' => ['class' => 'aligncenter size-full wp-image-29306', 'border' => '0', 'width' => '697', 'height' => '348']]) Miami, Chicago and the Washington, DC area saw downward revisions near the 20,000-job mark. The nation’s capital generally ranks among the country’s leaders in job production and initially it was reported at #5 in the nation with 55,000 new positions. But the revisions pushed DC to #11 with the gain of 37,800 jobs. Atlant...

Invitation, Starwood Slate ‘Merger of Equals’ in Single-Family Rentals

2026-02-25T08:18:24-06:00

Invitation Homes Inc. and Starwood Waypoint Homes plan to merge in a $4.3 billion deal that will result in a joint portfolio of nearly 82,000 single-family rental homes. A new report from Axiometrics, a RealPage company, examines the merger and how it could affect the investment-grade apartment market.

New Deliveries and Performance in Student Housing Markets

2026-03-04T06:52:44-06:00

The growth in the student housing sector has continued through 2016 and into 2017 as more and more investors entered the space to develop additional assets at universities across the country. The expansion of new privately owned student housing supply seems to have a natural effect on the performance of select markets. Nationwide, the student housing industry is on track to receive slightly less supply in Fall 2017 than it did last fall. About 47,000 beds are scheduled to be delivered this fall (more than 1,000 of those beds have already delivered, as they were holdovers from construction delays last fall), compared to more than 48,000 beds that came to market in 2016. Though new supply is slightly lower, deliveries at the national level are still up relative to other years in the cycle and previous cycles. More than 330,000 new beds have come to market since 2011. @include('site.elements.media.image', ['fileId' => 6243, 'attributes' => ['class' => 'aligncenter size-full', 'border' => '0']]) There is little reason to fear that new supply will not be absorbed, even though leasing velocity is slightly lower in 2017. Leasing velocity remained ahead of Fall 2016 for the first few months of the 2017-2018 leasing season, and tightened in the months after. In March, prelease increased at a lower level than it did in 2016, but at a higher rate than 2015. As shown below, March’s average leasing velocity was slightly above 60%, some 210 basis points (bps) below March 2016 but 280 bps above March 2015. @include('site.elements.media.image', ['fileId' => 6244, 'attributes' => ['class' => 'aligncenter size-full', 'border' => '0']]) Out of more than 300 universities with some type of privately-owned student housing, the top 20 universities with the most supply account for one-third of the total supply delivered in the current development cycle. @include('site.elements.media.image', ['fileId' => 6245, 'attributes' => ['class' => 'aligncenter size-full', 'border' => '0']]) Am...

Where Are LIHTC Units Most Scarce? MPF Research Examines Metro-Level Availability

2026-03-04T06:52:44-06:00

The low-income housing tax credit (LIHTC) is one of the most popular and widely used programs to develop housing for income-burdened households. Despite its wide use, however, a large disparity exists between the number of LIHTC units and the number of low-income households at the national level. According to the National Low Income Housing Coalition, there are approximately 11.4 million households that fall under the low-income definition. A low-income household is one whose annual income is 30% of the metro area’s median or less. Since its inception in 1986, the National Association of Homebuilders estimates 2.7 million rental units have been developed leveraging financing through the LIHTC. In certain metro areas, the disparity is even larger. Aggregating property-level data from the National Housing Preservation Database and pairing it with MPF Research and U.S. Census Bureau data, we estimate where the greatest mismatches exist between estimated low-income households and LIHTC units. Phoenix Leads the Nation in Scarcity of LIHTC Units We highlight where LIHTC units are most scarce and pair this data with population estimates of household counts were median area income falls below 30% area median income (AMI). From a methodology perspective, we included properties that could also receive funding by other affordable programs such as other project-based programs, need-based programs or community block grants. Looking at the MPF Research top 50 apartment markets, there are an estimated 12.3 units for every 100 low-income households. @include('site.elements.media.image', ['fileId' => 6232, 'attributes' => ['class' => 'aligncenter size-full wp-image-26719', 'border' => '0', 'width' => '980', 'height' => '409']]) By metro, Phoenix ranked the lowest out of the MPF Research top 50 apartment markets for the number of units funded by LIHTC available for every 100 low-income households, at 6.08 LIHTC units per 100 low-income households. In Phoenix, we estimate 16.4% o...

Axiometrics to be Acquired by RealPage, Merge With MPF Research

2025-04-21T18:00:53-05:00

RealPage has announced plans to acquire Axiometrics, a leading provider of multifamily market data. Axiometrics will merge with MPF Research, further broadening the scope of RealPage’s market intelligence arm. Additionally, RealPage has entered into a long-term relationship with Real Capital Analytics® (RCA). The data analytics power of RealPage, combined with data from Axiometics, MPF Research and RCA, will create a unique, powerful platform for clients. “The acquisition of Axiometrics furthers our goal to become the definitive source for accurate data intelligence regarding the acquisition, operation and disposition of every market-rate apartment in the U.S.,” said Steve Winn, Chairman and CEO of RealPage.

Apartment Construction is Taking Longer Than Ever

2026-03-04T06:52:44-06:00

Living in Dallas, I am reminded daily of the immense scope of development underway, as cranes line the highways throughout the city. This is a trend that seems to be happening all over the country. There have been more than 750,000 new units added to the U.S. apartment stock in the last three years. That is the highest tally ever recorded since MPF Research began tracking pipeline data – and that number of new deliveries likely won’t peak until late 2017. With so much supply underway, we wanted to know whether the robust pipeline was further pushing out construction timelines. From looking at the underlying data from MPF Research, we found that the average length of construction has gotten longer. Furthermore, the data also shows that the composition of new apartment stock has evolved to produce less low-rise construction than ever. Construction activity has increased every year since the end of 2011, when there were about 190,000 units under construction. Contrast that with the current construction level, around 560,000 units and nearly 1.7 times the decade average. But the interesting story lies in the lengthening construction trends and the shift toward denser development. The average time it takes to complete a new apartment project has been climbing since 2012. Intuitively, it makes sense that high-rises take longer to build than mid- or low-rises. High-rise developments regularly face intensified headwinds, including those from zoning restrictions, land acquisition, community opposition, contaminated sites, longer permitting processes, construction lead-times, complex financing and higher materials costs. Shorter buildings in less dense areas don’t face those hurdles, at least not to the same degree. These headwinds have caused high-rise construction times to lengthen. The average construction time of a high-rise apartment building once permits are approved is currently around 24 months, compared to 17.5 months in 2013. But that protraction has been seen in a...

The Nation’s 10 Busiest Submarkets for Construction: Uptown/South End Charlotte, North Carolina

2026-03-04T06:52:44-06:00

Taking the top spot on our list of The Nation’s 10 Busiest Submarkets for Construction is Uptown/South End in the Charlotte metro. This submarket’s inventory growth rate since 2012 is 107.7%, 8.8 percentage points higher than the #2 submarket, Frisco/Prosper. Submarket inventory growth rate calculations include new apartment supply since 2012 plus units under construction at the end of 1st quarter 2016. Turning Uptown/South End’s growth rate into an actual unit count, the submarket has received 4,093 new apartments since 2012 and had an additional 4,874 units under construction in 1st quarter 2016. Of those units, 2,524 should be complete by the end of 2016. All units currently under construction are conventional housing units, meaning that no affordable, student or senior housing was under way as of 1st quarter 2016. So what is it that is driving apartment growth in the Uptown/South End Charlotte submarket? Let’s take a look at the area’s history, which will give us a good idea. @include('site.elements.media.image', ['fileId' => 6037, 'attributes' => ['class' => 'aligncenter size-full wp-image-25289', 'border' => '0', 'width' => '1600', 'height' => '3312']]) History In the early 1980s, downtown Charlotte was pretty much a 9-to-5 area – workers drove in to the downtown area, worked their 9-to-5 shifts and went back to their homes in other parts of the metro. Later in the decade, however, there was a big push by the city of Charlotte to make the downtown area more vibrant. A huge campaign was then launched, and the downtown area was rebranded as Uptown Charlotte. The campaign was a catalyst to shed positive light on the previously work-centric area and to promote the area as a desirable, highly livable, group of neighborhoods. It took quite some time for the campaign to really pay off, as the area didn’t outgrow its 9-to-5 label until the 2000s. However, the wait proved to be worth it. The campaign spurred positive change that continues to unfold 20 years later....

The Nation’s 10 Busiest Submarkets For Construction: Downtown/Highlands/Lincoln Park, Colorado

2026-03-04T06:52:44-06:00

Taking the #7 spot on our list of The Nation’s 10 Busiest Submarkets For Apartment Construction is Downtown/Highland/Lincoln Park in the Denver/Boulder metro. This submarket’s inventory growth rate since 2012 is 71.0%, including new apartment supply plus units under construction at the end of 1st quarter 2016. Converting Downtown/Highlands/Lincoln Park’s growth rate into an actual unit count, the submarket has received 4,824 new apartments since 2012 and had an additional 4,910 units under construction in 1st quarter 2016. Of those units, 2,835 should be complete by 1st quarter 2017. The Denver/Boulder metro as a whole has received significant attention after several years of solid performance. Downtown/Highlands/Lincoln Park has strong fundamentals to support the growing community including a thriving economy and business environment backed by exceptional higher-education options. The submarket is composed of around 14 of the area’s most popular neighborhoods. Most of the apartment activity is located in the downtown area, particularly around the submarket’s midline in Central Platte Valleyc (CPV)/Union Station and Lower Downtown (LoDo). The submarket’s proximity to other popular areas of Denver such as Ballpark, Uptown and Capitol Hill, as well as its access to major highways and ample public transportation options, position the submarket as a prime location for construction. The area also provides endless entertainment options. From pro football and craft beers to luxury spas and premier shopping, this submarket has it all. Let’s take a deeper look to see what developers see in Downtown/Highlands/Lincoln Park to bring so much apartment construction to the submarket. @include('site.elements.media.image', ['fileId' => 6024, 'attributes' => ['class' => 'aligncenter size-full wp-image-25191', 'border' => '0', 'width' => '1600', 'height' => '3786']]) Location and Transportation However, locals do not need to leave the submarket to have fun or get to work. There a...

The Nation’s 10 Busiest Submarkets For Construction: Cedar Park, Texas

2026-03-04T06:52:44-06:00

Landing in the #10 spot on our list of rapid inventory growth is Austin’s Cedar Park submarket. The submarket encompasses various Williamson County cities including Cedar Park, Leander and Liberty Hill. Cedar Park’s existing apartment base expansion rate since 2012 is 63.6%. Turning that percentage into a unit count, the submarket has received 2,947 new apartments since 2012, and recorded an additional 1,672 units under construction at the end of 1st quarter 2016, all of which should complete by 1st quarter 2018. Most of the construction activity has occurred around the southern region of the submarket, near the intersection of Highway 45 and Highway 183 and north along the Highway 183 corridor. What makes Cedar Park such a hot ticket item for apartment development? There are quite a few reasons, so let’s dive in. @include('site.elements.media.image', ['fileId' => 6017, 'attributes' => ['class' => 'aligncenter size-full wp-image-25166', 'border' => '0', 'width' => '800', 'height' => '2051']]) Location, Location, Location This small but fast-growing submarket includes a couple major suburbs of Austin, starting just 17 miles northwest of Texas’ capital city. It is located west of I-35, where the desirable Texas Hill Country area of the metro begins. The submarket has also seen an uptick in retail development and is within close proximity to the Lake Travis and other affluent areas of the Austin metro. The submarket also boasts plentiful park systems, prime shopping destinations and top-ranked public schools. This provides the Cedar Park submarket’s residents with access to numerous resources and amenities without the high home prices that have long been the norm in surrounding areas. Therefore, you get the beautiful Hill Country views without the costly price tag – count us in! Accessibility to Major Employment Centers Although this commuter area is a pretty good hike from downtown Austin, it is located in Austin’s high-growth corridor along Highway 183, which p...

MPF Research Examines Nation’s 10 Busiest Submarkets For Apartment Construction

2025-07-07T10:57:15-05:00

The U.S. apartment market has seen elevated construction levels in this cycle. Since 2012, inventory across the nation’s top 100 metros has expanded by around 820,000 units, with another 491,945 units under construction at the end of 1st quarter 2016. That adds up to an 8.9% growth in the number of U.S. apartments. But construction activity has been concentrated in some spots more than others. On a regional level, the South saw the most, with construction growing the region’s apartment inventory 12.2% since 2012. With inventory expansion of only 5.1%, the Northeast recorded slower growth than the West and Midwest regions. And within the four regions, certain metros have stood out for growth this cycle. Drilling down further, some submarkets have seen staggering inventory expansion. As real estate is local, MPF Research has identified the nation’s 10 busiest submarkets for construction in this cycle. The top 10 were determined based on inventory growth rates including completions since 1st quarter 2012 and ongoing construction at the end of 1st quarter 2016. Each of the top 10 experienced inventory growth of more than 60%. Some saw inventory double. Where are these submarkets, and why have they attracted so much development? MPF Research takes a deeper look at those questions in this series highlighting each of the top 10 submarkets: 10. Cedar Park, Texas 9. Far Northwest San Antonio, Texas 8. Central Orlando, Florida 7. Downtown/Highlands/Lincoln Park, Colorado 6. North San Jose/Milpitas, California 5. Navy Yard/Capitol South, District of Columbia 4. Downtown Houston/Montrose/River Oaks, Texas 3. Central Nashville, Tennessee 2. Frisco/Prosper, Texas 1. Uptown/South End Charlotte, North Carolina

Size Matters: Investigating Operating Expenses Across Multifamily Product

2026-03-04T06:52:44-06:00

The volume of investment in the multifamily segment has grown considerably over the last 10 years, and cap rates have compressed to record lows. According to Real Capital Analytics, the dollar volume for multifamily transactions has grown to over $131 trillion as of 1st quarter 2016, up from $106 trillion reported in 1st quarter 2006. In recent years, Fannie Mae and Freddie Mac have driven most investment activity, followed by banks. Over the latest development cycle, higher-yield investment opportunities in multifamily have generally become more difficult to identify and pursue; margins for NOI grew for product under the purview of institutional players, generally. As such, institutional owners and operators place greater emphasis on operational efficiency and spend management. With this in mind, multifamily product is widely diverse in terms of composition of structure, height, number of units, amenities, as well as other characteristics. As such, there are multiple strategies firms can adopt to mitigate expense and some have a better track record of executing this than others. Using expense data from NCRIEF, the focus of this piece is to highlight where expenses have been contained the most (and least) across different multifamily product. This piece probes the relationship of total expenses and total income over time, but does not explicitly examine margins of NOI. Expense Ratio for All Multifamily Product First, using an expense ratio, we can confirm operating expenses for professionally managed apartment product has trended down over the last 10 years. On average, all apartment product registered an expense ratio of 0.43 during this time frame. The operating expense ratio is determined by taking total expenses and dividing by total rental income. This is a useful metric in measuring operational efficiency and can be leveraged in investigating any industry. Further, it’s important to note we are taking total expenses, which i...

Property Classification: It’s Important to Get Right

2026-03-04T06:52:44-06:00

“Beauty is in the eye of the beholder.” Margaret Wolfe Hungerford was believed to have first written these famous words in the mid-19th century. The idea is simple yet profound. It suggests that beauty is created by the observer. For example, some people might look at this painting by Mark Rothko and not appreciate the elegant artistry. But back in May of 2015 someone liked the Rothko piece so much they paid $46.5 million for it. Obviously the buyer beheld a beautiful and transcendent masterpiece. But others might look at the eight foot tall painting and see nothing more than a blue and yellow canvas. The point is, while majority consensus can often agree, beauty is still universally subjective. And the opinion is particularly biased through the eyes of the owner. The same concept is true in real estate. Apartment owners take pride in the assets they own, and they should. Owners want rental rates to be competitively priced to their peers. But to benchmark accurately, the biases toward the subject property have to be replaced with true statistical measurement. What are you getting at Brandon? I am talking about the property classification system that’s ingrained in commercial real estate (CRE). CRE has traditionally been split into asset classes based on quality. While the consensus among the CRE community is often similar, the science of classifying has remained largely subjective. Here are some typical attributes of Class A (“Top quality”) assets: Highest quality Newest, modern architecture Tallest Highest price per square foot Latest technology Prime location, very accessible Luxurious amenities and finishes Professionally managed And of course, highest rents Anything less than the best is usually “downgraded” to a Class B or C. But the wide degree of subjectivity can lead to differing opinions of classification. While there is validity to using many of these attributes to classify, inherent biases can still arise. One of the most common approach...

The Nation’s Top 10 Busiest Submarkets: 1. Uptown/South End Charlotte, NC

2026-03-04T06:52:44-06:00

The U.S. apartment market has seen elevated construction levels in this cycle. But construction activity has been concentrated in some spots more than others, and MPF Research has identified the nation’s 10 busiest submarkets for construction in this cycle. The submarkets were identified based on inventory growth since 2012, including the total number of units completed since 1st quarter 2012 and the total number of units under construction at the end of 3rd quarter 2014. Why have these spots attracted so much development? We’ll take a deeper look in this series highlighting each of the top 10 submarkets. 10. Cedar Park, Texas 9. Far North Central San Antonio, Texas 8. Downtown Indianapolis, Indiana 7. Far Northwest San Antonio, Texas 6. Frisco/Prosper, Texas 5. Mooresville, North Carolina 4. Central Nashville 3. Franklin/Williamson County, Tennessee 2. North San Jose/Milpitas, California Uptown/South End, Charlotte Taking the top spot on our list of the 10 fastest-growing apartment submarkets is Uptown/South End in the Charlotte metro. This submarket’s inventory growth rate since 2012 is 81.9% – 15.3 percentage points higher than the No. 2 submarket, North San Jose/Milpitas. Submarket inventory growth rate calculations include new apartment supply since 2012 plus units under construction at the end of 3rd quarter 2014. Turning Uptown/South End’s growth rate into an actual unit count, the submarket has received 2,621 new apartments since 2012 and had an additional 3,545 units under construction in 3rd quarter 2014. So what is it that is driving apartment growth in the Uptown/South End Charlotte submarket? Let’s take a look at the area’s history, which will give us a good idea. @include('site.elements.media.image', ['fileId' => 5899, 'attributes' => ['class' => 'aligncenter size-full wp-image-21191', 'border' => '0', 'width' => '720', 'height' => '1557']]) In the early 1980s, downtown Charlotte was pretty much a 9-to-5 area – workers drove in to the dow...

The Nation’s Top 10 Busiest Submarkets: 3. Franklin/Williamson County, Tennessee

2026-03-04T06:52:44-06:00

The U.S. apartment market has seen elevated construction levels in this cycle. But construction activity has been concentrated in some spots more than others, and MPF Research has identified the nation’s 10 busiest submarkets for construction in this cycle. The submarkets were identified based on inventory growth since 2012, including the total number of units completed since 1st quarter 2012 and the total number of units under construction at the end of 3rd quarter 2014. Why have these spots attracted so much development? We’ll take a deeper look in this series highlighting each of the top 10 submarkets. 10. Cedar Park, Texas 9. Far North Central San Antonio, Texas 8. Downtown Indianapolis, Indiana 7. Far Northwest San Antonio, Texas 6. Frisco/Prosper, Texas 5. Mooresville, North Carolina 4. Central Nashville Franklin/Williamson County, Tennessee Franklin/Williamson County places in the No. 3 slot on our list of rapid inventory growth submarkets. The Nashville, Tennessee submarket’s inventory growth rate since 2012 is 48.1%, which includes new apartment supply and units under construction at the end of 3rd quarter 2014. Putting that percentage into numbers, Franklin/Williamson County has received 1,467 new units since 2012, and had another 1,225 units under construction in 3rd quarter 2014. So what makes this area of Nashville so hot for apartment development? The answer if fairly straight forward: a growing population and economy, award-winning school districts and high quality of life. @include('site.elements.media.image', ['fileId' => 5893, 'attributes' => ['class' => 'aligncenter size-full wp-image-21126', 'border' => '0', 'width' => '720', 'height' => '1748']])Location Franklin/Williamson County is located roughly 20 minutes south of our No. 4 submarket, Central Nashville. It encompasses part of the city of Brentwood and all of the city of Franklin, both of which are in Williamson County. Bisecting the submarket is Interstate 65, a north-south rout...

The Nation’s Top 10 Busiest Submarkets: 4. Central Nashville, Tennessee

2026-03-04T06:52:44-06:00

The U.S. apartment market has seen elevated construction levels in this cycle. But construction activity has been concentrated in some spots more than others, and MPF Research has identified the nation’s 10 busiest submarkets for construction in this cycle. The submarkets were identified based on inventory growth since 2012, including the total number of units completed since 1st quarter 2012 and the total number of units under construction at the end of 3rd quarter 2014. Why have these spots attracted so much development? We’ll take a deeper look in this series highlighting each of the top 10 submarkets. 10. Cedar Park, Texas 9. Far North Central San Antonio, Texas 8. Downtown Indianapolis, Indiana 7. Far Northwest San Antonio, Texas 6. Frisco/Prosper, Texas 5. Mooresville, North Carolina Central Nashville, Tennessee Landing in the No. 4 spot on our list of rapid inventory growth is Central Nashville. This submarket’s apartment inventory expansion rate since 2012 is 48.0%. That calculation includes new apartment supply plus units under construction at end of 3rd quarter 2014. Turning that percentage into an actual unit count, Central Nashville has received 1,965 new apartments since 2012, and saw an additional 2,720 units under construction in 3rd quarter 2014. So, the question is why the influx of apartments? Let’s take a look at a few demand drivers that are making Central Nashville such a hotbed for apartment development. @include('site.elements.media.image', ['fileId' => 5888, 'attributes' => ['class' => 'aligncenter wp-image-21093 size-full', 'border' => '0', 'width' => '760', 'height' => '1830']]) Location The Central Nashville submarket includes the metro’s downtown area, which has exploded with growth over the past 10 years. The downtown area’s population has almost quadrupled since 2000, to 7,685 people in 2014, according to the Nashville Downtown Partnership. The big driver of growth in and around the downtown Nashville area has been an ongoi...

The Nation’s Top 10 Busiest Submarkets: 5. Mooresville, North Carolina

2026-03-04T06:52:44-06:00

The U.S. apartment market has seen elevated construction levels in this cycle. But construction activity has been concentrated in some spots more than others, and MPF Research has identified the nation’s 10 busiest submarkets for construction in this cycle. The submarkets were identified based on inventory growth since 2012, including the total number of units completed since 1st quarter 2012 and the total number of units under construction at the end of 3rd quarter 2014. Why have these spots attracted so much development? We’ll take a deeper look in this series highlighting each of the top 10 submarkets. 10. Cedar Park, Texas 9. Far North Central San Antonio, Texas 8. Downtown Indianapolis, Indiana 7. Far Northwest San Antonio, Texas 6. Frisco/Prosper, Texas Mooresville, North Carolina Placing in the No. 5 slot on our list of rapid inventory growth submarkets is Mooresville in the Charlotte metro. Mooresville’s apartment inventory growth rate since 2012 is 44.8%, which includes both new apartment supply and units under construction at the end of 3rd quarter 2014. Putting that percentage into numbers, the small submarket of Mooresville has received 759 new units since 2012, with another 541 units under construction in 3rd quarter 2014. So what makes this area of Charlotte so hot for apartment development? @include('site.elements.media.image', ['fileId' => 5884, 'attributes' => ['class' => 'aligncenter size-full wp-image-21068', 'border' => '0', 'width' => '600', 'height' => '1768']]) Location The Mooresville submarket is Charlotte’s far northern-most submarket. While other small towns are located within the submarket, the town of Mooresville, located right off Interstate 77, is the driver of growth within the submarket. Interstate 77 runs straight through the submarket, giving excellent access to downtown Charlotte, which is approximately 20 miles away. On the western edge of the submarket lies a fraction of Lake Norman. Growth Most importantly, Mooresvi...

The Nation’s Top 10 Busiest Submarkets: 6. Frisco/Prosper, Texas

2026-03-04T06:52:44-06:00

The U.S. apartment market has seen elevated construction levels in this cycle. But construction activity has been concentrated in some spots more than others, and MPF Research has identified the nation’s 10 busiest submarkets for construction in this cycle. The submarkets were identified based on inventory growth since 2012, including the total number of units completed since 1st quarter 2012 and the total number of units under construction at the end of 3rd quarter 2014. Why have these spots attracted so much development? We’ll take a deeper look in this series highlighting each of the top 10 submarkets. 10. Cedar Park, Texas 9. Far North Central San Antonio, Texas 8. Downtown Indianapolis, Indiana 7. Far Northwest San Antonio, Texas Frisco/Prosper, Texas Landing in the No. 6 spot on our list of rapid inventory growth is the Frisco/Prosper submarket in the Dallas metro. Frisco/Prosper’s inventory expansion rate since 2012 is 44.5%. That calculation includes new apartment supply plus units under construction at the end of 3rd quarter 2014. Turning that percentage into an actual unit count, Frisco/Prosper has received 1,612 new apartments since 2012, and had an additional 2,081 units under construction at the end of 3rd quarter 2014. @include('site.elements.media.image', ['fileId' => 5880, 'attributes' => ['class' => 'size-full wp-image-21053 aligncenter', 'border' => '0', 'width' => '600', 'height' => '1558']]) Location The Dallas region is primarily growing north, where the Frisco/Prosper submarket is located. The Frisco/Prosper submarket is north of Highway 121, west of Custer Road, east of Lake Lewisville and extends north to the city of Celina. The Dallas North Tollway (DNT) cuts through the middle of the submarket. The most important part of its location is that Highway 121/DNT corridor, where A LOT of office/retail/apartment construction is going on. The Frisco/Prosper submarket is considered to be a “commuter” town, but with continued growth over th...

The Nation’s Top 10 Busiest Submarkets: 7. Far North West San Antonio, Texas

2026-03-04T06:52:44-06:00

The U.S. apartment market has seen elevated construction levels in this cycle. But construction activity has been concentrated in some spots more than others, and MPF Research has identified the nation’s 10 busiest submarkets for construction in this cycle. The submarkets were identified based on inventory growth since 2012, including the total number of units completed since 1st quarter 2012 and the total number of units under construction at the end of 3rd quarter 2014. Why have these spots attracted so much development? We’ll take a deeper look in this series highlighting each of the top 10 submarkets. Far North West San Antonio, Texas Placing in the No. 7 spot on our list of rapid inventory growth submarkets is Far Northwest San Antonio in San Antonio. Far Northwest San Antonio’s apartment inventory expansion rate since 2012 is 44.2%, including new apartment supply plus units under construction at the end of 3rd quarter 2014. Putting that percentage into numbers, Far Northwest San Antonio has received 2,741 new units since 2012, with another 1,473 units under construction. And like many submarkets on our list, location is a key component of what makes this area of San Antonio so hot for apartment development. @include('site.elements.media.image', ['fileId' => 5877, 'attributes' => ['class' => 'aligncenter size-full wp-image-21040', 'border' => '0', 'width' => '632', 'height' => '1749']])Location Far Northwest San Antonio is the next door neighbor to our No. 9 submarket, Far North Central San Antonio, and has all the characteristics (plus a few more) that have made Far North Central so attractive. The Far Northwest San Antonio submarket borders the west side of the Far North Central San Antonio submarket, located in the rolling plains of the gorgeous Texas Hill Country. Far Northwest San Antonio is one of the higher-end areas of San Antonio and has well-known master-planned communities such as The Dominion, Stonewall Ranch and Cresta Bella, to name a few. Sim...

The Nation’s Top 10 Busiest Submarkets: 8. Downtown Indianapolis, Indiana

2026-03-04T06:52:44-06:00

The U.S. apartment market has seen elevated construction levels in this cycle. But construction activity has been concentrated in some spots more than others, and MPF Research has identified the nation’s 10 busiest submarkets for construction in this cycle. The submarkets were identified based on inventory growth since 2012, including the total number of units completed since 1st quarter 2012 and the total number of units under construction at the end of 3rd quarter 2014. Why have these spots attracted so much development? We’ll take a deeper look in this series highlighting each of the top 10 submarkets. Downtown Indianapolis, Indiana Landing in the No. 8 spot on our list of fast-growing apartment submarkets is Downtown Indianapolis. This submarket’s inventory expansion rate since 2012 is 44.1%. That calculation includes new apartment supply and units under construction at the end of 3rd quarter 2014. Turning that percentage into an actual unit count, Downtown Indianapolis has received 2,003 new apartments since 2012, with an additional 1,495 units under construction in 3rd quarter 2014. According to the Indianapolis Chamber of Commerce: The metro has more major interstate junctions than any other metro nationwide. Two of the highways that traverse the metro – I-65 and I-70 – merge near the heart of Downtown Indianapolis. This gives travelers good access to the downtown area and residents good access to other areas of the metro. So the question is, why has there been such an influx of apartments? Let’s take a look at a few demand drivers that are making Downtown Indy such a hotbed for apartment development: @include('site.elements.media.image', ['fileId' => 5873, 'attributes' => ['class' => 'aligncenter wp-image-21021 size-full', 'border' => '0', 'width' => '632', 'height' => '1019']]) Location Downtown Indianapolis differs from No. 10 Cedar Park and No. 9 Far North Central San Antonio in that it isn’t a commuter area. Many of its residents choose to live her...

The Nation’s Top 10 Busiest Submarkets: 9. Far North Central San Antonio, Texas

2026-03-04T06:52:44-06:00

The U.S. apartment market has seen elevated construction levels in this cycle. But construction activity has been concentrated in some spots more than others, and MPF Research has identified the nation’s 10 busiest submarkets for construction in this cycle. The submarkets were identified based on inventory growth since 2012, including the total number of units completed since 1st quarter 2012 and the total number of units under construction at the end of 3rd quarter 2014. Why have these spots attracted so much development? We’ll take a deeper look in this series highlighting each of the top 10 submarkets. Far North Central San Antonio, Texas Placing in the No. 9 slot on our list of rapid inventory growth submarkets is Far North Central San Antonio in the San Antonio metro. Far North Central San Antonio’s existing apartment base expansion rate since 2012 is 42.7%. That rate calculation includes new apartment supply (1,742 units) since 2012 and the construction volume (1,220 units) at the end of 3rd quarter 2014. So what makes this area of San Antonio so attractive to apartment developers? Let’s start with its location. @include('site.elements.media.image', ['fileId' => 5869, 'attributes' => ['class' => 'aligncenter size-full wp-image-20989', 'border' => '0', 'width' => '632', 'height' => '1186']])Location Like our No. 10 submarket, Cedar Park, Far North Central San Antonio is located in the vibrant, beautiful Texas Hill Country. The submarket is considered one of the more upscale areas of San Antonio, with such high-end master-planned communities as Sonterra and Stone Oak. The submarket is also considered to be a commuter area, with a primarily residential base. However, there are a few prominent demand drivers within the actual submarket. @include('site.elements.media.image', ['fileId' => 5870, 'attributes' => ['class' => 'aligncenter size-full wp-image-21001', 'border' => '0', 'width' => '809', 'height' => '534']]) Though the submarket is largely made up of r...

The Nation’s Top 10 Busiest Submarkets: 10. Cedar Park, Texas

2026-03-04T06:52:44-06:00

The U.S. apartment market has seen elevated construction levels in this cycle. But construction activity has been concentrated in some spots more than others, and MPF Research has identified the nation’s 10 busiest submarkets for construction in this cycle. The submarkets were identified based on inventory growth since 2012, including the total number of units completed since 1st quarter 2012 and the total number of units under construction at the end of 3rd quarter 2014. Why have these spots attracted so much development? We’ll take a deeper look in this series highlighting each of the top 10 submarkets. Cedar Park, Texas Landing in the number 10 spot on our list of rapid inventory growth is Cedar Park. Cedar Park’s existing apartment base expansion rate since 2012 is 40.9%. Turning that percentage into an actual unit count, the submarket has received 2,233 new apartments since 2012, and recorded an additional 714 units under construction at the end of 3rd quarter 2014, all of which should complete by 3rd quarter 2015. What makes Cedar Park such a hot ticket item for apartment development? There are quite a few reasons, so let’s dive in: @include('site.elements.media.image', ['fileId' => 5867, 'attributes' => ['class' => 'size-full wp-image-20957 aligncenter', 'border' => '0', 'width' => '737', 'height' => '1121']])Source: MPF Research, Moody’s Analytics, cedarparktexas.gov Location, Location, Location This small but fast-growing area is a major suburb of Austin, located just 17 miles northwest of the Texas’ capital city. It’s located west of I-35, where the desirable Texas Hill Country area of the metro begins. Cedar Park is also fortunate to be within close proximity to the Lake Travis area, an established, affluent area of the metro with prime shopping destinations and a plentiful park system. So Cedar Park residents have access to those amenities, without the high home prices that have long been the norm in the Lake Travis area. Therefore, you get the...