Net Move-Outs Continue in Fresno

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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%.