Mild Supply Headwinds in Lower Midwest Result in Steadier Performance

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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.

For more information on the state of apartment markets in the Lower Midwest or Plains region, including forecasts, watch the webcast Market Intelligence: Q2 Lower Midwest/Plains Update.