Midwest Strength Stems from Stability, Not Apartment Demand
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.
For more information on the state of the Midwest apartment market, including forecasts, watch the webcast Market Intelligence: Q4 Midwest Update.