Apartment Markets with Positive Annual Demand in 1Q

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.