Providence Performance Picks Up Momentum

  in   Insights

The apartment market performance in Providence has made notable progress in recent months. As of May, occupancy stood at one of the tightest rates in the nation at 98.3%. This was well above Providence’s already elevated five-year norm of 97%, and the first time occupancy in this market has pushed beyond the 98% mark in at least two decades. With such tight occupancy conditions, operators have felt comfortable pushing rental rates. Providence rents were up 6.8% year-over-year as of May. While that is a middle-tier performance nationwide, it’s the market’s strongest showing in over 10 years. The impact of COVID-19 on rent change was much more mild in Providence than in some of the nation’s  other major apartment markets. After bottoming out at modest annual cuts of 0.6% in June 2020, rent growth returned to Providence by July, and increases have been notable since. Helping market fundamentals in Providence is a workforce insulated in education and healthcare, and limited competition from new apartment supply in recent years.