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.
