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South Region Commands Big Demand in 2Q

South Region Commands Big Demand in 2Q

Demand performances were mixed in 2nd quarter, but the South region markets commanded the lion’s share of absorption. National demand in 2nd quarter 2020 totaled roughly 34,000 units. While positive, that number was well behind the typical demand tally seen during the year’s peak leasing season. Of the 20 major metros in the South, 15 saw positive quarterly demand while only five saw net move-outs. Demand leaders were Dallas, Washington, DC, and Houston. The Midwest region, which has been outperforming expectations of late, absorbed a little more than 10,000 units during the quarter. None of the major Midwest markets saw net move-outs in 2nd quarter. Net absorption in the Northeast region was modest, accounting for only 2,000 units. The overwhelming majority of those gains were in Philadelphia. Boston’s net absorption was barely positive, while the remaining five Northeast metros saw net move-outs. Finally, the West region was the lone part of the U.S. to experience net move-outs overall. While more than half of the 15 major markets in that region saw positive absorption, only Denver experienced better-than-modest demand. Meanwhile, large net move-outs in Southern California and the Bay Area accounted for the region’s struggle in 2nd quarter 2020.