Excavators, cranes, forklifts and other heavy equipment machines are busy humming as 1 million apartment units are under construction in different markets of the country. And already there's a peak of completed apartments, representing a 50-year high. At the end of the second quarter of 2023, 107,000 units were finished and ready to lease. This robust level of units is expected to continue through 2024 and then ease in 2025.
How does this fit into the overall context of what's happening in the multifamily apartment category? The results at the end of the second quarter reflect stabilizing occupancy rates. Rent growth continues to cool fast. Apartment demand is rising. And net absorption is just short of surging new supply levels, writes Jay Parsons, chief economist at RealPage Analytics in a recent Market Research report.
Following are more results based on his report.
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