Where New Apartment Demand is Outpacing Supply

They may not represent a majority of the nation’s largest 50 apartment markets, but 14 metro areas have experienced demand outpacing supply in the second quarter, according to RealPage.

Overall, the country absorbed more than 83,400 units between April and June, which wasn’t enough demand for the completion of more than 107,400 units. But those 14 cities that did see demand outpace supply reflected a range of locations from coast to coast and in between in the Heartland.

At the top of this list of demand outstripping supply was Chicago-Naperville-Elgin, Ill.-Ind.-Wis., which had 2,488 completions and absorption of 4,062 units for a big difference of almost 1,600 units. And in an online post on Domu, an article cited how new apartments are emerging all around the city from large buildings to smaller buildings.

Next, in second place, came Virginia Beach-Norfolk-Newport News, Va.-N.C. where only 208 units were completed but 786 were absorbed. In third place was the coastal area of San Diego-Carlsbad, Calif., where 610 units were completed and almost double that number or 1,127 were absorbed.

Then back to the Midwest region of Milwaukee-Waukesha-West Allis, Wis., where 466 units were completed and almost double the number, or 905 units were completed. In fifth place was San Francisco-Redwood City-South San Francisco, Calif., where 287 apartments were built and 660 absorbed. Seattle and its nearby areas of Bellevue and Everett in Wash., were sixth with a larger 1,571 units finished and 1,921 absorbed, more in sync than some of the other markets.

Down to Texas and Houston-The Woodlands-Sugar Land, Tex., where the largest number of units was completed for its seventh place at 4,699 units and a huge demand also of 5,042 absorbed.

Again, back to the Midwest for eighth place with Minneapolis-St. Paul-Bloomington, Minn.-Wis., where 1,760 units were completed and 2,098 were absorbed. San Jose-Sunnyvale-Santa Clara, Calif., followed with a small number of 395 units completed and 572 absorbed. Pittsburgh, Penn., was next with another small number of 395 units completed and 614 absorbed. St. Louis, Mo.-Ill., was 11th with 369 units completed and 527 absorbed. Another Midwest market—Cincinnati, Ohio, Ky.-Ind.–came in 12th with 1,080 units completed and 1,123 absorbed. 

At 13th was the Washington, D.C. area plus Alexandria, Va., Md., and W.Va., with 2,879 units completed and 2,909 absorbed. In last or 14th place was Las Vegas-Henderson-Paradise, Nev., with 1,007 units completed and 1,023 absorbed for a very small differential of 16 units.