It has been 36 years since the U.S. had so many apartments available for rent, according to a new RealPage report. And the effect has been predictable: rents have fallen in markets where there has been the most growth, even though demand has rebounded.
Indeed, in 4Q 2023 —a traditionally slow quarter – 58,000 apartments were absorbed. It was the strongest fourth quarter in 25 years, excluding 2020 and 2021. Even so, it was 11,000 below the average since 2000.
For 2023 as a whole, 234,000 units were absorbed – a figure closer to pre-Covid norms, the report stated. Completions totaled 440,000. That boosted supply to the highest levels since 1987 and pushed apartment occupancy down 80 basis points year-over-year to 94.1% — still within the long-term normal range.
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