Apartment Markets That Defied the 80 BSP Occupancy Drop
San Francisco was the only market to see occupancy increase during the year.
After a highly volatile few years, apartment rent performance continues to find its way back to norms.
RealPage reported that apartment occupancy dropped 80 basis points year-over-year nationally, coming down from 2022 peaks, and returning to its long-term normal range.
However some markets have proven to be outliers, such as San Francisco, according to RealPage analyst Kim O’Brien. It was the only market to see occupancy increase during the year, its rate inching up 10 bps.
San Francisco was a relative outlier during the COVID-19 pandemic, as one of the worst-hit markets during the initial wave when its occupancy dropped as low as 92.2% in 2021, O’Brien reported.
As of December, its rate had recovered to 95%.
RealPage said other markets saw occupancy nudge down modestly in 2023 – about 10 bps – in San Jose and Chicago. Markets with a 20-bps decline in 2023 included West Palm Beach, Richmond, and Minneapolis.
According to its report, a modest 30-bps decline occurred in Seattle, Pittsburgh, Washington, D.C., and Virginia Beach.
Among those markets, December occupancy is still above 95% in San Jose, Chicago, and Virginia Beach.