The Sunbelt has experienced a renewed surge in apartment demand this year after a supply and demand mismatch caused vacancy rates to climb over the past two years. With a significant decline in new construction starts this year, the region is poised for future growth, according to a multifamily report by American Landmark.

Southern markets continue to attract residents and businesses thanks to its favorable climate, economic opportunities and job growth, as well as a business-friendly environment, lower taxes and overall lower cost of living than in other regions of the country. These factors are fueling steady demand for rental properties as people seek accessible and flexible housing options as they follow job opportunities.

With 87% of the nation’s population growth last year, the South remains the most populous region in the country, according to the report. The region added more than 1.4 million people in 2023 to reach a total of more than 130 million residents.