Apartment supply volumes are not expected to return to historically normal levels until at least mid-2025 after hitting a peak last year with a record 588,900 units delivered.

As a result of record supply, properties in the lease-up phase are taking longer to reach stabilization, according to an analysis by RealPage that defines stabilization as 85% occupancy or higher. At the end of last year, conventional properties in initial lease-up were taking about 16 months to reach stabilization. That’s substantially longer than in 2019 when properties were taking an average of 12 months to stabilize.

“That can significantly impact the bottom line for owners and operators," said RealPage. “It’s also not a surprising impact, given the sheer volume of competition coming online in recent years.”