- Across regions, U.S. apartment occupancy rates remain stable or are slightly up, with some markets seeing YoY growth.
- Monthly rents reveal seasonal increases, with May marking the highest rate of change since June 2023.
- Understanding current multifamily resilience can support more strategic decision-making amid supply challenges.
The U.S. apartment market maintains strong occupancy, showcasing resilience despite high supply levels, according to RealPage.
Steady, As She Goes
The U.S. apartment market stayed stable in May, with occupancy holding firm at 94.2% for the seventh consecutive month.
In other words, despite high supply, occupancy remained consistent, reflecting strong demand for apartments nationwide, with renters absorbing new units at healthy rates.
Specifically, occupancy rates have stayed within a very narrow band for 17 months now, stabilizing after a period of easing in 2023.
Mixed Fortunes
Across all regions, occupancy either slightly rose or remained steady in May. Notably, major markets in the Midwest and Northeast saw a 10 bps rise in occupancy MoM. Certain markets, like Richmond, West Palm Beach, and San Francisco, recorded YoY increases.
Meanwhile, some Sun Belt markets, including Dallas and Houston, struggled with lower occupancy levels amid record-high supply.
Diverging Trends, Impacts
Overall, average asking rents were up 0.2% YoY in May. Coincidentally, average asking rent rates have bounced within a narrow band of 0.1% to 0.3% for eight consecutive months now. It’s also a sign of growing stability in the market.
Although national rent growth remained subdued on an annual basis, monthly rent change displayed a more seasonal pattern. Monthly rents in May rose by 0.5%, the highest rate of change since June 2023.
And despite a historical trend of deeper rent cuts in recent years, the market saw a slight rebound in monthly rent growth in 2024, with top performers like Milwaukee and Washington, DC leading the way.
Why It Matters
The consistent occupancy levels and nuanced rent trends in the U.S. apartment market have been showing signs of stability for over half a year. But the story is very different region by region and metro by metro.
