RealPage: Apartment Demand Remains Very Strong

(Image courtesy of RealPage)

RealPage, Richardson, Texas, found that year-to-date data points to 2024 shaping up to be one of the strongest years of apartment demand on record.

Through June, 257,000 stabilized apartments were absorbed on net. That’s only about 4,000 units below the all-time high for the period set in the first half of 2021.

Supply levels are even stronger, with 522,743 new market-rate apartments delivered in the year-ending Q2 2024, a 45% increase year-over-year and estimated as the largest delivery since 1986. There were 157,062 delivered in the quarter.

RealPage’s delivery pipeline forecast anticipates there will be 629,000 units delivered in calendar-year 2024, but that will drop in 2025 with fewer apartments under construction.

This environment has affected supply, rent growth and occupancy. The occupancy rate as of Q2 was at 94.2%, below the 10-year average of 95.3% and down year-over-year compared with 94.7% in 2023.

Rent growth was at just 0.2% year-over-year for the quarter. Average monthly rent stood at $1,828, with an average of $2.011 per square foot.

Looking to 2025, RealPage’s economists anticipate a different environment.

“With somewhat weaker supply, robust demand, and a more favorable economy, approximately 40% of the top 50 markets could experience annual rent growth of more than 3%. About 55% of the markets are expected to see rents grow between 2% and 3%, while a little over 5% could record growth below 2% in 2025,” wrote Arben Skivjani Deputy Chief Economist and Director of Forecasting.