RealPage Q1 Apartment Results: Supply Side Dominates Story

(Image courtesy of RealPage)

RealPage, Richardson Texas, reported that a major influx of apartment supply is continuing to temper rent and occupancy figures in the quarter.

The U.S. absorbed 103,826 apartment units on net through the first quarter. For the trailing year, total absorption was 317,241 units–about 20% higher than the annual absorption rate in the 2010s.

In the first quarter, there were 135,652 apartment units completed; 479,367 in the trailing year.

RealPage noted the annual supply figure is at the highest point since 1986, when 550,000 new units were delivered–but today’s relative expansion rate of 2.5% is below that year’s 3%.

In a sign conditions may be moderating: The delta between supply and demand is narrowing. It currently stands at about 160,000 units, significantly below 530,000 this time last year.

Rent growth remained nearly flat at the end of March–up just 0.2% in the year-ending March. RealPage anticipates that rent growth will continue to remain muted through the year, as the supply-demand relationship continues to moderate.

Occupancy was slightly below normal, at 94.1% in March–flat from February and consistent with long-term averages.