RealPage: Multifamily Stabilized in 2024

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RealPage, Richardson, Texas, analyzed year-end trends, finding that the multifamily sector stabilized in 2024, with demand matching a 50-year supply peak.

There was a net increase of more than 500,000 apartment units in 2024.

Through 2024, the national occupancy rate held slightly below historical norms and averaged 94.3%. Lease renewals hit a higher-than-normal 55%.

Annual rent growth was close to flat, at less than 1%.

The COVID-era apartment-building boom has begun to moderate, with the lowest number of starts since early 2013.

Looking forward to 2025, RealPage anticipates abundant supply will still be a theme, but will begin to lessen as economic headwinds challenge developers, and some metro areas could see housing challenges beyond 2025.

“The multifamily housing industry has found its footing, with renter demand as strong as it’s ever been, and new housing supply has been robust enough to meet that demand, as seen by the nation’s stabilizing, healthy occupancy rate,” said Carl Whitaker, Chief Economist with RealPage. “We expect this to be the year of the resident based on the increased emphasis on retention, improving affordability and new construction coming online–giving renters more options when choosing their next apartment homes.”

Renters in high-supply areas may see concessions, and retention will continue to be a priority for operators.

Demand will also continue to catch up with supply delivery through the Sun Belt, where rental rate growth will likely be modest, RealPage said. Rents in lower-supply areas are expected to grow at pre-pandemic norms.