RealPage: Apartment Market Resilient

(Image courtesy of RealPage)

RealPage, Richardson, Texas, released its analysis of the apartment market in the second quarter, finding that the U.S. absorbed more than 227,000 units in the period.

RealPage described that result as a “very strong reading for any second quarter.”

However, there was also rapidly declining delivery volume in the quarter, at 108,175 units. While that’s above the country’s long-term average, it’s below the past two quarters.

Average rents grew 0.19% in June, and are up 0.5% annually. The average effective rent is $1,887.

By region, the Midwest saw annual rent increase by 3.2%, and the Northeast saw an increase of 2.8%. The South saw a 1.1% drop and the West saw a 0.1% increase.

Nationwide, occupancy was at 95.6% in June, almost flat (down just 0.09 basis points) from May. But, occupancy has improved 140 basis points year-over-year.

By region, occupancy was 96.4% in the Midwest, 96.9% in the Northeast, 94.8% in the South and 95.6% in the West.

Renewal conversion showed 55.1% of leases renewed in the year-ending June, up about 2% year-over-year.

“If there is a single word that can be assigned to the national apartment market as of mid-year 2025, then that word is resilient,” RealPage Chief Economist Carl Whitaker said. “A noisy economic backdrop including slowing (though above expected levels) job growth, declining consumer and business sentiment, and deeply entrenched uncertainty have yet to deteriorate demand for rental housing. And while headline rent growth may suggest fundamentally weak demand at first glance, the U.S. apartment market’s ability to churn out exceptional demand amid the record supply wave remains a defining storyline for the industry.”

RealPage also recently released an update to its multifamily outlook for the next year, forecasting a national effective rent growth of 2.3%.