RealPage: U.S. Apartment Market Saw Demand Slow in Q3

RealPage, Richardson, Texas, reported demand in the U.S. apartment market slowed in the third quarter.

About 637,100 market-rate units were absorbed in the year-ending Q3. That’s down notably from 784,900 absorbed in year-ending Q2. However, it’s above the volume of units absorbed annually on average over the past decade.

“Sluggish new lease activity appears to be the primary driver behind a weaker-than-expected 3rd quarter,” RealPage Chief Economist Carl Whitaker said. “This sluggishness looks to be a reflection of broader macroeconomic headwinds as the nation has seen job growth quickly slow in the past few months.”

Supply volumes are also slowing. Just shy of half a million–474,800 units–saw completed construction in the past year, with about 105,500 in Q3. That’s the third consecutive quarter of decline after a peak in Q4 2024.

Occupancy fell from Q2, down 30 basis points to 95.4%.

Also, average effective asking rents fell 0.3% in Q3 to $1,880, the first time rents have fallen over the summer since 2009. In the year-ending Q3, they were down 0.1%.

That varied by region. In the Midwest, rent was up 2.4%, and in the Northeast it was up 1.9% annually. In the South, it fell 1.6%, and in the West it fell 0.4%.

Almost 22% of apartments were offering concessions in the quarter, with the average concession at 6.2%.