U.S. apartment occupancy is at a near-record level, driven up by unusually strong demand in recent months.
The 3rd quarter 2019 occupancy rate of 96.3% was just shy of the all-time high of 96.4% recorded in late 2000.
“Apartment leasing activity accelerates during the warmer weather months, and demand has been especially strong in this year’s core period of product demand,” RealPage Chief Economist Greg Willett said. “New household formation continues, and rentals are capturing a sizable share of the resulting housing demand.”
Nationally, rents continue to rise at an average annual pace of 3%. But rent growth momentum is shifting among local markets. Most notably, the rent growth pace is accelerating in some Southeast markets but cooling in many major markets in California and Florida.
For more on U.S. apartment performance in 3rd quarter 2019, including a list of top-performing local markets, see RealPage’s recap here.