Demand for market-rate apartments in Q1 was the highest first quarter recorded in RealPage’s 32-year data set RICHARDSON, Texas–(BUSINESS WIRE)–RealPage®, a leading global provider of AI-enabled software platforms to the real estate industry, announced today its 2025 first quarter analysis of the multifamily housing market and key indicators to watch in the second quarter and beyond. Overall, the multifamily housing sector’s once-in-a-generation supply wave has crested nationwide, including in roughly 70 percent of the nation’s largest markets. Concurrently, demand for market-rate apartments in the first quarter was the highest first quarter reading ever recorded in RealPage’s 32-year data set. As previously predicted, waning apartment supply coupled with continued strong demand will result in rent growth moving toward more historical normal levels by the end of the year. Q1 Industry Takeaways
Over 116,092 market-rate apartments were delivered across the U.S. over the last three months, a continuation of the 50+ year high in apartment supply that is essentially on par with last quarter’s record high. Demand remained robust as 138,302 units were absorbed over the last three months. U.S. occupancy registered at 95 percent in the first quarter, a historically normal rate that has ticked up over the last year amid strong demand. Average effective asking apartment rents grew 0.8% in the year-ending first quarter. That rate registers below historically normal levels, but has grown modestly in recent months, particularly in metro areas with lower supply. Very strong demand continued across the Sun Belt, particularly in Dallas, Phoenix, Atlanta, Austin and Charlotte. Tampa, Minneapolis and Southern California also posted stronger than normal demand, with the exception of Orange County which saw lower demand than previous first quarters. Midwest markets, many that have experienced lower supply, generally saw the highest rent gro…