October 7, 2021
Demand for apartments across the U.S. has never been higher, and the supply side is failing to keep up despite its best efforts.
Absorption of multifamily units jumped by more than 255,000 in the third quarter, according to data from property management and analytics platform RealPage. That represents the largest figure for a single quarter in records that reach back to the early 1990s and comes just as the annual demand volume of over 597,000 is miles past what has previously been recorded — more than 200,000 above its most recent peak in Q3 of 2018.
The demand volume curve has gone nearly vertical in the first three quarters of this year, reflecting an unleashed market that was all but frozen for most of 2020. A dip in rent prices, a little more money in the bank and a job market more favorable to applicants for the first time in a generation all combined to form an unprecedented rush — one that might have peaked in the third quarter, RealPage reports.
Multifamily developers have been working hard to respond to the current trends, with new construction permits totaling over 57,000 units issued across the U.S. in August, according to U.S. Census Bureau data reported by CoStar. That represents the hottest month for new permits since June of 2015.
Read the full BisNow article HERE.
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