Market Trends

Long considered a highflyer in the multifamily industry, the Sun Belt region is now beset by high supply, low demand, and flat or declining asking rents. Here’s why recovery will be slow.

After an upward climb that began in 2022, the multifamily vacancy rate stayed stable in the second quarter of 2024. This is one of a few positive signs for the industry revealed in the latest data from CoStar.

These dozen major markets are outperforming the nation, with asking rents rising by twice or three times the national average in the second quarter of 2024. And bucking regional trends, it’s not just Midwest and Northeast markets that are topping the list this quarter.

The first quarter of 2024 saw renter demand increase, though not by enough to meet historically high supply, especially in the high-end quality class.

These 10 Sun Belt markets are struggling with the greatest year-over-year drops in asking rent in the country. This decline in the first quarter of 2024 is thanks to a mismatch between supply and demand.

Rent growth continues to decelerate on both a monthly and annual basis, with only one region of the country seeing a slight uptick compared to January.

Vacancy rates have been on the rise, pushed up by increasing supply and insufficient demand. Currently, 10 major markets lead the nation for above-average vacancy, based on the latest CoStar data for the first quarter of 2024.

The multifamily industry saw a slight uptick in rent growth in January 2024. The Midwest and Northeast have driven the greatest increases in asking rent, while the South continues to lag behind with declining rents.

After a year of record-high supply and declining rent growth, what can the multifamily industry expect to see this year? Here are the top market trends projected by CoStar for the sector in 2024.

The multifamily sector closed the year with a few positive signs amid tough market conditions. Despite the flood of excess supply, absorption ticked upwards in late 2023, rising by 122 percent.

The latest rent data from CoStar reveals a slowdown in rent growth across the nation, with a small number of local markets pulling ahead.

Where can you get the most rent per square foot? Check out the top markets for absolute rent relative to apartment size, according to the latest CoStar data.