Apartment Demand Still Exceeds Supply

Willett: “The limited churn of residents is helping keep the occupied apartment count high.”

RICHARDSON, TX—Even as MPF Research reported earlier this month that apartment growth has moderated in recent months to more sustainable levels, the market intelligence division of RealPage Inc. said Friday that occupancies nationwide have reached a 16-year high. The third-quarter occupancy rate of 96.5% is just 30 basis points short of the all-time record of 96.8%, set during the tech boom of 2000.

“Many properties, especially communities at the middle-tier price point, are completely full,” says Greg Willett, chief economist with RealPage. “While an upturn in high-end deliveries is yielding more product availability in select spots, most new projects are moving quickly through the initial lease-up process.” Willett is scheduled to appear as one of a panel of experts during “The X Factor: Fundamentals of Economic Drivers,” which opens day two of the two-day RealShare Apartments conference scheduled for Oct. 19 and 20 in Los Angeles.