Apartments at all price levels nationwide are experiencing downward pressure on rents as nearly 1 million new units have been delivered since the beginning of 2023, surpassing the largest volumes seen in more than 50 years.

In submarkets in the nation’s 150 largest apartment markets with the largest inventory growth for the year ending third quarter 2024, median pricing premiums were the narrowest between asset classes, according to a RealPage analysis. In submarkets with less than 1% inventory growth for the year, Class A units had the largest median premium of 22% during the third quarter. Meanwhile, submarkets with more than 10% growth annually saw the smallest Class A premiums of under 15%, according to RealPage.

“In other words, it is 7% more expensive for a Class B renter in a low-supply submarket to move into a luxury Class A unit today compared to one in a high-supply submarket,” according to the analysis.

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