Over the past year, major apartment markets across the United States have generally seen modest occupancy improvements. However, several markets have experienced especially notable upturns, driven largely by affordability and regional economic trends. The most significant occupancy gains occurred predominantly in Southern and Midwestern cities, with two exceptions — Pittsburgh and Phoenix — standing out for their strong performance.
According to RealPage Market Analytics data for the year ending August, these markets share a common trait: relatively affordable rents below the national average, making them attractive options for renters amid evolving housing demands.
Among the nation’s 50 largest apartment markets, Memphis emerged as the clear leader in occupancy growth, posting a 260 basis point (bps) increase over the past year. The metro also boasts some of the nation’s most affordable rents, with an average monthly asking price of $1,242, as of August. This affordability has been a key driver in the city’s ability to attract and retain tenants despite broader economic pressures, suggesting significant demand from cost-burdened renters relocating to lower-cost metros compared to the national average rent of $1,882.
St. Louis closely followed Memphis with a 240-bps occupancy increase, while Atlanta and Greensboro also recorded gains exceeding 200 bps. Both St. Louis and Greensboro maintain rents well under $1,400, reinforcing the trend that strong occupancy recoveries correlate more with affordability rather than deep rent discounting. Neither city is at the bottom of the rent spectrum, but both remain strongly below the U.S. average, underscoring steady demand for reasonably priced housing.
Atlanta is noteworthy for its robust occupancy progress (230 bps) alongside higher asking rents ($1,606) — the highest among the group, except for Pittsburgh and Cincinnati. This may indicate that certain affordable submarkets or asset classes within Atlanta are driving the increased demand, rather than the market overall becoming broadly more affordable.
Markets like Greensboro and Indianapolis post similar occupancy rates and moderate rents ($1,259 and $1,332, respectively). However, Indianapolis’ gains cover a larger rental inventory, suggesting demand extends beyond Sunbelt markets to diverse Midwest urban centers.
Cincinnati now boasts the strongest occupancy rate among the group at 96.5%, with rents of $1,513 — still below the national average but the highest among Midwestern markets on this list. This hints that Cincinnati’s affordability advantage may be narrowing, which could slow future momentum as rising rents start to erode its competitive pricing edge.
Raleigh/Durham stands out with a solid occupancy jump and mid-tier rents ($1,494), reflecting strong demand tied to its tech sector and university presence, even as regional cost pressures increase.
Pittsburgh presents an exception to the affordability-driven trend, combining a high occupancy rate (96.3%) with the highest rent level in the group ($1,658). Its strong market performance likely reflects localized job growth in sectors such as technology, healthcare and education, which offset higher rental costs.
Phoenix, meanwhile, shows the weakest occupancy among these markets at 92.9% despite a 190-bps improvement. This suggests lingering effects of previous overbuilding or population out-migration due to cost pressures, though rents remain in the mid-to-upper range relative to its peers.
San Antonio, despite posting a 190-bps gain similar to Phoenix and Cincinnati, remains the market with both the lowest rents ($1,192) — but the weakest occupancy among large markets at 92.9%. This highlights that affordability alone cannot guarantee strong market fundamentals, particularly if new supply is being absorbed slowly or if population growth slows.
Across the board, all markets with notable occupancy gains have effective asking rents well below the national average of $1,882. This confirms that most strong leasing momentum occurs where rents remain comfortably below peak cost-burden thresholds for renters.
No market with the top occupancy progress commands average or above-average national rents, with Pittsburgh as a notable exception — likely due to unique local factors rather than broad affordability.
Occupancy gains above the national average of 130 bps consistently align with lower rent environments. However, exceptions like Pittsburgh and Atlanta indicate that other drivers, such as demographic shifts, job market resilience or demand from the university and healthcare sectors, can also fuel occupancy gains.
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