Declining participation among younger workers is dampening apartment absorption.

First-quarter data shows the smallest annual vacancy increase since early 2023.

Energy-driven inflation and softer growth cloud near-term performance.

Markets with lower housing burdens are gaining an edge in attracting graduates.

There is a pause in worsening affordability, yet high prices continue to limit renter transitions into ownership.

Strong occupancy and limited construction are driving competition higher in select regions.

Pricing reset is largely complete, with limited room for compression despite sector strength.

Expirations are ahead (1.7 billion SF), driving a flight to modern facilities and renewed pricing pressure on older assets.