Apartment Supply to Thin Out Dramatically After This Year

In a confirmation of the laws of supply and demand, rents dropped last year in markets where supply increased—even though demand was also up thanks to consumer confidence. “This was especially true in the Sun Belt and Mountains, which together accounted for 70% of national apartment demand and where 62% of the new apartments were built,” this article notes. Phoenix saw rents plunge four to six percent in 2023 and was also expected to add more housing units in 2023 than any other metro area. But the supply is expected to shrivel up after 2024, which would send prices up again. This underscores the need for more building, not less.

Source: https://www.orionprop.com/topfive/apartment-supply-to-thin-out-dramatically-after-this-year/