Berkadia: 2024 Mid-Year Multifamily Report

“The U.S. economy continued to thrive as job creation accelerated in the first half of 2024. On average, 222,300 additional positions were added monthly to total nonfarm payrolls at a seasonally adjusted rate during the first half of 2024.

Apartment leasing amplified this year with approximately 257,100 net units absorbed across the U.S. in the first half of 2024. The six-month total already surpassed the 222,000 net units absorbed in all last year.

The increased deliveries facilitated robust apartment leasing. Nearly 283,700 market-rate units began lease-up in the first half of 2024. A large share was concentrated in the Sun Belt region of the country.

Leasing activity nearly kept pace with the inflow of apartment inventory as occupancy averaged 94.2% in the second quarter of 2024, the same rate at the close of 2023.

With healthy occupancy amid an influx of new inventory, effective rent increased 1.2% in the first half of the year. Tempering rent growth has been the rise of concessions to attract renters, as approximately one out of every five units offered some level of concessions in the second quarter of 2024.”