RealPage Reports Nation's Lowest Quarterly Rental Vacancy Rate Since 2000

The National Multifamily Housing Council reported this week that the apartment market continues to experience record levels of demand. The demand, coupled with delayed construction timelines and limited supply, is resulting in historic levels of occupancy and rent growth.

Vacancy Rate Measures Were Mixed
RealPage’s national vacancy rate for investment-grade apartments fell 20 bps in the first quarter of 2022—and 2.1 percentage points from the first quarter of 2021—to 2.4 percent. This marks the lowest quarterly vacancy rate since RealPage began recording in 2000. All regions, except for the West, experienced a decrease of 20 bps in vacancy rates, while vacancy rates in the West remained unchanged at 2.3 percent.

The U.S. Census Bureau’s rental vacancy rate for all apartments (in buildings with five or more units) rose 60 bps in the first quarter of 2022 to 7.0 percent, down 1.3 percentage points from the prior year.

Summary:

• Construction Starts: Up
• Permits: Falling
• Completions: Falling
• Absorptions: Climbing
• Rent Growth: Strong
• Transaction Volumes: Moderated