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U.S. apartment demand rose in Q2 as deliveries slowed

Cushman & Wakefield said net absorption reached 124,600 units, while deliveries totaled 88,000, helping push vacancy below 9% for the first time in two years.

Reported · Written up by our desk · Residential

HousingWire reports that U.S. apartment leasing strength held up in Q2, with renter demand outpacing a slowdown in new supply. Commercial real estate firm Cushman & Wakefield reported Q2 net absorption of 124,600 units, up 8% year over year, as deliveries fell to 88,000.

The report also linked tighter availability to improving occupancy metrics. Apartment vacancy nationally dropped below 9% for the first time in two years, and rent growth ticked up to 1.5% year over year.

Cushman & Wakefield attributed the weaker delivery pace to higher borrowing costs and construction expenses that dampened development. Only 88,000 new apartments were finished in the quarter, the slowest Q2 since 2022, down 27% from a year earlier, and just 3.5% of the existing apartment stock is currently under construction.

HousingWire adds that the pace of rent acceleration remained modest but improved. Rents rose 1.5% year over year, compared with 1.1% the previous quarter, with the report noting occupancy is recovering while pricing power remains slower to catch up.

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