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Sun Belt multifamily rents start rising as oversupply retreats unevenly
Rents rose 30.0% from 2021 to 2024 and new inventory expanded by 673,000 units, per Yardi Matrix.
Commercial Observer reports that Sun Belt multifamily markets are moving back toward more normal conditions at different speeds as the retreat from regional oversupply continues unevenly after nearly a decade of construction-driven growth.
The outlet points to renter migration to warmer climates and cheap financing during the pandemic as factors behind apartment development, noting that rents increased 30.0% from 2021 to 2024 while new inventory grew by 673,000 units, according to data firm Yardi Matrix.
Commercial Observer says the industry consensus once projected the glut would be absorbed within two years, but that has not played out uniformly across high-supply markets.
The outlet adds that Yardi originally expected positive rent growth to return in high-supply areas by the end of 2026, but revised its outlook by late 2025, stating in a report that the timeline for rent recovery would be later.