2023 Apartment Market By the Numbers

Supply and demand constituted the primary storylines of 2023’s multifamily industry. The final quarter of 2023 marked a considerable rebound in apartment demand – but that still wasn’t strong enough to keep pace with massive amounts of new supply.

Some 129,015 units delivered across the top 150 markets tracked by RealPage Market Analytics in 2023’s 4th quarter. That pushed total deliveries in 2023 to 439,394 units. The onslaught of supply proved too much for the rebound in absorption despite demand for some 58,200 units in 4th quarter and 233,741 units in the 12-month period, a huge change from net move-outs from 123,290 units recorded in 2022. 

As supply outpaced demand, occupancy contracted 30 points in the quarter and 90 points year-over-year. No surprise, the supply/demand imbalance also impacted operators’ pricing power.

In 4th quarter, rents contracted 1.3% but eked out a slight 0.2% increase in the year. With increased vacancies and tumbling rents, revenue across the top 150 markets also fell 1.6% in 4th quarter and 0.8% year-over-year. All in all, 2023 proved to be a transition year as demand rebounded, supply climbed, occupancy contracted, and rents and revenue dipped. 

In 2024, about 672,000 units are forecasted to deliver across the U.S., marking about a 53% increase from 2023’s record high supply.