Big Markets with Modest Apartment Supply Volumes

In a time dominated by record-breaking supply volumes across the U.S., a handful of major apartment markets have gone against the grain, adding less than 10,000 new units in the past five years. Among the nation’s largest 50 markets, Memphis has added the fewest new apartments since 2018, gaining just 4,600 or so units, increasing the existing base by 4.4%, according to 3rd quarter data from RealPage Market Analytics. Adding roughly 5,000 to 6,000 new apartments in the past five years were Pittsburgh, Cleveland and Virginia Beach. Greensboro and Riverside saw the completion of roughly 8,000 units in the past five years. Two other California markets made this list of low supply markets. Sacramento logged additions of just over 8,600 units, while San Franciso completions totaled nearly 9,700 units. Rounding the list out were two Midwest markets: Cincinnati and Detroit both gained about 8,600 new apartments in the past five years. It’s not a surprise to see some apartment markets on this list. Detroit, Pittsburgh and Cleveland saw their employment counts decline notably in the past five years, when the norm nationwide was job growth. Occupancy declines since 2018 have been significant in Memphis, Greensboro, Detroit, Sacramento and Riverside. But when it comes to rents, which are forging a relationship with supply volumes, all the metros on this list – with the exception of the California markets – are logging price growth at or above national norms.