Major Apartment Markets Show Occupancy Improvement in 2024

Year-end 2024 data suggests that many markets are beginning to see occupancy improve from their local low point. Among the nation's 50 largest metro areas, 25 saw occupancy increases between 30 basis points (bps) and up to 100 bps in 2024, according to data from RealPage Market Analytics. Those markets were generally within reach of the national average improvement (60 bps in 2024). Outside of those 25 metro areas with moderate improvement were a few distinct groups of markets. Half a dozen markets saw occupancy improve only slightly up to 20 bps versus the prior year. Those six markets were exclusively coastal areas (including New York, Boston and Orange County). Elsewhere, there were 15 markets where occupancy improved by at least 100 bps in 2024. Most noteworthy was the 200-bps occupancy increase in Las Vegas. Among those most-improved markets were Greensboro, Indianapolis and Jacksonville, all of which saw at least 150 bps occupancy improvement. Though the pace of rent growth continued to decelerate in some high supply markets such as Austin, Dallas, Phoenix and Raleigh/Durham, improvement in occupancy ranged between 30 bps and 100 bps for those areas. While rent growth may remain sluggish in those markets during 2025, the improved occupancy rate suggests these markets may be turning a corner. Finally, just four of the nation's key apartment markets saw occupancy backtrack in calendar 2024. Those markets were Fort Worth, Memphis, Milwaukee and Minneapolis. Still, even those markets saw very limited occupancy contraction with no market losing more than 20 bps in the past 12 months.