U.S. Quarterly Apartment Supply Past its Peak and Falling Fast

The U.S. apartment market continued its supply streak in 1st quarter 2025, hitting eight quarters of record completions. However, it’s clear the tide has turned, as the pullback from the final few months of 2024 was considerable.

Quarterly completion volumes broke past the 100,000-unit mark in 2nd quarter 2023 for the first time since RealPage Market Analytics began tracking the U.S. apartment market in the 1990s. Delivery totals then increased for five straight quarters, peaking in 3rd quarter 2024 before ebbing slightly in the last three months of 2024. The drop in 1st quarter 2025, though, was more demonstrative.

The U.S. completed nearly 116,100 units in the first three months of 2025. That was well behind 3rd quarter 2024 (159,000 units) and 4th quarter 2024 (153,000 units), but still a bit ahead of the 100,000-unit mark record.

After two consecutive quarters of falling completion volumes, it’s clear the U.S. is past its historic peak.

Every region of the U.S. saw supply volumes fall in 1st quarter, coming down from recent peaks. New apartment deliveries continued to be most prolific in the South region of the U.S., as nearly 64,700 units wrapped up there in early 2025. The South also saw the most notable pullback, delivering roughly 22,700 units less in the first three months of 2025 than in the last three months of 2024 and even fewer than the peak achieved in 3rd quarter 2024.

The West saw nearly 28,200 units delivered in 1st quarter, which was about 7,600 units fewer than came online in the region in 4th quarter. This region also peaked in 3rd quarter 2024, and recent totals are well behind that mark.

More mild deliveries were seen in the Midwest (12,300 units) and Northeast (11,000 units) in 1st quarter 2025. Those completion totals were both down by about 3,000 units from last quarter, which was the peak for the Northeast. Quarterly supply in the Midwest peaked a year before the other regions, hitting nearly 18,900 units in late 2023.

Markets seeing the most new deliveries in 1st quarter were Dallas, Phoenix and Austin. These markets each saw completions total north of 5,000 units in the first three months of the year, resulting in nation-leading annual delivery volumes topping 27,000 units. In each of these markets, however, the volume of product delivered in 1st quarter has diminished from recent peaks.