Southeast Region Apartment Supply Volumes Could be Near a Peak

The Southeast region has been a key spot for investors recently, with annual supply volumes more than doubling over the past five years. However, the region could be approaching a peak for apartment completions. Annual deliveries in the Southeast went from around 20,000 units in the years leading up to the pandemic, to around 50,000 units in the year-ending 2nd quarter 2024. Another 50,000 or so units are scheduled to deliver in the Southeast over the next 12 months, but roughly 10% of that will likely experience a delay, as suggested by historical delivery patterns. With interest rates still elevated, fewer projects have been breaking ground. As a result, new construction activity has been declining for the past few quarters and is set to continue its downward trend in the near term.

For more information on the state of apartment markets in the Southeast region, including forecasts, watch the webcast Market Intelligence: Q3 Southeast Update.