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.