Slowing Apartment Development in Southeast Markets May Help Occupancy

While apartment occupancy across the Southeast has been challenged by elevated construction for several years, a recent slowdown in development activity might help boost market fundamentals across the region. The Southeast – which includes major markets like Atlanta, Nashville and Memphis, as well as smaller markets Louisville and New Orleans – recorded its lowest occupancy level in 10 years as of 1st quarter 2024, at 93.1%. This low rate was the result of developers delivering more new apartment supply than the Southeast markets could absorb. And while that boom is not over yet, construction levels are starting to taper. New apartment development has fallen by almost 20% in the past 12 months alone. All of the region’s key markets are seeing supply moderate, and that should alleviate some of the pressure on occupancy rates.

For more information on the state of apartment market across the Southeast region, including forecasts, watch the webcast Market Intelligence: Q2 Southeast Update.