West Coast Logged Tepid Apartment Demand in 2023

West Coast apartment markets accounted for one of the smallest pieces of the absorption pie in 2023. The West Coast absorbed nearly 13,000 units on net in calendar 2023, accounting for a little more than 5% of the nation’s total demand. That volume is even less impressive when noting that the West Coast region makes up nearly 20% of the nation’s existing apartment stock. Relative absorption compared to existing product works out to an indexed rate of 0.3. That was the nation’s second weakest reading ahead of only the (much smaller) Northeast. (It should also be noted that the Northeast data does rely heavily on the New York MSA, which can sway that region’s figures notably.) Regions where indexed absorption was the strongest included the Carolinas, the Mountains/Desert, Texas and Florida.

For more information on the state of apartment markets along the West Coast, including forecasts, watch the webcast Market Intelligence: Q1 West Coast Update.