Redfin Reports New Apartments Are Filling Up at Nearly the Slowest Pace on Record, But That May Change as Builders Pull Back
Redfin (NASDAQ: RDFN) reports that only 47% of newly constructed apartments in Q3 2024 were leased within three months of completion, matching Q4 2023 as the lowest absorption rate since records began in 2012, excluding the pandemic period.
This slow absorption rate coincides with a record-high completion of 142,900 new apartments in Q3. The rental market is experiencing high vacancy rates, reaching 8.2% at the end of 2024, the highest since early 2021. The median U.S. asking rent stands at $1,607, showing a modest 0.4% year-over-year increase but remaining approximately $100 below its peak.
While studio apartments showed improved absorption rates (50% vs 42% year-over-year), larger units experienced declining rates. However, this trend may shift as construction permits for new apartments have decreased by nearly 10% year-over-year, potentially leading to reduced supply and increased rents in the future.
Redfin (NASDAQ: RDFN) riporta che solo il 47% degli appartamenti di nuova costruzione nel terzo trimestre del 2024 sono stati affittati entro tre mesi dalla conclusione, eguagliando il quarto trimestre del 2023 come il tasso di assorbimento più basso da quando sono iniziate le registrazioni nel 2012, escluse le fasi pandemiche.
Questo lento tasso di assorbimento coincide con un numero record di 142.900 nuovi appartamenti completati nel terzo trimestre. Il mercato degli affitti sta affrontando tassi di vacanza elevati, raggiungendo un 8,2% alla fine del 2024, il più alto dal inizio del 2021. L'affitto medio negli Stati Uniti si attesta a $1.607, mostrando un modesto aumento dello 0,4% rispetto all'anno precedente, ma rimanendo circa $100 al di sotto del suo picco.
Sebbene gli appartamenti monolocali abbiano mostrato tassi di assorbimento migliorati (50% rispetto al 42% rispetto all'anno precedente), le unità più grandi hanno registrato tassi in calo. Tuttavia, questa tendenza potrebbe cambiare poiché i permessi di costruzione per nuovi appartamenti sono diminuiti di quasi il 10% rispetto all'anno precedente, potenzialmente portando a una riduzione dell'offerta e a un aumento degli affitti in futuro.
Redfin (NASDAQ: RDFN) informa que solo el 47% de los apartamentos de nueva construcción en el tercer trimestre de 2024 fueron alquilados dentro de los tres meses posteriores a su finalización, igualando el cuarto trimestre de 2023 como la tasa de absorción más baja desde que comenzaron los registros en 2012, excluyendo el período de pandemia.
Esta lenta tasa de absorción coincide con un número récord de 142,900 nuevos apartamentos completados en el tercer trimestre. El mercado de alquileres está experimentando tasas de vacantes altas, alcanzando un 8.2% a finales de 2024, el más alto desde principios de 2021. El alquiler medio en EE. UU. se sitúa en $1,607, mostrando un modesto aumento del 0.4% interanual, pero permaneciendo aproximadamente $100 por debajo de su pico.
Aunque los apartamentos tipo estudio mostraron tasas de absorción mejoradas (50% frente al 42% interanual), las unidades más grandes experimentaron tasas en declive. Sin embargo, esta tendencia podría cambiar, ya que los permisos de construcción para nuevos apartamentos han disminuido en casi un 10% interanual, lo que podría llevar a una reducción de la oferta y un aumento de los alquileres en el futuro.
레드핀 (NASDAQ: RDFN)은 2024년 3분기 새로 건설된 아파트의 47%만이 완공 후 3개월 이내에 임대되었다고 보고하며, 이는 2012년 기록이 시작된 이후 팬데믹 기간을 제외하고 가장 낮은 흡수율인 2023년 4분기와 일치합니다.
이 느린 흡수율은 3분기에 142,900개의 새로운 아파트가 완공된 기록과 일치합니다. 임대 시장은 높은 공실률을 경험하고 있으며, 2024년 말에는 8.2%에 달해 2021년 초 이후 가장 높은 수치입니다. 미국의 중위 임대료는 $1,607로, 전년 대비 0.4%의 소폭 증가를 보이고 있지만 여전히 최고치보다 약 $100 낮습니다.
스튜디오 아파트는 흡수율이 개선된 반면 (50% 대 42% 전년 대비), 더 큰 유닛은 감소하는 추세를 보였습니다. 그러나 새로운 아파트에 대한 건축 허가가 전년 대비 거의 10% 감소함에 따라 이러한 추세는 변화할 수 있으며, 이는 공급 감소와 향후 임대료 상승으로 이어질 수 있습니다.
Redfin (NASDAQ: RDFN) rapporte que seulement 47% des appartements nouvellement construits au troisième trimestre 2024 ont été loués dans les trois mois suivant leur achèvement, égalant ainsi le quatrième trimestre 2023 comme le taux d'absorption le plus bas depuis le début des enregistrements en 2012, à l'exclusion de la période pandémique.
Ce faible taux d'absorption coïncide avec un nombre record de 142 900 nouveaux appartements achevés au troisième trimestre. Le marché locatif connaît des taux de vacance élevés, atteignant 8,2% à la fin de 2024, le plus haut depuis début 2021. Le loyer médian aux États-Unis est de $1 607, affichant une légère augmentation de 0,4% par rapport à l'année précédente, mais restant environ $100 en dessous de son pic.
Bien que les appartements studios aient montré des taux d'absorption améliorés (50% contre 42% d'une année sur l'autre), les unités plus grandes ont connu des taux en baisse. Cependant, cette tendance pourrait changer, car les permis de construire pour de nouveaux appartements ont diminué de près de 10% d'une année sur l'autre, ce qui pourrait entraîner une réduction de l'offre et une augmentation des loyers à l'avenir.
Redfin (NASDAQ: RDFN) berichtet, dass nur 47% der neu errichteten Wohnungen im 3. Quartal 2024 innerhalb von drei Monaten nach Fertigstellung vermietet wurden, was dem 4. Quartal 2023 entspricht und die niedrigste Absorptionsrate seit Beginn der Aufzeichnungen im Jahr 2012 darstellt, ausgenommen die Pandemiezeit.
Diese langsame Absorptionsrate fällt mit einer Rekordzahl von 142.900 neuen Wohnungen im 3. Quartal zusammen. Der Mietmarkt hat hohe Leerstandsquoten, die Ende 2024 8,2% erreichen, die höchste seit Anfang 2021. Die mittlere Miete in den USA liegt bei $1.607, was einen moderaten Anstieg von 0,4% im Jahresvergleich zeigt, aber immer noch etwa $100 unter dem Höchststand liegt.
Während die Absorptionsraten für Studio-Apartments verbessert wurden (50% gegenüber 42% im Jahresvergleich), haben größere Einheiten rückläufige Raten erlebt. Diese Tendenz könnte sich jedoch ändern, da die Baugenehmigungen für neue Wohnungen im Jahresvergleich um fast 10% gesunken sind, was potenziell zu einem Rückgang des Angebots und steigenden Mieten in der Zukunft führen könnte.
- Studio apartment absorption rate improved to 50% from 42% year-over-year
- 10% decrease in new apartment construction permits may lead to reduced supply
- 47% absorption rate ties for lowest on record outside pandemic
- Record-high 142,900 new apartments creating oversupply
- Rental vacancy rate at highest level (8.2%) since early 2021
- Declining absorption rates for 1-3+ bedroom apartments
Insights
This report presents a significant data point for real estate market observers. With only 47% of newly-built apartments leased within three months of completion in Q3 2024, we're seeing absorption rates matching the lowest levels on record outside pandemic times. This weak absorption comes amid record-high apartment completions of 142,900 units in Q3.
This isn't particularly surprising given the unprecedented multi-family construction pipeline that followed the pandemic rental boom. With vacancy rates for buildings with 5+ units now at 8.2% (highest since early 2021), we're witnessing the market's struggle to digest this supply influx.
However, the forward-looking indicators tell a different story: apartment construction permits have declined nearly 10% year-over-year. This suggests the coming supply-demand rebalancing could eventually support rental rates, though likely not until late 2025 given the existing construction pipeline.
For Redfin specifically, this represents a mixed signal. As a technology-powered brokerage, Redfin's revenue isn't directly tied to rental rates, but general real estate market health impacts transaction volumes across both rental and sales segments. The current oversupply could pressure property values in markets with heavy multi-family concentration, though the construction pullback provides a counterbalance for longer-term market stability.
Most notable is the differential performance by unit type, with studios showing improved absorption (50% vs. 42% year-ago) while larger units declined - indicating potential shifts in renter preferences that could influence future development patterns.
Just
This is according to a Redfin analysis of the
Apartments are filling up slowly because renters have a lot of options to choose from; there were 142,900 new apartments completed in the third quarter—the highest number on record.
“Some landlords are slashing prices and offering concessions like free parking to woo tenants, but renters should know that these perks could start to dry up,” said Redfin Senior Economist Sheharyar Bokhari. “Builders are slowing their roll, with permits to construct apartments down almost
During the pandemic moving frenzy, apartments were filling up at record speed due to soaring demand, which drove up rents. To help meet that demand, builders ramped up construction, which led to more vacancies and lower rents. The rental vacancy rate for buildings with five or more units ended 2024 at
Studio apartments are filling up faster than last year
The absorption rate for apartments completed in the third quarter was roughly the same across bedroom types: around
Half (
|
Apartments completed in Q3 2024 |
YoY change in apartments completed |
Absorption rate for apartments completed in Q3 2024 |
YoY change in absorption rate |
Median asking rent of new apartments (Q4 2024) |
YoY change in median asking rent for new apartments |
Studio |
7,739 |
|
|
8 ppts |
|
- |
1 bedroom |
69,440 |
|
|
-5 ppts |
|
- |
2 bedrooms |
57,770 |
|
|
-1 ppt |
|
|
3+ bedrooms |
8,666 |
|
|
-5 ppts |
|
- |
Please note that absorption rate data by bedroom type is not seasonally adjusted.
To view the full report, including charts, please visit:
https://www.redfin.com/news/apartments-rented-near-slowest-rate-on-record
About Redfin
Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, and title insurance services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than
Redfin’s subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®.
For more information or to contact a local Redfin real estate agent, visit www.redfin.com. To learn about housing market trends and download data, visit the Redfin Data Center. To be added to Redfin's press release distribution list, email press@redfin.com. To view Redfin's press center, click here.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250307382627/en/
Contact Redfin
Redfin Journalist Services:
Kenneth Applewhaite
press@redfin.com
Source: Redfin
FAQ
What is the current apartment absorption rate according to Redfin (RDFN)?
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What is the current median asking rent in the US based on Redfin's report?
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How are studio apartment absorption rates performing compared to larger units in RDFN's report?
