Redfin Reports Newly Built Apartments Are Starting to Fill Up Faster, But At a Slower Pace Than Last Year
Redfin reports that 54% of newly constructed apartments completed in Q1 2024 were rented within three months, up from 47% in the previous quarter but down from 58% a year earlier. This uptick may indicate building owners are attracting renters with more affordable rents and concessions. The slower absorption rate compared to previous years is attributed to increased apartment construction, especially in Sun Belt metros. Studio apartments filled up faster at 58%, while one-bedroom and two-bedroom units saw a 53% absorption rate. The national rental vacancy rate for buildings with five or more units increased to 7.8% in Q2, up from 7.4% a year earlier, suggesting supply slightly outpaces demand.
Redfin riporta che il 54% degli appartamenti di nuova costruzione completati nel primo trimestre del 2024 sono stati affittati entro tre mesi, in aumento rispetto al 47% del trimestre precedente, ma in calo rispetto al 58% di un anno fa. Questo aumento potrebbe indicare che i proprietari degli edifici stanno attirando gli inquilini con affitti più accessibili e concessioni. Il tasso di assorbimento più lento rispetto agli anni precedenti è attribuito all'aumento della costruzione di appartamenti, specialmente nelle aree metropolitane del Sun Belt. Gli appartamenti con monolocale si sono riempiti più rapidamente, con un tasso del 58%, mentre le unità con una camera da letto e due camere da letto hanno visto un tasso di assorbimento del 53%. Il tasso nazionale di occupazione degli affitti per edifici con cinque o più unità è aumentato a 7,8% nel secondo trimestre, rispetto al 7,4% di un anno fa, suggerendo che l'offerta supera leggermente la domanda.
Redfin informa que el 54% de los apartamentos de nueva construcción finalizados en el primer trimestre de 2024 fueron alquilados en un plazo de tres meses, un aumento desde el 47% en el trimestre anterior, pero una disminución con respecto al 58% del año anterior. Este aumento puede indicar que los propietarios de edificios están atrayendo inquilinos con alquileres más asequibles y concesiones. La tasa de absorción más lenta en comparación con años anteriores se atribuye al aumento en la construcción de apartamentos, especialmente en las áreas metropolitanas del Sun Belt. Los estudios se llenaron más rápido, con un 58%, mientras que las unidades de una y dos habitaciones vieron una tasa de absorción del 53%. La tasa nacional de vacantes de alquiler para edificios con cinco o más unidades aumentó al 7.8% en el segundo trimestre, en comparación con el 7.4% del año anterior, lo que sugiere que la oferta supera ligeramente la demanda.
레드핀에 따르면 2024년 1분기에 완료된 신축 아파트의 54%가 3개월 이내에 임대되었습니다. 이는 이전 분기의 47%에서 증가했지만, 1년 전의 58%에서 감소한 수치입니다. 이러한 증가세는 건물 소유주들이 더 저렴한 임대료와 혜택으로 세입자를 유치하고 있다는 것을 나타낼 수 있습니다. 이전 해에 비해 더 뚜렷한 흡수율 감소는 특히 선벨트 지역의 아파트 건설 증가로 설명됩니다. 스튜디오 아파트는 58%로 더 빠르게 임대되었고, 원룸 및 투룸 유닛은 53%의 흡수율을 보였습니다. 5개 이상의 유닛을 가진 건물의 전국 임대 공실률은 2분기 7.8%로 증가하여, 작년의 7.4%에서 상승하였으며, 이는 공급이 수요를 약간 초과하고 있음을 시사합니다.
Redfin rapporte que 54% des appartements neufs achevés au premier trimestre 2024 ont été loués dans les trois mois, en hausse par rapport à 47% au trimestre précédent, mais en baisse par rapport à 58% il y a un an. Ce regain d'intérêt pourrait indiquer que les propriétaires attirent les locataires avec des loyers plus abordables et des concessions. Le taux d'absorption plus lent par rapport aux années précédentes est attribué à l'augmentation de la construction d'appartements, en particulier dans les métropoles du Sun Belt. Les appartements studios se sont remplis plus rapidement à 58%, tandis que les appartements d'une chambre et de deux chambres ont affiché un taux d'absorption de 53%. Le taux national de vacance locative pour les bâtiments de cinq unités ou plus a augmenté à 7,8% au deuxième trimestre, contre 7,4% un an auparavant, ce qui suggère que l'offre dépasse légèrement la demande.
Redfin berichtet, dass 54% der neu gebauten Wohnungen, die im 1. Quartal 2024 fertiggestellt wurden, innerhalb von drei Monaten vermietet wurden. Dies ist ein Anstieg von 47% im vorherigen Quartal, aber ein Rückgang von 58% im Vorjahr. Dieser Anstieg könnte darauf hindeuten, dass die Gebäudeinhaber Mieter mit bezahlbareren Mieten und Vergünstigungen anlocken. Die langsamere Absorptionsrate im Vergleich zu den Vorjahren wird auf den Anstieg der Wohnungsbauaktivitäten zurückgeführt, insbesondere in Metropolen des Sun Belt. Studio-Wohnungen wurden schneller vermietet, mit 58%, während Einzimmer- und Zweizimmerwohnungen eine Absorptionsrate von 53% verzeichneten. Die nationale Leerstandquote für Mietwohnungen mit fünf oder mehr Einheiten stieg im 2. Quartal auf 7,8%, gegenüber 7,4% im Vorjahr, was darauf hindeutet, dass das Angebot die Nachfrage leicht übersteigt.
- Absorption rate for new apartments increased to 54% in Q1 2024, up from 47% in the previous quarter
- Studio apartments saw improved absorption rates, with 58% rented out within three months compared to 42% a year earlier
- Increased supply of new apartments may give renters more choices and negotiating power
- Overall absorption rate of 54% is still down from 58% a year earlier
- Absorption rates for one-bedroom and two-bedroom apartments decreased from 58% to 53% year-over-year
- Three-plus-bedroom apartments saw a significant slowdown, with absorption rate dropping from 65% to 53% year-over-year
- National rental vacancy rate increased to 7.8% in Q2, up from 7.4% a year earlier, indicating supply outpacing demand
Insights
The uptick in absorption rates for newly constructed apartments signals a potential stabilization in the rental market, albeit at a slower pace than last year. The 54% absorption rate within three months, up from 47% last quarter, indicates improved demand, but it's still below the 58% rate from a year ago. This trend suggests that while the market is recovering, it hasn't fully rebounded to previous levels.
The increased supply of new apartments, especially in Sun Belt metros, is creating a more competitive environment for landlords. This oversupply is evident in the rising vacancy rate of 7.8% for buildings with five or more units. For investors, this market dynamic presents both opportunities and challenges:
- Potential for better yields through negotiated rents and concessions
- Longer lease-up periods may impact short-term cash flows
- Increased competition could lead to downward pressure on rental prices
The varying absorption rates across different apartment types, with studios performing better due to reduced inventory, highlight the importance of strategic unit mix in new developments. Investors should closely monitor these trends to optimize their portfolios and adjust their strategies in this evolving rental landscape.
The current rental market dynamics present a nuanced picture for real estate investors. The slight improvement in absorption rates from the previous quarter suggests a potential bottoming out of the market, but the year-over-year decline indicates persistent challenges. This environment offers several key considerations:
- Opportunity for value-add strategies: With slower absorption rates, there's potential to acquire underperforming properties at attractive prices and implement improvements to boost occupancy.
- Shift in development focus: The stronger performance of studio apartments (58% absorption rate) compared to larger units suggests a potential pivot in development strategies towards smaller, more affordable units.
- Geographical considerations: The report's mention of Sun Belt metros experiencing increased supply underscores the importance of market-specific analysis in investment decisions.
For
That’s still the second-lowest seasonally adjusted share recorded in a quarter since mid-2020 and down from
The uptick from the previous quarter—which saw the slowest absorption rate of any quarter since the start of 2020—may be a sign that building owners are attracting renters with more affordable rents and concessions.
The absorption rate for new apartments has been slower this year than the previous two years because of a spike in new apartment buildings being built—especially in Sun Belt metros that became popular destinations during the pandemic.
“With only around half of new apartments renting out within three months, not only do renters have more choices, they also likely have the ability to negotiate a better deal,” said Redfin Senior Economist Sheharyar Bokhari. “There’s a huge number of new apartments opening up, and building owners are competing with one another to fill them up quickly.”
Nationally, the rental vacancy rate for buildings with five or more units was
Studio apartments filling up faster as completions fall
With less inventory available, studios filled up slightly faster than other bedroom types, with
In comparison,
Percentage of New Apartments Rented Within 3 Months
|
Q1 2024 |
Q1 2023 |
2023 → 2024 |
Studio |
|
|
+16 ppts |
One-Bedroom |
|
|
-5 ppts |
Two-Bedrooms |
|
|
-5 ppts |
Three-Plus-Bedrooms |
|
|
-12 ppts |
New three-plus-bedroom apartments—the rarest bedroom type—saw the biggest slowdown from a year earlier, with
Redfin’s report is based on an analysis of the
To view the full report, please visit: https://www.redfin.com/news/new-rentals-absorption-Q2
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, title insurance, and renovations 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. Customers selling a home can have our renovations crew fix it up to sell for top dollar. 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/20241001783095/en/
Contact Redfin
Redfin Journalist Services:
Kenneth Applewhaite
press@redfin.com
Source: Redfin
FAQ
What percentage of newly constructed apartments were rented within three months in Q1 2024 according to Redfin (RDFN)?
How does the Q1 2024 absorption rate for new apartments compare to the previous quarter and year for Redfin (RDFN)?
What was the rental vacancy rate for buildings with five or more units in Q2 2024 according to Redfin's (RDFN) report?
Which type of apartments had the highest absorption rate in Q1 2024 based on Redfin's (RDFN) data?
