Redfin Reports Newly Built Apartments Are Starting to Fill Up Faster, But At a Slower Pace Than Last Year
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®.
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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