The apartment absorption rate is at a 25-year high following a solid second quarter performance.
The National Association of Home Builders analyzed data from the Census Bureau’s Survey of Market Absorptions of New Multifamily Units to find the absorption rate increased 15 percentage points to 77% in Q2, which is the highest it’s been since the second quarter of 1997 when it was at 80%.
Apartment completions jumped 25,000 from the first quarter of 2022 to 77,110; however, completions are down more than 8% from one year ago.
Median asking rent increased to $1,745 in Q2 from $1,683 in Q2 2021—a 4% increase. This is also the sixth straight quarter with a year-over-year increase in asking rent.