Apartment Occupancy Falls With New Supply
New supply - especially in a handful of big markets such as New York and San Francisco - pushed down apartment occupancy rate from 95.1% in fall, 2016 to 94.5% in Q1, 2017.
Experts anticipate about 102,000 new units to come online quarterly for the rest of 2017 compared to 82,000 each quarter in 2016 and early 2017.
However, rental markets are expected to be on firmer footing later in the year owing to a stronger economy and new household formation.
Most new supply is concentrated in the middle-upper end of the spectrum making luxury and large apartment communities more sensitive to increased supply.
Despite the strong supply, overall multifamily markets remain strong as not all markets are witnessing such strong supply.
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