U.S. Marks Largest Volume of Apartment Supply in History

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“I'm not upset that you lied to me, I'm upset that from now on I can't believe you.”

― Friedrich Nietzsche

Immigration Boosts U.S. Population Growth link

• U.S. population growth saw a decline in the 2010s, attributed to millennials postponing marriage and childbirth, coupled with reduced immigration rates. The COVID-19 pandemic exacerbated these trends by increasing mortality rates.

• The tide turned in recent years with legal immigration climbing to over 1 million annually in 2022 and 2023, although population growth remains at just 38% of the 2010-2019 average. Without a rise in birth rates, full recovery of population growth is doubtful.

• Regional variations in population growth are evident across the U.S., with specific areas like California, Texas, and Florida benefiting from robust multifamily leasing due to immigration. These shifts also underpin resilient job growth and a surprisingly strong for-sale housing market in the U.S.

Housing Market Update: The Cost of Buying a Home Hits New Record As Mortgage Rates Jump, Prices Rise 5% link

• Mortgage rates have soared to their highest since last November, reaching 7.4% following recent inflation reports. This sharp increase is pressuring prospective home buyers as affordability becomes a significant challenge.

• The median U.S. home sale price has risen 5% year-over-year to nearly $380,250, closely approaching last year's peak. Buyers face a median monthly housing payment of $2,775, marking an 11% increase from the previous year, setting a new affordability low.

• Despite the high rates, there's a noticeable uptick in homebuying activities, with mortgage-purchase applications rising by 5% week-over-week. This suggests a resilient demand in the market, as some buyers hurry to purchase before potential further rate increases.

Apartment Occupancy Improves Notably in Small Georgia Town link

• Columbus, GA, experiences notable occupancy growth. Situated on the Chattahoochee River, Columbus, Georgia's second-largest city, boasts a small but growing apartment market with approximately 24,800 units. In March 2024, the occupancy rate rose to 95.4%, an increase of 0.9% from the previous year.

• Outpacing national trends in apartment occupancy. While the national occupancy rate decreased by 0.6% over the last year, reaching 94.1%, Columbus ranked second nationwide for occupancy growth, trailing only Stockton/Lodi, CA.

• Regional significance in the South for occupancy gains. Among the top 150 U.S. markets, Columbus and Corpus Christi, TX, are the only cities in the South to record an annual occupancy growth exceeding 0.5%.

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Record Apartment Deliveries in 1st Quarter link

• Historic high in U.S. apartment deliveries. The first quarter of 2024 marked a record-breaking period for the U.S. apartment market, with approximately 135,600 units completed, the largest volume of quarterly apartment supply ever recorded.

• Significant increase compared to previous decades. This recent surge nearly doubled the 10-year average of about 82,600 units per quarter and far exceeded the 2004-2014 average of roughly 36,200 units per quarter.

• Regional disparities in new apartment completions. The South led with over 79,200 units, marking the highest for the region, while the West saw about 29,200 units. The Midwest and Northeast experienced more moderate completions, highlighting a regional variance in new housing supply.

Nearly Half of Biden Voters Want to Live in a Place Where Weed Is Legal. Only 12% of Trump Voters Do link

• Voter preferences for recreational weed vary sharply by political alignment. Nearly 47% of likely Biden voters want to live where recreational weed is legal, compared to just 12.4% of Trump voters.

• Income and education levels influence attitudes towards living in weed-legal locations. Over one-third of respondents earning at least $100,000 annually and those with college degrees prefer locations where recreational weed is legal.

• Remote workers and younger generations are more open to weed legalization. 36% of remote workers and over half of the LGBTQ+ community, predominantly Gen Zers, prefer to reside in areas where recreational weed is legal.

Analysis: National Rent Report

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That's all, folks.

Cheers,

Vidit

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