124,600 apartments were absorbed in Q2, lifting trailing four-quarter demand to about 362,000 units versus roughly 358,000 delivered—the first time demand has exceeded new supply since early 2022.
Vacancy fell 35 basis points from the prior quarter to 8.9%, dropping below 9% for the first time since 2024 as resilient leasing met a thinning construction pipeline.
88,000 units were delivered nationally in the quarter, down 27% from a year earlier and more than 40% below the mid-2024 peak, with elevated financing and construction costs curbing new development.
475,000 units are now under construction—3.5% of inventory, the lowest share since 2013—while deliveries are expected to keep declining through 2027, supporting further occupancy gains.
New York led first-half demand with 19,500 units absorbed, ahead of Dallas-Fort Worth at 18,600 and Phoenix at 17,000, while national asking rents rose 1.5% year over year and San Francisco led rent growth at 13%.