The Rise and Fall of the Sun Belt's Rental Market: How In-Migration Fueled Growth and Led to Rising Rents, But Now Faces Vacancy and Slowdown Challenges.

 

 

The impact of in-migration on the US Sun Belt, an area stretching from Phoenix to Florida and up to Tennessee and the Carolinas. The surge in population beginning in 2020 has resulted in a historic rate of new development activity and record rates of apartment rent growth across the region. However, vacancy rates in the 14 multifamily markets with at least 100,000 units of existing inventory are up 240 basis points over the past year, and population growth is beginning to cool, leading to a slower pace of demand. The article explores how rising rents, consumer insecurity regarding recessionary concerns, and fewer potential renters willing to commit to lease obligations are affecting the Sun Belt's rental market.

 

CoStar "The Supply and Demand Paradigm Continues To Shift in the Sun Belt"