At the national level, multifamily average occupancy peaked in Q4 2021 at just over 94% and has steadily declined ever since. Average effective rent growth has slowed for three consecutive months now, making third quarter growth the lowest of any quarter since Q1 2021. Despite very low apartment demand for the entirety of 2022, now that third quarter numbers are in, these changes in multifamily conditions are beginning to get more attention.
A full third quarter review will be the subject of ALN’s upcoming monthly newsletter (make sure to subscribe below), so in this space today we’ll look at the Top 5 markets according to largest average occupancy decline in the quarter and largest average effective rent decline in the quarter.
For more detailed information on each of the markets listed, ALN offers complimentary Market Review reports.
Top 5 Markets: Largest Average Occupancy Decline
|Market||Avg Occupancy Chg||Avg Occupancy|
|FL - Fort Myers/Naples||-5.6%||86.3%|
|GA - Savannah||-5.2%||90.5%|
|TX - Rio Grande Valley||-5.1%||92.0%|
|SC - Myrtle Beach||-3.2%||91.5%|
|TX - Corpus Christi||-2.9%||88.0%|
Top 5 Markets: Largest Average Effective Rent Decline
|Market||Avg Effective Rent Change||Avg Effective Rent|
|LA - Lake Charles||-1.8%||$983|
|FL - Fort Myers/Naples||-1.0%||$2,018|
|FL - Palm Beach||-0.9%||$2,378|
|HI - Honolulu||-0.6%||$2,121|
|NV - Reno||-0.6%||$1,594|
For the most part, the areas that were hit especially hard in the third quarter are smaller markets responding significantly to seasonal effects with the end of summer occurring during the quarter and given the proportion of summer travel destinations on the two lists.
It is also worth mentioning that all but three business days of the quarterly data was collected prior to Hurricane Ian making landfall in the Fort Myers – Naples region. As a result, the declines observed in that market for the quarter should not be substantially attributed to the hurricane.
Disclaimer: All content and information within this article is for informational purposes only. ALN Apartment Data makes no representation as to the accuracy or completeness of any information in this or any other article posted on this site or found by following any link on this site. The owner will not be held liable for any losses, injuries, or damages from the display or use of this information. All content and information in this article may be shared provided a link to the article or website is included in the shared content.
Want to Receive Our Free Monthly Newsletter?
If you don't already receive the ALN Apartment Data monthly newsletter, click the button and tell us how to send it to you.