Cities primarily along the Sun Belt region of the nation had impressive showings among the top markets with strong net absorption in multifamily. For Denver, Atlanta, and Dallas they can rest easy knowing they led the nation in both occupancy and retention. The average national apartment occupancy rate at the end of 2020 was 94.7%.
“Net absorption of apartment units declined by only 12 percent compared to 2019, to 252,000 units or 1.7 percent of the country’s total apartment stock.”
Several trends coincided against larger metropolitan cities in 2020 although multifamily is expected to pick up, like many sectors, with the promise of new vaccines.
According to Real Estate Data Firm Yardi Matrix, 25 of the nation’s 30 largest metropolitans posted strong net absorption of roughly 158,000 units. For some time now, the Sun Belt region has been experiencing sudden influxes of tenants, and it’s no different now during the pandemic. Places like Austin, San Diego, Summerlin-Las Vegas, and Phoenix have been surging over the last several years, despite not having reputations as the most posh destinations. It’s no surprise why those cities mentioned made the Yardi Matrix Top-20 Markets for Net Absorption in 2020.
“The Southeast region led the country in both overall absorption, at 96,740 apartment units, and in the percentage of available stock that’s been absorbed, at 2.4 percent.”
Top-20 List – Yardi Matrix
- San Antonio
- Inland Empire
- Las Vegas
- Twin Cities
- San Diego
- Washington D.C.