According to RealPage, the national apartment occupancy rate is at an 18-year high.
This is fantastic news for apartment syndicators and passive apartment investors. The higher the occupancy rate at an apartment, the higher the net operating income. Also, higher occupancy rates result in higher rental rates due to the lower supply of available units.
While the overall market is at an 18-year high, seven markets either achieved an all-time high or a 20-year high. Here is a breakdown of the seven MSAs with record-breaking occupancy levels in the second quarter of 2019:
All-Time High Occupancy Levels
1. Cincinnati, OH-KY-IN
2Q19 Occupancy: 96.7%
Cycle Average: 95.1%
2. Phoenix-Mesa-Scottsdale, AZ
2Q19 Occupancy: 96.2%
Cycle Average: 93.1%
3. Greensboro/Winston-Salem, NC
2Q19 Occupancy: 95.8%
Cycle Average: 93.1%
20-Year High Occupancy Levels
4. Detroit-Warren-Dearborn, MI
2Q19 Occupancy: 97.1%
Cycle Average: 95.0%
5. Philadelphia-Camden-Wilmington, PA-NJ-DE-MD
2Q19 Occupancy: 96.5%
Cycle Average: 95.2%
6. Raleigh/Durham, NC
2Q19 Occupancy: 95.5%
Cycle Average: 94.3%
7. St. Louis, MO-IL
2Q19 Occupancy: 95.1%
Cycle Average: 93.4%
Bonus: 10-Year High Occupancy Levels
8. Washington-Arlington-Alexandria, DC-VA-MD-WV
2Q19 Occupancy: 96.2%
Cycle Average: 95.3%
9. Virginia Beach-Norfolk-Newport News, VA-NC
2Q19 Occupancy: 96.1%
Cycle Average: 93.1%
10. Las Vegas-Henderson-Paradise, NV
2Q19 Occupancy: 96.0%
Cycle Average: 93.1%
11. Baltimore-Columbia-Towson, MD
2Q19 Occupancy: 95.5%
Cycle Average: 94.8%