A dramatic shift is reshaping the nation’s rental housing market. According to RealPage, 15 of the 50 largest U.S. apartment markets posted all-time record demand in the year ending with the second quarter of 2025. In these cities, absorption not only far outpaced historical averages but also surged ahead of elevated completion volumes, marking a decisive turn in favor of landlords.

Looking closely at the numbers, cities such as Dallas, Atlanta and Phoenix set the tone. Dallas absorbed 42,230 units over the past year, compared with an annual average of just 16,800 from 2014 to 2024. Atlanta saw demand jump to 32,917 units, triple its typical annual absorption of 10,313, while Phoenix hit 32,087 units—over three times its historical norm of 8,849. Charlotte, Philadelphia, Raleigh/Durham and Tampa also experienced remarkable increases, with demand numbers far exceeding previous averages.

Mid-sized markets joined the trend. San Antonio absorbed 15,083 units, while its past annual average hovered at 4,826. Columbus reached 9,807 compared to 4,322, Riverside tallied 8,146 from a baseline of just 1,569 and Baltimore saw demand swell to 6,769 units—almost triple its earlier average. St. Louis, Virginia Beach, Greensboro and Memphis rounded out the list, each recording demand figures that were multiples of their typical annual absorption.

This historic demand played out alongside a significant increase in new supply. Dallas added 33,545 new units in the latest year, nearly doubling its former annual average. Atlanta delivered 22,065 units, up from 11,532 and Phoenix completed 27,194, compared to 9,707 historically. Markets such as Charlotte, Philadelphia, Raleigh/Durham and Tampa echoed these gains, all posting supply growth, with some recording twofold above prior averages. The same pattern emerged in San Antonio, Columbus, Riverside and others, with construction booming across the board.

Yet, despite this spike, most of these cities saw rental demand outstrip new apartment completions. From 2014 to 2024, demand nationwide averaged just 92% of supply, which meant plenty of choice for renters and sustained competition among landlords. That flipped dramatically during the year ending with the second quarter of 2025, when demand soared to an average of 167% of supply in the 15 record-setting markets.

The impact was stark. In Dallas, demand reached 126% of supply, up from 88% over the last decade. Atlanta’s ratio hit 149%, compared to a long-term average of 89%. Phoenix landed at 118%, Charlotte at 120% and Philadelphia hit a notable 150%. Double-digit demand-to-supply ratios transformed the market in Raleigh/Durham (122%), Tampa (144%) and San Antonio (132%). Columbus, Riverside and Baltimore were all well above historical norms, with the Charm City’s demand reaching 207% versus an old average of 87%. St. Louis, Virginia Beach, Greensboro and Memphis showed some of the most pronounced shifts, with Q2 2025 demand more than double or nearly triple supply, compared to much lower historical averages.

RealPage emphasized that the majority of these all-time demand markets were located in the South. The years-long construction boom in these southern cities has previously dampened rent growth and raised vacancy rates, but these latest figures suggest that era is coming to an end, ushering in a new phase where surging demand is reshaping the balance—potentially leading to tighter markets and greater pricing power for property owners.  – more at globest.com

 

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