Apartment Supply Drops Below 100K Units Nationwide

Quarterly Apartment Supply Cools

US apartment supply volumes cooled in the fourth quarter of 2025, ending an unprecedented 10-quarter streak above 100,000 unit completions. Approximately 89,400 new apartments were delivered during this period, the lowest quarterly total since early 2023, according to RealPage Analytics. This marked a significant tapering from historic highs reached in 2024, when quarterly completions peaked before supply volumes began to ease through the remainder of the year.

Regional Patterns Shift

Every US region reported a decline in quarterly apartment supply in Q4 2025. The South continued leading with roughly 47,500 completions, but this was less than half the region’s record peak of nearly 91,800 units in Q3 2024. It was also the first time in nearly three years that the South’s completions dropped below 50,000 units in a quarter. The West followed with over 22,000 new units, down by about 3,700 from the previous quarter. Both the Northeast and Midwest saw milder delivery volumes near 10,000 units each.

Leading Markets Stand Out

Locally, Phoenix and New York stood out as top markets for new apartment supply in the last quarter of 2025. Both cities delivered over 6,000 units despite the national pullback. While apartment supply momentum cooled across the board, these metros remained leaders in new completions to close the year.

Outlook for Apartment Supply

Industry observers expect apartment supply to remain below recent highs in coming quarters due to elevated construction costs and softer demand. This follows an extended period of unusually high activity, when completions remained above the 100,000-unit mark for ten straight quarters. The pullback brings delivery volumes in line with longer-term averages, potentially alleviating pressure on leasing fundamentals in some markets. Apartment supply data will remain a key indicator to watch in 2026 as developers respond to shifting market conditions.