Apartment Rental in the US - Industry Market Research Report

For rent: An oversupply of rentals will hamper industry revenue

Apartment lessors provide housing to renters either in a property that they own or in a property that they rent themselves. Lessors have enjoyed a period of success recently, although the pandemic and general economic shifts have disrupted the industry and slowed growth. The economic recession brought on by the pandemic resulted in falling rent prices in line with rising unemployment. Also, those that could afford to largely chose to leave cities as the pandemic incentivized people to focus on their living situations. According to the Apartment List National Rent Report, rent prices shot up following the end of pandemic-related restrictions as lessors sought to recoup lost revenue and booming economic conditions led to higher consumer spending. Rental vacancy rates have also resumed growth, as lessors hold empty apartments to preserve these high rates. Overall, revenue has grown at a CAGR of 0.9% to $251.1 billion over the past five years, despite a decline of 0.9% in 2023. Operators in this industry act as lessors of buildings used as residences or dwellings. Industry participants are owner-lessors of residential buildings and establishments that rent real estate and then act as lessors by subleasing it to others. In addition to apartments, the industry also rents single-family homes and town houses. This report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecasts, growth rates and an analysis of the industry key players and their market shares.