Apartment construction in Southern states led every other region for the past four years, resulting in rent growth slowing this year after soaring in 2021 and 2022.
Construction eased in the last half of 2022 from a peak of 71,000 units in the second quarter of last year as lending tightened with rising interest rates, according to Census Bureau data. Still, for the year, 222,000 apartment units were built, the most in four years.
Meanwhile, apartment construction in the Midwest was at lower levels than other regions.
While Midwest rent growth wasn’t as strong as in the South, the lower level of construction meant Midwest rents haven’t dropped at the same pace as Southern states — and the Midwest now leads the country for rent growth.