Apartment demand and supply move together across who’s renting and how new housing comes online. Millennials represent 45% of apartment renters, and Gen Z grew 20% from 2020 to 2023, reshaping unit needs. As the pipeline expanded—711,000 construction starts in 2022 and 44.1 million apartment units in 2023—vacancy and rent trends evolved, from 6.6% vacancy in Q4 2023 to $1,709 average rent in December 2023.
Key Takeaways
- Millennials comprise 45% of apartment renters
- Gen Z renters grew 20% from 2020-2023
- 37% of renters are aged 25-34 in 2023
- The U.S. apartment market reached 44.1 million units in 2023
- Multifamily housing accounted for 18% of the total U.S. housing stock in 2022
- Apartment construction starts totaled 711,000 units in 2022
- National vacancy rate was 6.6% in Q4 2023
- Occupancy rate for Class A apartments was 95.2% in 2023
- Absorption totaled 250,000 units in 2023
- National average rent reached $1,709 in December 2023
- Rent growth slowed to 3.1% YoY in Q4 2023
- Median rent for studios was $1,441 in 2023
- Multifamily starts reached 460,000 units in 2023
- Under-construction inventory peaked at 800,000 units 2023
- Completions totaled 436,000 units in 2023
Millennials remain the largest renter group as rent climbs slowly, vacancy stays moderate, and construction continues.
Related reading
01 · Category
Demographics And Consumer Trends20 stats
01
Millennials comprise 45% of apartment renters
02
Gen Z renters grew 20% from 2020-2023
03
37% of renters are aged 25-34 in 2023
04
Single-person households represent 35% of renters
05
55% of renters prioritize amenities over location
06
Remote workers increased apartment demand by 15%
07
62% of renters are non-homeowners under 35
08
Hispanic renters grew to 25% of total in 2022
09
Average renter household income was $52,000in 2022
10
Pet ownership rose to 70% among renters 2023
11
40% of renters under 30 prefer urban apartments
12
Female-headed households 25% of renters
13
EV charger demand up 30% among renters 2023
14
28% of renters aged 35-44 in 2022
15
Shared living appeals to 22% of young renters
16
Median renter age rose to 32 in 2023
17
Black renters 20% of market share 2022
18
Fitness amenities sought by 75% of prospects
19
Boomerang kids boosted household formation 10%
20
Tech-savvy renters 65% use apps for leasing
Interpretation
Demographics And Consumer Trends Interpretation
As Millennials make up 45% of apartment renters and Gen Z grew 20% from 2020 to 2023, the demographic shift is clearly reshaping consumer demand, especially since 55% of renters prioritize amenities and remote workers have increased demand by 15%.
02 · Category
Market Size And Growth15 stats
01
The U.S. apartment market reached 44.1 million units in 2023
02
Multifamily housing accounted for 18% of the total U.S. housing stock in 2022
03
Apartment construction starts totaled 711,000 units in 2022
04
The rental apartment sector grew by 2.5% annually from 2018-2023
05
U.S. multifamily occupancy averaged 94.5% in Q4 2023
06
Institutional apartment ownership controlled 15 million units in 2023
07
The apartment industry generated $250 billion in revenue in 2022
08
Multifamily completions hit a record 509,000 units in 2021
09
Apartment demand exceeded supply by 300,000 units in 2023
10
The U.S. had 22.8 million renter households in 2022
11
U.S. apartment inventory hit 44.2 million units Q1 2024
12
Multifamily market cap rates averaged 5.4% in 2023
13
Apartment sales volume reached $75 billion in 2023
14
Rent rolls valued at $1.2 trillion nationally 2023
15
Institutional portfolios averaged 25,000 units per owner
Interpretation
Market Size And Growth Interpretation
With the U.S. apartment market at 44.1 million units in 2023 and rental apartments expanding 2.5% annually from 2018 to 2023, growth remains steady in a market where multifamily makes up 18% of the housing stock and occupancy averaged 94.5% in Q4 2023.
03 · Category
Occupancy And Vacancy19 stats
01
National vacancy rate was 6.6% in Q4 2023
02
Occupancy rate for Class A apartments was 95.2% in 2023
03
Absorption totaled 250,000 units in 2023
04
Vacancy rates rose to 7.1% in new deliveries 2023
05
Physical occupancy averaged 93.8% nationally 2023
06
Demand for apartments was 320,000 units in 2023
07
Stabilized occupancy held at 94% through 2023
08
Vacancy increased 80 bps YoY to 6.9% in Q3 2023
09
Net absorption slowed to 180,000 units H2 2023
10
Economic occupancy dipped to 92.5% in 2023
11
Stabilized vacancy at 7.2% Q1 2024
12
Lease-up pace slowed to 92% in 60 days 2023
13
Demand outpaced supply by 50,000 H1 2023
14
Class B occupancy 93.1% nationally 2023
15
Turnover rate averaged 48% in 2023
16
Atlanta vacancy rose to 8.5% 2023
17
Net absorption 220,000 units Q1-Q3 2023
18
Economic vacancy 91.8% for new builds 2023
19
Occupancy recovered to 94.1% post-pandemic
Interpretation
Occupancy And Vacancy Interpretation
In the occupancy and vacancy picture for 2023, vacancies edged up with the national vacancy rate at 6.6% in Q4 and rising to 7.1% in new deliveries, even as demand reached 320,000 units and physical occupancy averaged 93.8% nationwide.
More related reading
04 · Category
Rental Rates And Affordability19 stats
01
National average rent reached $1,709in December 2023
02
Rent growth slowed to 3.1% YoY in Q4 2023
03
Median rent for studios was $1,441in 2023
04
One-bedroom rents averaged $1,630nationally in 2023
05
Rent burden exceeded 30% for 50% of renters in 2022
06
Luxury apartment rents grew 4.2% in 2023
07
Average two-bedroom rent was $1,884in 2023
08
Rent affordability ratio hit 28.5% of median income in 2023
09
Suburban rents rose 5% faster than urban in 2023
10
Effective rent growth was 2.8% in Sun Belt markets 2023
11
Rent growth peaked at 14% YoY in 2022 early
12
Asking rents up 25% since 2020 low
13
Three-bedroom rents averaged $2,320in 2023
14
Rent concessions offered in 40% of units Q4 2023
15
Affordability gap widened to 10 million units 2023
16
Mid-tier rents grew 3.5% YoY 2023
17
Rent-to-income ratio at 29% for millennials
18
Phoenix saw 6% rent growth in 2023
19
NYC median rent $4,100in 2023 peak
Interpretation
Rental Rates And Affordability Interpretation
As of December 2023, the national average rent hit $1,709 while rent growth cooled to 3.1% YoY, yet affordability remains strained because rent burden topped 30% for 50% of renters in 2022.
05 · Category
Supply And Construction20 stats
01
Multifamily starts reached 460,000 units in 2023
02
Under-construction inventory peaked at 800,000 units 2023
03
Completions totaled 436,000 units in 2023
04
Permits issued for 450,000 multifamily units 2023
05
New supply added 4% to inventory in top markets 2023
06
Sun Belt construction boom added 200,000 units 2023
07
Class B/C supply growth was 1.5% nationally 2023
08
Total under construction fell 10% YoY late 2023
09
Adaptive reuse added 15,000 apartment units 2023
10
Forecast completions: 400,000 units in 2024
11
32% of new units were workforce housing in 2023
12
Completions forecast 350,000 in 2024
13
Under construction down 5% YoY Q4 2023
14
550,000 units permitted in top 50 markets 2023
15
New deliveries 120,000 units Q4 2023
16
Southeast supply growth 3.2% 2023
17
Purpose-built student housing added 50,000 beds
18
LIHTC units delivered 120,000 in 2022
19
Total starts declined 25% late 2023
20
Senior housing construction up 10% 2023
Interpretation
Supply And Construction Interpretation
In 2023, multifamily developers kept supply moving with 460,000 starts and 450,000 permits, while under construction peaked at 800,000 units and completions came in at 436,000, signaling a sustained Supply and Construction pipeline despite new supply adding 4% in top markets and the Sun Belt boom contributing 200,000 units.
report visual · Key figures
Apartment renter demographics and demand signals
Younger renter segments and lifestyle preferences are shaping apartment demand and amenity priorities.
20%
Gen Z renters grew 20% from 2020-2023
37%
37% of renters are aged 25-34 in 2023
62%
62% of renters are non-homeowners under 35
55%
55% of renters prioritize amenities over location
15%
Remote workers increased apartment demand by 15%
30%
EV charger demand up 30% among renters 2023
report visual · Key figures
U.S. apartment market scale and growth momentum
Apartment growth has been steady and backed by large, expanding multifamily inventory—supporting sustained demand across 2018–2023 and into early 2024.
2.5%
The rental apartment sector grew by 2.5% annually from 2018-2023
44.2
U.S. apartment inventory hit 44.2 million units Q1 2024
44.1
The U.S. apartment market reached 44.1 million units in 2023
report visual · Breakdown
Apartment occupancy vs. vacancy
Vacancy remains in the high-single-digits while occupancy stays in the low-to-mid 90% range.
7.1%
Vacancy rates rose to 7.1% in new deliveries 2023
93.1%
Class B occupancy 93.1% nationally 2023
report visual · Comparison
Rental rates and affordability snapshot
Rents are rising, but affordability pressure remains high for many renters.
Rent concessions offered in 40% of units Q4 202340%
Rent burden exceeded 30% for 50% of renters in 2022
30%
Rent affordability ratio hit 28.5% of median income in 2023
28.5%
National average rent reached $1,709 in December 2023
$1,709
report visual · Key figures
Supply and construction activity: starts, inventory, and completions (2023–2024)
In 2023, multifamily starts, under-construction inventory, and completions were all high, with forecasts continuing into 2024.
460,000
Multifamily starts reached 460,000 units in 2023
800,000
Under-construction inventory peaked at 800,000 units 2023
436,000
Completions totaled 436,000 units in 2023
400,000
Forecast completions: 400,000 units in 2024
350,000
Completions forecast 350,000 in 2024
450,000
Permits issued for 450,000 multifamily units 2023
Reference
Cite This Report
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APA
Diana Reeves. (2026, February 13). Apartment Industry Statistics. Gitnux. https://gitnux.org/apartment-industry-statistics
MLA
Diana Reeves. "Apartment Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/apartment-industry-statistics.
Chicago
Diana Reeves. 2026. "Apartment Industry Statistics." Gitnux. https://gitnux.org/apartment-industry-statistics.
Sources & references
24 datasets cited across this report · attribution is report-level