RDE Capital Group LLC

Source: CoStar Group

As we enter August, the vacancy rate has reached 10.7%, which remains above the 10-year average of 8.1%. This elevated rate is primarily driven by a mismatch between the number of new units entering the market and the slower pace at which renters are absorbing these units. Over the past year, tenants have rented 23,000 units while builders have delivered 39,000 units. Consequently, despite robust demand, the influx of new units continues to surpass absorption rates. This trend is projected to persist until 2025.