After consistently trending upward over the past decade, the allocation of apartment sales dollars flowing into the Sun Belt markets took a big leap in the past 18 months.
As of 3rd quarter 2021, nearly 60% of the nation’s property sales volume was focused in the Sun Belt, according to data from Real Capital Analytics. Coastal gateway markets accounted for roughly 20% of sales, while the rest of the nation made up the other 20%.
While investment trends have been moving in this direction for at least a decade now, notable shifts have occurred just in the past year and a half. The share of apartment sales in Sun Belt markets increased by 8.3% in the past 18 months, while the portion of investments in the coastal gateway markets declined by 7.4% during the same time frame.
Contributing to the attractiveness of such investments, Sun Belt markets have seen notable apartment demand in the past year and a half, pushing occupancy and rent growth to record levels as of 3rd quarter 2021. The more expensive and more densely populated coastal gateway markets, on the other hand, were hit harder by the COVID-19 pandemic. While these markets have been enjoying a strong recovery in recent months, occupancy and rent growth performances in gateway markets still lag Sun Belt norms.
To learn more about the data behind this article and what RealPage has to offer, visit https://www.realpage.com/.
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