15 Worst Apartment Markets

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US Tariff Timeline Expands Again—What It Could Mean for Real Estate and Supply Chains link

• A new wave of U.S. tariffs has been rolling out steadily since early February, signaling a shift back toward protectionist trade measures. Real estate tied to logistics, ports, and manufacturing could see pricing shifts and supply ripple effects.

• The Apollo chart suggests a cumulative trend, not isolated hikes—indicating these tariffs may be strategic, prolonged, and possibly linked to geopolitical or election-year dynamics. That could mean longer-term impacts on construction material costs and timelines.

• Investors in markets dependent on imports—like industrial and multifamily developers using overseas materials—should monitor this closely. Tariff volatility could increase deal risk or compress margins if inflationary pressures return.

Multifamily rents inch up—even in slumping markets link

• U.S. multifamily rents rose by $6 in May to $1,761, marking a 1% year-over-year increase, even as economic uncertainty persists. Demand is holding steady in metros with high supply pipelines.

• Struggling markets like Denver, San Francisco, Dallas, and Austin still saw positive rent growth in May, a shift from recent underperformance.

• Build-to-rent single-family homes saw a fourth straight month of rent gains, reaching an average $2,183—just $2 short of their all-time high.

Office Market Rebounds Fast—Investors Chase $100M+ Deals link

• Office buildings priced over $100M saw a nearly 50% increase in volume during early 2025, with 20 large assets sold compared to just 11 in the same period last year. Investor demand is now outpacing supply for high-quality assets.

• Cap rates on premium office buildings remain elevated post-COVID, offering better risk-adjusted returns than before. Around 35% of U.S. office stock is considered obsolete and may exit the market, tightening future supply.

• Bidding pools for major office assets jumped 65% year-over-year, fueled by $375B in available capital from closed-end funds and record levels of private capital targeting U.S. real estate. New supply is at historic lows—only 6M sq. ft. expected in 2026, down 90% from prior norms.

Why Shifting Inventory Could Catch Buyers and Sellers Off Guard link

• New listings are now outpacing closed sales, which means supply is building—and sellers are losing leverage. This signals a shift toward a buyer-favored market in many areas.

• Sellers who price too high risk getting overlooked, especially as builders offer aggressive incentives like mortgage buydowns. Traditional listings need to be more competitive or risk sitting.

• Despite national trends, real estate performance varies wildly by neighborhood and price tier. Micro-trends are more important than ever for both pricing and timing decisions.

Where You Can Still Buy a Home for $300K or Less in 2025—Including 22 Major Cities link

• Detroit leads with a median home price of just $109,000—up 276% in the past decade in its cheapest neighborhoods, signaling a sharp rebound investors may want to note. Estimated monthly mortgage cost: $762 with 20% down at current rates.

• Over 140 U.S. cities now have a median listing price at or below $300,000, mostly in the South and Midwest where inventory has not just recovered post-COVID, but grown beyond 2019 levels. Cities like St. Louis, Memphis, and Baltimore offer affordability with urban convenience.

• Florida cities like Ocala, Jacksonville, and Clearwater all come in under the $300K mark, offering sunbelt demand with cheaper entry points. Meanwhile, Oklahoma and Texas metros are showing strong inventory, giving buyers leverage and choice.

• click on the link to see the rest of the list.

South Slips: 12 of 15 Worst Apartment Markets Are Here link

• Occupancy in the South dropped to 94.8%—a 170 bps decline year-over-year and the only U.S. region trailing the national average of 95.7%. The Northeast led with 97.1%, showing a stark regional gap.

• San Antonio posted the nation’s lowest occupancy rate at 93.1%, despite demand. Its apartment stock has jumped 35% since 2020, outpacing absorption.

• Austin and Fort Worth also dropped below 94%, with Fort Worth falling more than 200 bps below its pre-pandemic average. Even booming metros can’t keep up with the current flood of new supply.

Arch

Arch analyzes public data, customer history, and various signals to identify homes with HVAC systems nearing the end of their lifecycle. Marketing and sales AI

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