With all the challenges to development on the horizon, the Radius+ team took at the top 3 markets within the Top 25 Markets that saw the biggest slow down in supply growth YoY when comparing 2022 to 2023. This allowed us to see the markets that had a slow down in supply growth, which in turn will lead to less new competition coming online in these markets.
The Phoenix-Mesa-Scottsdale, AZ CBSA saw 9.2% supply growth in 2022, which decreased to a 5.2% increase of supply added in the year of 2023.
The Detroit-Warren-Dearborn, MI CBSA saw 3.7% supply growth in 2022, which decreased to 1.6% increase of supply added in the year of 2023.
The Minneapolis-St. Paul-Bloomington, MN-WI CBSA saw 3% supply growth in 2022, which decreased to 1% increase of supply added in the year of 2023.
With supply growth slowing down in these markets we will likely see rates will slowly uptick as new competition being added slows down, and demand catches up with the supply.
