Apartment Demand Readily Surpasses Contracting Construction Pipeline, Supporting Minimal Vacancy
Rental demand exceeds supply growth, dropping vacancy to multiyear low. Job creation by local organizations and migration from nearby New York continue to support household formation in the New Haven-Fairfield County region. The high cost of homeownership prompts many residents to rent, emphasizing the need for available units. Over the past three years, apartment demand has exceeded supply additions by more than 2,000 rentals, contributing to a 240-basis-point vacancy decline over that span to 3.6 percent in September. Vacancy has not dropped below 4 percent since 2010, and tight operations underpin rent growth. The average monthly payment is advancing the fastest in the Bridgeport/Danbury and Stamford/Norwalk submarkets, especially among Class A units.