US apartment demand outpaces new supply in Q1 2026, Bonaventure says
XLRE•U.S. apartment demand reached approximately 93,300 units in Q1 2026, exceeding roughly 75,205 completions. National occupancy rose from 94.9% in Q1 to 95.5% by May as construction moderated.
1. Demand exceeds completions
Approximately 93,300 U.S. apartment units were absorbed in Q1 2026, compared with roughly 75,205 new completions. National occupancy reached 94.9% in Q1 and 95.5% by May as new construction moderated.
2. Portfolio allocation analysis
A separate analysis found that allocating 10% to private real estate reduced traditional 60/40 portfolio volatility by approximately 9.6% over 20 years through Q4 2025, while annualized returns slipped to 8.02% from 8.21%. Another analysis found a 10% allocation improved risk-adjusted returns by 12% over Q2 2015–Q1 2025.
