Shafiq Hirani CCIMReal Estate Advisor, REMAX Distinctive · Real Estate Advisor at RE/MAX Distinctive Commercial | Washington, DC | Your Guide To Profitable Real Estate Ventures

Apartment Market Crash Explained: Oversupply is OVER! #shorts

12 Jun 2026 · 0 min

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In this brief commentary, the speaker attributes recent improvements in the apartment market to a sharp contraction in supply rather than any changes to existing buildings. He highlights three key data points: (1) apartment construction starts in the first quarter of the year fell to their lowest level since 2011, representing a 73% decline from the early‑2022 peak; (2) the total number of units currently under construction nationwide has been cut in half from its previous high; and (3) building permits, which signal future development, continue to decline. Together, these trends indicate that the oversupply wave that has pressured the market is ending, offering a positive outlook for the sector.

It wasn't you and it wasn't your building. It was supply. And here's the good news. That wave is ending. Look at what's happened to new construction. Apartment starts in the first quarter of this year fell to their lowest level since 2011. That's a 73% drop from the peak we saw back in early 2022. The number of units under construction nationwide has been cut in half from its peak, and permits, which tell you what's coming next, are still falling.