Keys Without Keepers: The Challenge of Oversupply in Multifamily

When a flood of new apartment buildings is under construction, one might assume prospects would breathe easier: more options, more competition, perhaps even falling rental prices. Right now, that’s exactly what’s happening in many U.S. metro areas. But like any story in multifamily, the details matter; and the effects are uneven. The apartment surge is colliding with a market that’s beginning to change shape, and it’s forcing owners and managers to rethink how they stand out.

The Supply Surge & Its Ripple Effects

In cities across the country, cranes and scaffolding have become as common as coffee shops. According to Axios, the U.S. is experiencing a 50-year high in multifamily construction, particularly in Southern and Western metros. That surge has dramatically expanded available supply, tipping the balance in markets where demand can’t keep up.

The most immediate impact is on pricing. National rent growth has slowed to under 1% year-over-year in 2025’s second quarter, a clear sign that landlords’ pricing power is softening, as reported by CRE Daily. With renters now spoiled for choice, landlords are having to compete harder to fill units.

One of the clearest signs of this shift? Concessions are back. ApartmentIQ’s Q1 2025 data showed nearly one in four units nationwide advertised some kind of discount: think a free month of rent, waived move-in fees, or flexible lease terms. Concessions like these were once occasional sweeteners; now they’re becoming standard operating procedure.

The Pressure on Class B & C

Newly built, amenity-rich Class A properties have a natural advantage in a crowded market. They draw attention from prospects seeking modern finishes, coworking lounges, and rooftop pools. But their growth has ripple effects for older Class B and C stock.

Owners of these properties often feel the squeeze first. As Pew notes, many renters who previously would have settled for mid-market units are now stretching their budgets to take advantage of new supply, leaving B and C properties to compete more aggressively on price or perks. The result is a wave of discounts, minor upgrades, or concessions that chip away at profitability.

And yet, these properties remain critical. Rising living costs mean plenty of renters still prefer affordability over luxury, as long as they can find and trust those options. The challenge isn’t just offering value; it’s making sure renters notice it amid the noise.

Cutting Through the Noise

When every property is touting “one month free” or “reduced deposits,” price alone stops being a differentiator. The real battleground becomes visibility: ensuring your property is the one renters see and remember while they’re actively searching.

That’s where Apartment Geofencing steps in. Rather than casting a wide marketing net, geofencing technology pinpoints renters in real time, whether they’re touring a competitor property, walking into a leasing office, or even browsing in nearby neighborhoods.

For a Class B or C community, that might mean intercepting a renter who’s visiting a brand-new Class A building and serving them an ad that highlights your stronger value proposition: lower rent, flexible terms, or a friendlier community feel. For a Class A property, it could mean reinforcing awareness of your premium amenities or current concessions before the competitor down the street gets there first.

Because geofencing campaigns can be updated instantly, owners can adjust to shifting conditions: spotlighting move-in specials during oversupply, or creating urgency around limited inventory when construction slows.

The Road Ahead

The flood of new buildings won’t last forever. Derivative Logic reports that multifamily stats are already declining, which means the record-breaking supply pipeline will eventually taper off. Once that happens, markets could tighten again and rent growth may rebound.

But in the meantime, owners are operating in an environment of heavy supply, cooling rents, and rising concessions. Apartment Geofencing offers a way to stay competitive without relying solely on discounts. It ensures your property isn’t just another listing in the pile; it’s the property renters remember, tour, and ultimately choose.

Closing Thought

The multifamily growth has shifted the rules of the rental game. Renters have more choices, concessions are widespread, and competition is fierce. But with smarter tools like Apartment Geofencing, owners can do more than wait for the cycle to turn.

Because while you can’t control how many apartments get built, you can control how your property shows up in the renter’s journey.

Book a demo today to learn how to amplify your apartment strategy.

Resources: CRE Daily, Axios, ApartmentIQ, Pew, Derivative Logic