The U.S. apartment market is entering a more balanced phase after several years dominated by a large wave of new construction. In the second quarter, CBRE recorded net absorption of 167,000 units, meaning apartment occupancy increased by that amount across the markets it tracks. All 69 markets included in the research reported positive absorption, a sign that demand remained broad rather than concentrated in only a few cities.
That demand has helped landlords work through elevated supply. National multifamily vacancy stood at 4.3% in the second quarter, while average monthly rent reached $2,257, an increase of 0.5% year over year and 1.5% from the prior quarter. At the same time, new apartment completions fell 14% year over year to 77,700 units. CBRE expects deliveries to continue declining through the remainder of the year.
The changing supply picture matters for luxury renters and developers alike. When many new buildings open at once, property owners often compete for residents through concessions, lower effective rents, or added incentives. As the construction pipeline narrows, newly completed communities have a better chance to lease at their intended pricing and reach stable occupancy more quickly.
Mixed-use apartment communities have become an increasingly visible part of this market. These projects pair rental homes with retail, coworking areas, restaurants, and shared outdoor space. The goal is to offer residents a more complete daily environment, particularly in walkable urban districts near employment, dining, cultural attractions, and waterfronts.
Florida illustrates both the opportunity and the competition in this segment. Population growth and a strong appeal to relocating households have supported rental demand, while elevated home prices and borrowing costs have kept many people renting rather than buying. Yet Florida has also seen substantial apartment construction, especially in growing metropolitan areas. That means luxury projects must distinguish themselves through location, design, amenities, and access to everyday services.
Downtown St. Petersburg has become one of the places where those factors come together. Its waterfront, restaurants, arts scene, and employment base give residents reasons to live close to the city center. The EDGE District, in particular, combines older urban character with newer development, making it a natural setting for apartment projects that include ground-floor retail and public space.
VIV, a 269-unit luxury mixed-use apartment community in that district, is now testing that demand. Developed by Belpointe PREP, LLC (NYSE American: OZ), the property began leasing in October last year. According to the company’s recent announcement, more than 80% of VIV’s residential units had been leased within its first year of lease-up.
The property includes two connected residential towers with studio, one-, two-, and three-bedroom apartments. Residents have access to private terraces, chef’s kitchens, Tampa Bay views, a rooftop Sky Lounge, coworking space, a resort-style pool and courtyard, a fitness center, and an urban dog park. It also has ground-floor retail space, pedestrian corridors and a pocket park connecting the development to the surrounding neighborhood.
Belpointe OZ expects VIV to reach stabilization between late 2026 and early 2027. Stabilization is an important transition for a new development. It generally means the property has moved beyond its initial lease-up period and reached a more durable occupancy level, allowing it to operate as a steadier source of rental income.
The announcement also includes progress beyond VIV. Belpointe OZ said that leasing momentum at Aster & Links, together with VIV’s performance, places the company close to having both of its completed developments stabilized. That shift would move the company’s focus from construction and initial leasing toward property operations and the next phase of its development pipeline.
Belpointe OZ describes itself as the only Qualified Opportunity Fund listed on a national securities exchange. It reports having more than 1,000 units across three cities, including completed units and projects in its development pipeline, with projected gross asset value above $1.0 billion.
VIV’s 80% leased milestone therefore reflects more than one building’s leasing success. It shows how improving national apartment fundamentals, continued interest in walkable mixed-use living, and the appeal of downtown St. Petersburg can converge in a single property. The next test will be whether VIV can convert its strong first-year leasing pace into stabilized occupancy and durable rental performance.
