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Special Report

Multifamily National Report

2Q 2024

First Quarter Absorption was the Strongest on
Record, yet New Supply is Hindering Momentum

Multifamily demand indicators signal meaningful progress. The number of occupied apartments nationwide surged by nearly 104,000 rentals from January through March 2024, the strongest first quarter net absorption on record. Over the opening three months of the past 30 years, only about 12,500 units were absorbed on average. This abnormally robust start to 2024, with traditionally strong spring and summer months still to come, should put net absorption on track to reach a three-year high, barring any unexpected setbacks. Several other indicators help demonstrate the ongoing improvement. In April of this year, the average amount of time that a Class A apartment in the U.S. sat vacant dipped to 25 days, an eight-month low and a significant recovery from 32 days in December 2023. The number of new lease applications per luxury tier unit also rose to a nine-month high in April, while the rate of signed renewals hit the strongest mark since August 2023, reflecting demand from both new and existing tenants. Despite these favorable trends, aggressive construction remains a major influence on vacancy and rents.  

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