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Special Report

Multifamily Construction Special Report

May 2024

Historically High Development Cycle
Entering its Latter Stage

Elevated new supply pressure widely apparent but set to taper. A large wave of apartment deliveries has weakened property performance fundamentals in select markets across the U.S. Nearly 480,000 units were completed across the country over the past four quarters, outpacing robust absorption to lift national vacancy 70 basis points in that span to 5.9 percent in March, while rent growth moderated to 1.2 percent. However, the size of incoming stock is now shrinking, down about 15 percent in March 2024 from a year earlier. Looking forward to late 2025 and on to 2026, the stage is set for retreating vacancies and rebounding rent growth, assuming the state of the economy retains enough health to allow household formation and housing demand to remain substantial. 

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