Last year brought significant positive developments for multifamily performance. In recent months, new supply has continued to trend downward and national net absorption has remained robust. However, early cracks have begun to appear in the broader picture of a multi-year recovery. These cracks do not necessarily signal a reversal of the gains made over the…
The new construction pipeline has been a defining force in multifamily performance in recent years. Annual new supply has remained historically elevated since 2020, peaking at nearly 600,000 units in 2024. Early last year, it appeared that deliveries would slow meaningfully in 2026 – and even more so in 2027. However, as 2025 progressed, that…
2025 marked an inflection point for the U.S. multifamily industry, but not a clean return to equilibrium. After the extreme volatility of the immediate post-pandemic period, apartment demand had been rebuilding steadily in 2023 and 2024 before surging in 2025. At the same time, several key fundamentals finally began to realign. For the first time…
With only the final few weeks of the year remaining, focus has turned to 2026. A fuller analysis of 2025 multifamily performance will be the topic of this newsletter next month. However, this year saw vast improvement in the supply and demand relationship. This was due partially to a decline in new supply but was…
The multifamily market enters late 2025 at a clear turning point. Robust leasing activity lifted average occupancy for the first time since 2021, giving rent growth a modest but welcome boost. Yet a sharp slowdown at the start of the fourth quarter has cast doubt on whether 2025’s gains will ultimately outpace 2024. All numbers…
The impact of two developments for the multifamily industry this year has been widely felt. One has been the beginning of a slowdown in new supply after its 2024 peak. That slowdown was anticipated, and its scale has largely played out to expectations. The other is a rise in apartment demand. Though further improvement after…
A major story this year for the multifamily industry has been the considerable increase in net absorption. The industry saw year-over-year improvement in 2023 and in 2024, but the multi-year uptrend has gained steam this year. One interesting aspect has been what has occurred at the price class level. All numbers will refer to conventional…
The most prominent driver of multifamily performance over the last few years has been new supply. The sustained deluge of new units that entered the market across the country in recent years was unlike anything seen since the peak years of the 1970s and 1980s. This surge in supply was paired with inconsistent apartment demand…
The second half of 2025 has arrived and there has been plenty of action in the multifamily industry so far this year. In addition to checking in on the various performance metrics at mid-year, now makes for an opportune time to return to the January newsletter. That month we laid out expectations for 2025. Now,…
