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 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…
Despite some month-over-month volatility to begin the year, 2025 has gotten off to a strong start for the multifamily industry. The expected slowdown in new supply has recently started to materialize and apartment demand has continued last year’s positive momentum – and then some. The increased supply and demand balance has been beneficial for both…
The last three months have been encouraging for the multifamily industry and provide some early cause for cautious optimism looking forward.
This year, the number of new units is expected to decline from its 2024 peak but will still be substantial relative to historic norms.
