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Apartment Completions Forecast Bumped Up for 2025, 2026
Although multifamily construction starts are now 40% below the peak seen in 2022, Yardi Matrix has increased its forecast for completions this year and next. Compared to the previous quarter’s report, the first-quarter 2025 forecast has bumped up projected 2025 completions by 3.3% to roughly 525,000 units, with a 2026 increase of 11.5% to 414,000 units.
“The number of units under construction tracked by Yardi Matrix is declining,” according to Yardi Matrix. However, the decrease is starting from a high level and is “falling at a much slower rate than its expansion
from 2021 through 2023.” For 2025, the still-large under-construction pipeline will deliver the second-highest amount of annual new supply since the 2008 financial crisis, trailing only 2024’s record volume.
Although construction starts moderated significantly in 2024, leading to a slowdown in new supply for 2026. “due to continued elevated construction completion times, some amount of the current under-construction inventory will not be completed until 2026,” the report states. As a result, new supply will not fully bottom until 2027.
- ◦Development
