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Multifamily Construction Pipeline Increases 7.6%
Multifamily construction starts increased slightly in the third quarter of 2023, and should have a positive impact on future deliveries, according to the latest Multifamily Supply Forecast from Yardi Matrix.
Construction starts remained relatively robust in the first half of 2023, and the under-construction pipeline increased 7.6% in Q3. As a result, said Yardi Matrix, the Q4 2023 supply forecast update has increased forecast completions by 5.8% for 2024 and 6.2% for 2025.
For multifamily markets tracked by Yardi Matrix, there are currently 1,223,601 units in the under-construction pipeline. Of these units, 479,634 are currently in lease-up, roughly in line with the trailing six-month average of 483,000 units but 15.9% above year-ago levels. Most of these units will be completed this year or in the first half of 2024.
At the same time, the number of under-construction units not in lease-up continues to increase, Yardi Matrix said. Currently, there are 743,967 units, a 16.2% quarterly increase and a 35.3% increase from the year-ago period.
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