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Multifamily Vacancies Stabilize After Two Quarterly Increases
The vacancy rate in the U.S. multifamily market is stabilizing after two years of quarterly increases, CBRE said Friday. Expectations call for declining vacancies in the coming months.
Average monthly rents in the second quarter of 2024 edged up 0.3% from the year-ago period, reaching $2,186. “Rent growth in the U.S. multifamily sector is projected to accelerate as fewer new units come on the market owing to a slowdown in construction completions and positive net absorption continues,” according to CBRE’s latest research.
Multifamily investment volume in Q2 increased by 82% quarter-over-quarter to $38.3 billion, with the sector accounting for the quarter’s largest share of commercial real estate investment volume at 43%.
“Market sentiment has improved significantly, as many investors believe that values have bottomed,” said Kelli Carhart, leader of multifamily capital markets for CBRE. “Investor conviction remains strong, buoyed by stabilizing fundamentals and strong absorption and a decreasing delivery pipeline. We expect transaction volume will remain healthy throughout the balance of the year.”
- ◦Lease
- ◦Sale/Acquisition
- ◦Development
