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U.S. Multifamily Absorption Posts Strongest Q1 Since 2000
Positive net absorption of multifamily units totaled 100,600 units in the first quarter of 2025 for the strongest Q1 performance since 2000 and more than triple the pre-pandemic Q1 average, CBRE reported. With demand having surpassed new construction completions for the fourth consecutive quarter, the overall multifamily vacancy rate fell by 20 basis points in Q1 to 4.8%, below its long-term average of 5.0%.
Multifamily investment volume increased 33% year-over-year in Q1 to $28.8 billion. The sector accounted for the largest share of the quarter’s total commercial real estate investment volume (33%).
“Multifamily fundamentals continue to strengthen due to strong renter demand and a diminishing construction pipeline,” said Kelli Carhart, head of multifamily capital markets for CBRE. “We expect the gains to continue this year and accelerate in 2026. Economic uncertainty will continue to impact consumer sentiment and cause capital markets volatility, but the multifamily sector is poised to remain resilient.”
- ◦Sale/Acquisition
- ◦Economy
