National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
U.S. Multifamily Fundamentals Continue to Strengthen
U.S. multifamily is rebounding strongly, driven by declining vacancy rates and robust absorption, CBRE reported. Positive net absorption reached 183,600 units in the fourth quarter of 2024, the strongest Q4 performance on record and 12 times more than the pre-pandemic Q4 average. This marks the third consecutive quarter where demand surpassed new completions, further narrowing the annual completions-over-demand gap.
CBRE noted that healthy renter demand outpaced new deliveries in Q4 2024, lowering the overall multifamily vacancy rate to 4.9%, below the long-term average of 5.0%.
Average monthly rents increased 0.5% year-over-year in Q4 2024, reaching $2,176. With construction completions slowing from last year’s record pace and strong absorption persisting, rent growth is expected to accelerate in the coming months.
The recovery in fundamentals translated into investor confidence. A total of $43.4 billion was deployed into the multifamily sector in Q4 2024, a 59% increase year-over-year.
“The strong performance of the multifamily market reflects significant demand for housing and signals the continued strengthening of fundamentals,” said Kelli Carhart, leader of multifamily capital markets for CBRE. “We expect to see more positive gains throughout 2025 and then accelerating in 2026, fueling increased multifamily investment activity.”
- ◦Lease
- ◦Sale/Acquisition
