Multifamily Market Remains in Balance

  • The U.S. multifamily market remained healthy in Q1, with a favorable vacancy rate and solid rent growth.
  • The construction pipeline—starts and units under construction—remained very active, but completions in Q1 fell to the lowest level in four years.
  • Net absorption moderated in Q1, but the trailing four-quarter total reached 285,800 units—higher than the 266,700 units delivered.
  • The overall vacancy rate of 4.6% in Q1 was down 20 basis points (bps) year-over-year.
  • Rent growth climbed to an annual rate of 3%, up from 2.1% a year ago.
  • Multifamily acquisitions totaled $36.4 billion in Q1, up 1.3% year-over-year. The trailing four-quarter total of $175 billion was up 8.1% year-over-year.