Executive Summary

  • The multifamily market set a new quarterly absorption record of 251,500 units in Q3.
  • The overall vacancy rate fell by 1.2 percentage points quarter-over-quarter and 1.5 points year-over-year to a record-low 2.9%, while average net effective rent increased by 6.2% quarter-over-quarter and 8.4% year-over-year.
  • New construction deliveries of 68,800 units in Q3 brought the year-to-date total to 190,000. Record net absorption of 450,100 units so far this year has easily outpaced new supply.
  • Multifamily investment volume increased by 31% quarter-over-quarter in Q3 to $78.7 billion. With investment volume totaling nearly $179 billion year-to-date, the market is on track to well exceed 2019’s record total of $193 billion.