Robust Q2 Demand Strengthens Market

  • Q2 net absorption of 160,900 units—the highest quarterly demand total in at least 15 years—lifted the trailing four-quarter total to just over 314,000 units, leading to favorable vacancy and rent growth fundamentals.
  • Vacancy fell to 4.0% in Q2, down by half a percentage point from the prior year.
  • Average monthly rent rose 2.9% year-over-year to $1,685, up from the 2.1% growth of a year ago.
  • Multifamily deliveries were high in Q2 at 71,700 units, but the trailing four-quarter total of 255,700 units was down 10.2% from a year ago.
  • The construction pipeline—starts and units under construction—remained elevated, pointing to sustained high levels of deliveries through at least 2020.
  • Multifamily acquisitions totaled $43.2 billion in Q2, up 18.5% year-over-year. The trailing four-quarter total of $183 billion was up 13.3% year-over-year.
  • Las Vegas and Phoenix had the highest rent growth in Q2 of more than 8% year-over-year. Minneapolis had the lowest Q2 vacancy rate of 2.8%.