Multifamily Demand Soars in Q2

  • The multifamily market gained considerable strength in Q2 with near-record quarterly absorption of 179,400 units.
  • The overall vacancy rate fell by 70 basis points (bps) to a healthy 4.0% in Q2 and average rent rose by 3.5% from Q1—the second quarterly increase since Q1 2020.
  • Construction levels remained high with 65,600 units added in Q2, bringing the year-to-date total to 117,900. Net absorption of 197,300 units in H1 easily outpaced new supply.
  • Multifamily investment volume increased by 34% quarter-over-quarter in Q2 to $52.7 billion.