The multifamily market may be reaching a turning point, with year-to-date absorption up 75% compared to the first half of 2023. Cushman & Wakefield’s Q2 2024 report shows a 10-basis-point drop in vacancies and 138,000 units absorbed, with inoccupancies falling in 90 markets, especially in the Midwest and Sunbelt. The national vacancy rate rose to 8.6% year-over-year but is expected to decrease in the next 12 months. Net absorption for the quarter was 138,111 units and is projected to rise. Market rent increased to $1,849 but is likely to fall, with rent growth slipping to 1.7%. Construction starts fell nearly 60% in early 2024 compared to 2023, though 695,000 units are still under construction. Excess supply has slowed rent growth to 1.7%, below pre-pandemic and historical averages. However, 47 markets with limited new supply saw rent growth above 3%.
Source: https://www.orionprop.com/topfive/multifamily-nears-inflection-point/
