After the manner in which multifamily fared during the pandemic and immediately after – with record demand – it was bound for a correction. Absorption hit a lull of 114,000 units in 2022, the weakest since 2011, but it has already doubled the annual total from 2022, supporting a positive outlook for a strong multifamily market overall.
Most certainly, macroeconomic and demographic factors have contributed to the resurgent demand for multifamily units. The single-family home market is seeing sharply higher mortgage rates, buoyant home prices, and higher costs of upkeep (including taxes and insurance).
That said, Cushman & Wakefield is keeping an eye on new deliveries, as the 350,000 units delivered last year was the highest annual total on record, and 837,000 units currently under construction are expected to be completed over the next several years. This data trend indicates we are near the peak, with new supply expected to crest in 2024.
Read more of Cushman & Wakefield’s macro multifamily outlook here.