Q3 2024 U.S. multifamily market overview
Top U.S. markets continue to see an uptick in multifamily demand with absorption levels hovering just 30% below 2021 levels, when demand was at an all-time high. Despite the uptick in demand, elevated supply has limited rent growth with effective rents hovering at 2022 levels. As mortgage rates remain elevated, renters are continuing to rent, but the number of occupants per housing unit has declined across every major market, as people seek to live on their own or with a fewer number of roommates.
240,000
Units absorbed 2024 year to date
240,000 units absorbed so far in 2024, the highest rates seen since multifamily demand peaked in 2021 after the pandemic.
39.3%
of major multifamily markets have seen rents decline last 12 months
39.3% of major multifamily markets have seen rents decline last 12 months, however, major markets on the east and west costs are seeing effective rents increase again, with Silicon Valley, Washington, DC, and Boston leading at +3.0% growth over the last 12 months.
49.2%
Increase in multifamily sales in Q3 2024 vs. Q1 2024
49.2% increase in multifamily sales in Q3 2024 vs. Q1 2024 following the Fed’s recent decision to place downward pressure on interest rates help spur sales activity in Q3 2024. Multifamily continues to remain the favored product, accounting for 37.3% of total investment activity since Q2 2023 and 38.6% of total sales volume in Q3 2024.
For more information, contact:
Subscribe to receive national multifamily market reports and insights
Snackable multifamily market insights
-
New Jersey industrial average asking rents have dropped by 6.7% YTD -
Average under construction building size has fallen 25.3% over the past five years across the Philadelphia industrial market -
From speculative to secured: the rise of build-to-suit projects in Chicago's industrial sector -
Houston’s industrial delivery space gap is expected to drive down vacancy rates in 2025
