Q1 2024 U.S. multifamily market overview

Top U.S. markets have seen the multifamily inventory increase by an annual average of 3.4% since 2020. Development activity is expected to peak in 2024, with almost 500,000 new units expected to deliver across the top U.S. multifamily markets. Though overall rent growth has been minimal, absorption reached its highest level in Q1 2024 since 2021, when demand last peaked.

of the top U.S. markets saw for-sale housing pricing increase in last 12 months increase by 1%, while only 36% saw rents increase by over 1%

Elevated pricing within the for-sale market is helping to retain demand within the multifamily market as stabilized occupancy levels have continued to increase since 2020.


of the top U.S. markets saw effective rents decline over the last 12 months

Effective rents among class A assets have declined by 0.7%, compared to +0.1% for class B and +1.9% for class C.


of dry powder is targeting multifamily buildings, the highest of any asset class

Meanwhile the average cap rate continues to hover at 5.2% while sales volumes have dropped to their lowest levels since Q2 2020.

For more information, contact:

  • Regional Manager, Insight
  • Research

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