Q1 2025 U.S. multifamily market overview
Multifamily demand continued its strong performance through Q1 2025, as absorption for major U.S. markets is on pace to match 2024’s record breaking totals. Construction activity is expected to drop significantly by 2026, with two-thirds of assets in development set to deliver by the end of the year. Rental rate growth has risen by just 1.7% since 2023; however, increased demand coupled with a slowdown in construction activity are expected to place upward pressure on occupancy and rental rates.
72,000 units
Absorption
72,000 units were absorbed in Q1 2025, which is 25.2% of 2024 totals, putting multifamily demand on pace to match last year's record-high rates.
66.4%
Deliveries
66.4% of multifamily assets under construction are projected to deliver in 2025.
+9.7%
Increase in investment sales activity
Compared to Q1 2024, multifamily investment sales activity rose 9.7% in Q1 2025.
36.1%
Share of total U.S. investment activity
36.1% of total investment activity in the U.S. was related to multifamily sales in Q1 2025, proving multifamily remains the favored product and is continuously attracting a more diverse buyer pool.
For more information, contact:
- U.S. Multifamily & Client Data Solutions Lead
- Research
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Snackable multifamily market insights
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