Q4 2025 U.S. multifamily market overview

Average monthly mortgage payments are 36.7% higher than the average multifamily rents across the U.S. — slightly down from all-time highs seen in Q4 2024. New construction delivery activity dropped by 24.1% over the last 12 months. Overall occupancy and effective rents remained relatively unchanged from 2024, as deliveries stayed elevated in 2025. California markets comprise 60% of markets seeing above-average rent growth and below-average new construction starts.

87.7%

absorption rate for multfamily deliveries in 2025

The gap between deliveries and units absorbed narrowed to its lowest level since 2021.

-20%

decline in new deliveries over the next 12 months

New construction delivery activity dropped by 24.1% between 2024 and 2025.

+5.6%

increase in investment sales activity in 2025 compared to 2024

Dallas-Fort Worth and Atlanta acted as the top markets for multifamily investment activity in 2025. These two markets also comprise almost 20% of loan maturities among top multifamily markets over the next 24 months.

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