Q3 2024 Multifamily Market Report
MULTIFAMILY MARKET OVERVIEW
Absorption is up 30% between Q2 and Q3 2024. Vacancy is holding steady, while up a touch from Q2, still lower than the previous three quarters. Asking rents are even with Q2, and up 4.2% from a year ago. The construction pipeline has fallen 19% with 17,628 units under construction, compared with just over 24K over the previous four quarters. New development starts are down 40% from this time last year, and off about 60% from the market peak. Sales volume is still down. Now with interest rates slowly trending upward and a lack of new supply stimulating rent growth in the coming quarters, values are expected to recover.
| MARKET INDICATORS | Q3 2024 | Q2 2024 | Q1 2024 | Q4 2023 | Q3 2023 |
|---|---|---|---|---|---|
| ↑ 12 Mo. Net Absorption (Units) | 9,521 | 9,521 | 7,128 | 6,269 | 5,464 |
| ↑ Vacancy Rate (%) | 6.9%% | 6.8% | 7.0% | 7.0% | 6.8% |
| ↓ Asking Rent / Unit ($) | $2,043 | $2,042 | $1,997 | $2,000 | $1,960 |
| ↑ Sale Price / Unit | $364,114 | $287,829 | $222,145 | $284,080 | $297,266 |
| ↓ Cap Rate (%) | 4.89% | 5.50% | 5.30% | 5.30% | 5.10% |
| ↓ Under Construction (Units) | 17,628 | 20,978 | 24,223 | 25,360 | 25,735 |
| ↑ Inventory (Units) | 393,143 | 387,960 | 383,929 | 384,139 | 381,156 |