Q1 2025 Multifamily Market Report

MULTIFAMILY MARKET OVERVIEW

Absorption rose slightly over last quarter with 12,282 units absorbed. Vacancy ticked up one basis point to 7.3%, through this metric is expected to fall with new supply falling 4.5% to just 14,761 under construction, the lowest supply in over 10 years. Rents are starting to increase slightly. Sales volume started rebounding towards the end of last year in lockstep with interest rates beginning to trend downwards. Sales volume and price appreciation is expected to pick up steam as interest rates continue their gradual decline and rents growth heats up due to a lack of new supply.

MARKET INDICATORS Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024
↑  12 Mo. Net Absorption (Units) 12,282 11,438 12,407 9,521 7,128
↑  Vacancy Rate (%) 7.3% 7.2% 6.9% 6.8% 7.0%
↑  Asking Rent / Unit ($) $2,073 $2,039 $2,043 $2,042 $1,997
↑  Sale Price / Unit $301,541 $292,141 $364,114 $287,829 $222,145
↑  Cap Rate (%) 5.70% 5.60% 4.49% 5.50% 5.30%
↓  Under Construction (Units) 14,761 15,426 17,628 20,978 24,223
↑  Inventory (Units) 399,504 395,226 393,143 387,960 383,929