The multifamily housing supply could increase by up to nearly 7% by the end of 2023, states the latest Multifamily Supply Forecast from Yardi Matrix.
The Q3 2023 supply forecast update has increased forecast completions 6.9% for 2023 and 6.5% for 2024. The near-term forecast was increased this month as the under-construction pipeline continues to expand, and 2023 construction starts to date have not exhibited any signs of a slowdown.
Yardi Matrix's Multifamily Supply Forecast
For multifamily markets tracked on or before January 2020, there are currently just over 1.1 million units under construction. Of these units, 429,626 are currently in lease-up, roughly in line with the trailing 12-month average of 421,000 units. Most of these units will complete in 2023 or the first half of 2024.
As of this report’s release, Yardi Matrix is tracking 688,420 under-construction units that are not in lease-up. This represents a 36.9% year-over-year increase and a 96.7% increase over pre-pandemic levels.
The longer-term supply forecast accounts for depressing completions in 2025 and 2026 relative to current levels, with a rebound taking hold in 2027. Forecast completions for 2026 have been reduced by 5% to 401,065, while forecast 2027 and 2028 completions have been reduced to 417,378 and 426,722 units, respectively.
Review the latest Multifamily Supply Forecast here.
Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, student housing, industrial, office and self storage property types. Email matrix@yardi.com, call 480-663-1149 or visit yardimatrix.com to learn more.
Related Stories
MFPRO+ New Projects | Apr 16, 2024
Marvel-designed Gowanus Green will offer 955 affordable rental units in Brooklyn
The community consists of approximately 955 units of 100% affordable housing, 28,000 sf of neighborhood service retail and community space, a site for a new public school, and a new 1.5-acre public park.
MFPRO+ News | Apr 12, 2024
Legal cannabis has cities grappling with odor complaints
Relaxed pot laws have led to a backlash of complaints linked to the odor emitted from smoking and vaping. To date, 24 states have legalized or decriminalized marijuana and several others have made it available for medicinal use.
MFPRO+ News | Apr 12, 2024
Greystar becomes top apartment owner, manager, and developer in 2024
One firm set records for this year’s National Multifamily Housing Council Top 50 roundup of multifamily firms. Greystar now sits at number one in the NMHC’s lists for top apartment owner, manager, and developer in 2024.
MFPRO+ News | Apr 10, 2024
5 key design trends shaping tomorrow’s rental apartments
The multifamily landscape is ever-evolving as changing demographics, health concerns, and work patterns shape what tenants are looking for in their next home.
Mixed-Use | Apr 9, 2024
A surging master-planned community in Utah gets its own entertainment district
Since its construction began two decades ago, Daybreak, the 4,100-acre master-planned community in South Jordan, Utah, has been a catalyst and model for regional growth. The latest addition is a 200-acre mixed-use entertainment district that will serve as a walkable and bikeable neighborhood within the community, anchored by a minor-league baseball park and a cinema/entertainment complex.
Multifamily Housing | Apr 9, 2024
March reports record gains in multifamily rent growth in 20 months
Asking rents for multifamily units increased $8 during the month to $1,721; year-over-year growth grew 30 basis points to 0.9 percent—a normal seasonal growth pattern according to Yardi Matrix.
MFPRO+ New Projects | Apr 8, 2024
Construction complete on The Station Apartments in Minneapolis
Big-D Midwest recently completed construction on The Station Apartments at Malcolm Yards, an innovative and unique housing property in Minneapolis.
Mixed-Use | Apr 4, 2024
Sustainable mixed-use districts: Crafting urban communities
As a part of the revitalization of a Seattle neighborhood, Graphite Design Group designed a sustainable mixed-use community that exemplifies resource conversation, transportation synergies, and long-term flexibility.
Architects | Apr 2, 2024
AE Works announces strategic acquisition of WTW Architects
AE Works, an award-winning building design and consulting firm is excited to announce that WTW Architects, a national leader in higher education design, has joined the firm.
Standards | Apr 1, 2024
New technical bulletin covers window opening control devices
A new technical bulletin clarifies the definition of a window opening control device (WOCD) to promote greater understanding of the role of WOCDs and provide an understanding of a WOCD’s function.
