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. Â
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
Multifamily Housing | Jan 15, 2024
Multifamily rent growth rate unchanged at 0.3%
The National Multifamily Report by Yardi Matrix highlights the highs and lows of the multifamily market in 2023. Despite strong demand, rent growth remained unchanged at 0.3 percent.
Adaptive Reuse | Jan 12, 2024
Office-to-residential conversions put pressure on curbside management and parking
With many office and commercial buildings being converted to residential use, two important issues—curbside management and parking—are sometimes not given their due attention. Cities need to assess how vehicle storage, bike and bus lanes, and drop-off zones in front of buildings may need to change because of office-to-residential conversions.
MFPRO+ News | Jan 12, 2024
As demand rises for EV chargers at multifamily housing properties, options and incentives multiply
As electric vehicle sales continue to increase, more renters are looking for apartments that offer charging options.
Sustainability | Jan 10, 2024
New passive house partnership allows lower cost financing for developers
The new partnership between PACE Equity and Phius allows commercial passive house projects to be automatically eligible for CIRRUS Low Carbon financing.
Apartments | Jan 9, 2024
Apartment developer survey indicates dramatic decrease in starts this year
Over 56 developers, operators, and investors across the country were surveyed in John Burns Research and Consulting's recently-launched Apartment Developer and Investor Survey.
MFPRO+ News | Jan 8, 2024
Canada turns to 1940s strategy to speed up housing construction
To address a severe housing shortage, Prime Minister Justin Trudeau’s administration has begun a housing construction strategy pioneered in the years after World War 2. The government aims to use a catalog of pre-approved home designs to reduce the cost and time to construct homes.
MFPRO+ Special Reports | Jan 4, 2024
Top 10 trends in multifamily rental housing
Demographic and economic shifts, along with work and lifestyle changes, have made apartment living preferable for a wider range of buyers and renters. These top 10 trends in multifamily housing come from BD+C's 2023 Multifamily Annual Report.
MFPRO+ News | Jan 2, 2024
New York City will slash regulations on housing projects
New York City Mayor Eric Adams is expected to cut red tape to make it easier and less costly to build housing projects in the city. Adams would exempt projects with fewer than 175 units in low-density residential areas and those with fewer than 250 units in commercial, manufacturing, and medium- and high-density residential areas from environmental review.Â
MFPRO+ News | Dec 22, 2023
Document offers guidance on heat pump deployment for multifamily housing
ICAST (International Center for Appropriate and Sustainable Technology) has released a resource guide to help multifamily owners and managers, policymakers, utilities, energy efficiency program implementers, and others advance the deployment of VHE heat pump HVAC and water heaters in multifamily housing.
Giants 400 | Dec 20, 2023
Top 100 Apartment and Condominium Construction Firms for 2023
Clark Group, Suffolk Construction, Summit Contracting Group, and McShane Companies top BD+C's ranking of the nation's largest apartment building and condominium general contractors and construction management (CM) firms for 2023, as reported in Building Design+Construction's 2023 Giants 400 Report.
