Multifamily Pro+

Yardi Matrix forecasts 'hardy multifamily supply growth' for 2025

Despite a steep decrease in new multifamily construction activity, the under-construction pipeline remains elevated due to long development lead times.
Nov. 7, 2024
2 min read

Despite a steep decrease in new multifamily construction activity, the under-construction pipeline remains elevated due to long development lead times. Yardi® Matrix’s Q4 2024 Multifamily Supply Forecast update increased 8.1% for 2025 (508,089 units) and 6% for 2026 (371,509 units).

The annualized rate of new construction starts was approximated at 325,000 for 2024, which represents a 50% drop from the levels recorded in 2022 and 2023. Elevated completion times maintain a still-sizable under-construction pipeline. Consequently, completions in 2025 and 2026 will remain strong, anticipated to fall significantly in the second half of 2026 and 2027.

The under-construction pipeline from September 2023 to June 2024 was at or above 1.2 million units. While year-over-year the under-construction inventory dropped off the most in the Sun Belt, it increased in multiple markets in the Northeast and California.

The forecast does not anticipate new development to significantly rebound until 2026. Like last quarter, the Q4 update has new supply bottoming at 327,000 units in 2027, with a rebound taking place in 2028 and 2029 to around 2.25% of stock.

Review the Q4 2024 Multifamily Supply Forecast from Yardi Matrix.

About Yardi
Celebrating its 40-year anniversary in 2024, Yardi® develops industry-leading software for all types and sizes of real estate companies across the world. With over 9,500 employees, Yardi is working with our clients to drive significant innovation in the real estate industry. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.

Sign up for Building Design+Construction Newsletters