Roughly half the number of multifamily units are coming out of the ground compared to the peak in 2023. However, the lower volume of supply ahead is still fairly substantial when viewed relative to likely household formation and underlying demand.
The nation’s young adult population is growing more slowly than it was during the last half of the 2010s, and the flow of new immigrants into the housing demand pool has been disrupted. Near-term job creation is generally expected to reach only half the total of 2.4 million positions added annually from 2015 to 2019.
Another factor to consider is whether construction activity for rental properties is going to continue to trend downward. Permit volumes have flattened, and that suggests that we’ve likely hit the bottom on new construction starts, but the nation’s biggest apartment builders already have land secured and ready for future building. When rent growth improves, they can begin ramping up construction quickly.
Source: Greg Willett
Multifamily Market News 