Multifamily Well Positioned to Face Economic Headwinds

Multifamily Momentum: ​Strong Demand, Tight Supply, and Long-Term Resilience​​

Multifamily Absorption Surges Despite New Supply​

• Over 145,000 units absorbed in Q1, outpacing 116,000 new deliveries​

• Vacancy rate declined to 5.0%, lowest since late 2022​

• Strong demand driven by job growth, favorable demographics, and affordability gap​

Affordability Gap and Construction Slowdown Support Rents​

• Median home payments near $3,163/month vs. $1,827 for average rent​

• Multifamily lease renewal rate at 55%, above the long-term average of 53%​

• Single-family and multifamily construction both slowing due to costs and policy​

Short-Term Risks May Delay, Not Derail, Long-Term Demand​

• Consumer sentiment dropped to 50.8 in April, may weigh on near-term household formation​

• Long-term demand outlook remains strong despite near-term volatility​

*Through 1Q​
Sources: Marcus & Millichap Research Services, RealPage, Inc.​

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