The U.S. multifamily market is showing signs of recovery as the vacancy rate fell in the third quarter for the first time in more than two years and renter demand outpaced record new supply deliveries, according to CBRE’s latest research.
The multifamily vacancy rate dropped 0.2% quarter-over-quarter to 5.3%, reflecting a diminishing supply pipeline and strong renter demand. These factors are expected to push vacancy down to its long-run average of 5.0% in coming quarters.
Positive net absorption, which measures the change in the number of occupied units, of 153,300 units was one of the strongest third quarters since 1985. Quarterly demand surpassed new completions for the second consecutive quarter, further shrinking the completions-over-demand gap on an annual basis.
