CBRE: U.S. Multifamily Rebound Continues in Q1

(Image courtesy of CBRE; Breakout image courtesy of SevenStorm JUHASZIMRUS/pexels.com)

CBRE, Dallas, found the overall multifamily vacancy rate fell to 4.8% in Q1, as renter demand continued to outpace new deliveries.

The long-term average is 5% and last quarter’s drop was the biggest Q1 decrease on record.

Additionally, average monthly rent increased by 0.9% in the quarter year-over-year, and is expected to grow at a faster pace as occupancy continues to rise. It currently sits at an average of $2,184.

Net absorption–which measures the change in the number of occupied units–increased by 77% from Q1 2024, to hit 100,600. That’s the highest Q1 net absorption since 2000, CBRE reported, and the fourth consecutive quarter in which demand passed new construction completions.

Construction completions fell to 71,000 in Q1, compared with 120,000 in Q4 2024. Fewer new deliveries are expected over the next few quarters. Quarterly demand surpassed the number of newly completed units by 42%.

And, multifamily investment volume was up by 33% year-over-year to $28.8 billion. That’s the highest Q1 since 2022.

“Multifamily fundamentals continue to strengthen due to strong renter demand and a diminishing construction pipeline. We expect the gains to continue this year and accelerate in 2026,” said Kelli Carhart, Head of Multifamily Capital Markets for CBRE. “Economic uncertainty will continue to impact consumer sentiment and cause capital markets volatility, but the multifamily sector is poised to remain resilient.”