2024 Multifamily Market Outlook and Trends

This technical report presents an analysis of the multifamily market fundamentals as of mid-2024, focusing on vacancy rates and rent growth. It outlines that the multifamily market has shown improvement in the first half of 2024, driven by increased demand despite a significant influx of new supply. The national vacancy rate is projected to rise due to over one million new multifamily units entering the market, which is expected to exert pressure on rent growth. The report details that rent growth was estimated at 1.3% for the first half of 2024, with expectations for a decline in the second half, stabilizing between 1.0% and 1.5%. Additionally, it discusses the rising trend of concessions being offered by property owners as a response to market conditions. The report also highlights demographic trends favoring multifamily demand, particularly among the 20-34 age group, while noting the ongoing challenges posed by job growth disparities across different metropolitan areas.