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Yardi Matrix sees increased 2025-27 multifamily supply completions

Pipeline spurs forecast update; new law’s funding, incentives could lift affordable housing

SANTA BARBARA, Calif., Aug. 12, 2025 – On the basis of a mid-year under-construction pipeline that exceeded expectations, Yardi® Matrix has increased its forecast of multifamily unit completions for 2025, 2026 and 2027 by 2.1%, 1.8% and 2.9%, respectively.

Multifamily building under construction

The under-construction pipeline ended Q2 2025 with more than 1 million units. While representing a 6.5% quarter-over-quarter decline, the figure supports an increase in forecast completions to about 550,000 units for 2025, 430,000 for 2026 and 360,500 for 2027.

The forecast also anticipates a modest reduction in starts for the second half of 2025 with a corresponding bottom in new supply in 2027. However, if starts remain at 2024 levels, “subsequent forecasts for 2027 will need to be revised higher,” the report says.

Yardi Matrix anticipates a 60% decline in market-rate apartment deliveries in 2026 compared to 2024 levels, nearly twice the drop expected for the affordable housing segment. Provisions of the One Big Beautiful Bill Act that increase federal funds for the Low-Income Housing Tax Credit program and reduce the tax-exempt bond financing threshold for credits under LIHTC could further enlarge the disparity.

Learn more about Yardi Matrix’s forecast for the under-construction pipeline, construction starts and more in the  Multifamily Supply Forecast Bulletin for Q3 2025.

Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, single-family rentals/ build to rent, affordable housing, student housing, self storage, office, industrial, retail and vacant land property types. Email [email protected], call (480) 663-1149 or visit yardimatrix.com to learn more.

About Yardi

Yardi® develops industry-leading software for all types and sizes of real estate companies across the world. With more than 10,000 employees, Yardi is working with our clients to drive significant innovation in the real estate industry. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.