Demand Information

A new report by Yardi Matrix indicates that multifamily deliveries might outpace demand in some key U.S. housing markets.

Matrix conducted a study to determine which areas might be at risk of oversupply or undersupply over the next five years. The research revealed that deliveries in 2016 and 2017 helped compensate for the construction shortage in the wake of the Great Recession.

“Most of the metros that are at short-term risk of oversupply have strong economies and healthy multifamily demand, so units coming online should be absorbed by growing populations,” the report concludes.

Markets and submarkets with outsize development activity, however, “can expect volatility” that will give rise to higher vacancy rates and stagnant rent growth. Achieving market equilibrium going forward will require developers to “intelligently calibrate the amount and location of new projects” to accommodate finite demand.

Yardi Matrix identified Denver, Seattle, Dallas, Phoenix, Miami and Charlotte, N.C., as key markets at risk of oversupply over the next five years. Demand is projected to exceed supply of apartments for rent in San Diego, Los Angeles, California’s Inland Empire, Houston, New York and Sacramento, Calif.

Read “U.S. Multifamily Supply and Demand Forecasts by Metro” to learn more about homeownership, population shifts, social trends and other factors affecting the multifamily market.

SHARE POST

Facebook LinkedIN

AUTHOR

Joel Nelson, senior marketing writer, joined Yardi in 2007. His byline has appeared in New York Real Estate Journal, Canadian Property Management and Los Angeles Lawyer, among others. He has won multiple awards from major professional organizations including the International Association of Business Communicators and Public Communicators of Los Angeles. Joel earned a bachelor’s degree from Pomona College.

Recent articles

Rob Teel and Anant Yardi speaking at YASC, Yardi’s annual user conference for property management professionals.

Guide to YASC for PHA and Affordable Housing

Learn how our flagship event, YASC, benefits public and affordable housing professionals. See what’s new in 2026 and why YASC is worth attending.

08 / 20 / 26

Introducing WorkCafe for Buildings

Introducing WorkCafe for Buildings: The tenant experience platform that runs on your operations data

WorkCafe for Buildings is a tenant experience platform for commercial buildings built natively on Yardi Voyager to put bookings, billing and operations in one place.

Yardi Virtuoso Enterprise logo: 5 benefits of a connected maintenance system

5 benefits of a connected maintenance system

When maintenance, leasing and accounting run on one system, the handoffs disappear. Here are five ways that change your operation.

08 / 18 / 26