Yardi Matrix supply forecast: Q2 2025 multifamily report

A new Yardi Matrix bulletin projects that approximately 1.3 million U.S. housing units will be delivered over the next three years, an increase of 2% over the previous quarter’s guidance.

Written by Joel Nelson

05 / 05 / 25

2 min read

Two commercial buildings along a skyline

A new Yardi Matrix supply forecast projects a slight increase in U.S. property completions in 2025-27 than previously forecast. Completions include market rate, affordable, senior housing, single family and multifamily property types.

Matrix projects approximately 1.3 million units to be delivered in the three-year span, 2% more than last quarter’s forecast. This is due to a slightly larger-than-expected under-construction pipeline at the close of Q1 2025.

However, the overall under-construction pipeline has been in decline for 12 consecutive months. Completions for all property types peaked in 2024 and are forecast to decline through 2027. Market and partially affordable properties are predicted to drop by 37.6% in 2026 compared to 2024’s peak, with affordable and SFR properties declining by 24.3% and 26.7%, respectively, compared to their 2024 peak.

The relative differences in forecasted new supply underscore a longer-term trend, the bulletin reports. “Market and partially affordable properties will comprise a smaller share of the overall multifamily product mix. In 2019, these property types represented 84.2% of all units delivered. By 2026, their share is forecast to decline to 75.1%.

Long-term forecasting is complicated by uncertainty over national tariff policy. While higher tariff rates would increase import prices and construction costs and possibly slow economic growth, such an environment could prompt an easing of monetary policy and a tailwind for new multifamily development.

Read the full Matrix supply forecast.

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.

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