Demand Information

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.

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

See everything, decide faster: Senior living in the age of connected data

How 5 teams switched to senior living reporting dashboards

Hours spent on spreadsheets and conflicting data slow decisions. See how five senior living operators replaced manual reports with real-time dashboards powered by Yardi Senior IQ. Download the ebook.

11 / 03 / 26

Affordable housing and PHA professionals learning at a training event

Yardi resources that help build affordable housing skills

Yardi clients have access to exclusive resources that further a career in the industry by building affordable housing skills through training, events and on the job learning opportunities.

11 / 03 / 26

YASC San Diego 2026 spotlights Virtuoso & AI Agents

YASC San Diego 2026, the biggest-ever Yardi Advanced Solutions Conference, brought together roughly 6,500 attendees from about 1,200 real estate organizations and Yardi experts for three days to exchange ideas and explore products.