Supply Forecast

The multifamily housing supply could increase to nearly seven percent by the end of 2023, states the latest Multifamily Supply Forecast from Yardi Matrix.5 percent for 2024.

The multifamily housing supply could increase to nearly seven percent by the end of 2023, states the latest Multifamily Supply Forecast from Yardi Matrix.  

The Q3 2023 supply forecast update has increased forecast completions 6.9 percent for 2023 and 6.5 percent for 2024. The near-term forecast was increased this month as the under-construction pipeline continues to expand, and 2023 construction starts to date have not exhibited any signs of a slowdown.

For multifamily markets tracked on or before January 2020, there are currently just over 1.1M units under construction. Of these units, 429,626 are currently in lease-up, roughly in line with the trailing 12-month average of 421,000 units. Most of these units will complete in 2023 or the first half of 2024.

As of this report’s release, Yardi Matrix is tracking 688,420 under-construction units that are not in lease-up. This represents a 36.9 percent year-over-year increase and a 96.7 percent increase over pre-pandemic levels.

The longer-term supply forecast accounts for depressing completions in 2025 and 2026 relative to current levels, with a rebound taking hold in 2027. Forecast completions for 2026 have been reduced by five percent to 401,065, while forecast 2027 and 2028 completions have been reduced to 417,378 and 426,722 units, respectively.

Review the latest Multifamily Supply Forecast here.

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, student housing, industrial, office and self storage property types. Email [email protected], call (480) 663-1149 or visit yardimatrix.com to learn more.

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AUTHOR

Leah Etling is the founding editor of the Balance Sheet and a 12-year Yardi employee who also oversees press releases and social media. An award winning journalist, she holds a master's degree from UC Berkeley and is a native of Santa Barbara County, Yardi's home.

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