Construction pipeline supports 1.3 million projected deliveries from 2025-27
SANTA BARBARA, CALIF., April 23, 2025 – A new research bulletin from Yardi® Matrix forecasts a slight increase in U.S. multifamily rental housing completions for 2025-27 from the previous quarter’s forecast.
A marginally larger than expected construction pipeline at the end of Q1 2025 prompted Matrix analysts to revise by 2% the estimated new inventory available for market rate, partially and fully affordable, senior housing and single-family multifamily property types in Q2.
While the current national under-construction pipeline has contracted 13.3% year-over-year, it still contains more than 1.1 million units. Deliveries in 2025 are projected to total around 536,000 units, the second-highest level of new supply since the Great Financial Crisis, with approximately 772,000 following in 2026 and 2027.
The Q2 forecast comes against a backdrop of a moderating construction starts. The total in 2024 was 36.4% lower than 2023’s level and 40.7% lower than that seen in 2022. While this decline will lower new supply in 2026, “elevated completion times and a still-large under-construction inventory imply that supply will not completely bottom until 2027,” according to the bulletin.
Although the current forecast projects new multifamily development in 2025 will follow roughly the same pace as that seen in 2024, the potential impact of federal trade policies on GDP growth, interest rates, development costs and other economic factors lends a significant degree of uncertainty.
Read the Yardi Matrix research bulletin for more insights into Q2 2025 multifamily supply.
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