According to CBRE, the vacancy rate in the U.S. multifamily market is now stabilizing after two consecutive quarters of increases. Experts predict that this trend will continue and vacancies will decrease in the upcoming months.
In Q2 of 2024, average monthly rents increased by 0.3% compared to last year, reaching $2,186. CBRE’s latest research shows that rent growth in the multifamily sector is expected to accelerate due to a slowdown in construction completions and positive net absorption.
The investment volume for multifamily properties also saw a significant increase of 82% quarter-over-quarter at $38.3 billion during Q2. This sector accounted for the largest share (43%) of commercial real estate investment volume during this time period.
Kelli Carhart, leader of CBRE’s Multifamily Capital Markets division stated that market sentiment has greatly improved as many investors believe values have reached their lowest point. She also mentioned strong fundamentals such as absorption rates and a decreasing delivery pipeline are boosting investor confidence which should result in healthy transaction volumes throughout the rest of this year.
