**Multifamily Deliveries to Hit Record Highs in 2025, Despite Construction Decline**
Multifamily property deliveries are expected to reach near-record levels in 2025, according to Avison Young’s Q2 2025 U.S. Multifamily Market Report. This surge comes even as new construction starts have declined an average of 10.4% over the past four quarters. Looking ahead, the report projects a sharp drop in new supply, forecasting a 57.3% decrease in 2026.
In contrast to the slowdown in new developments, multifamily absorption is showing strong momentum. Through the first half of 2025, absorption reached 51.5% of total 2024 levels. This demand comes amid a backdrop of persistently high mortgage rates, which continue to support the rental housing market.
“Multifamily demand remains resilient in 2025, with absorption on track to eclipse last year’s record highs,” said Grant Hayes, Manager of Market Intelligence at Avison Young. “While deliveries peak in 2025, a sharp pullback in activity is expected by 2026—while rent growth continues to slowly reemerge.”
The report also highlighted that rent growth is beginning to pick up in key markets. Manhattan and San Francisco both registered a 3% year-over-year increase, while national asking rents rose 1.8% over the last two quarters.
Industry stakeholders looking to stay ahead of the curve can gain valuable insights at the upcoming Connect Texas Multifamily event on August 28 in Dallas. The conference will include a “Buy, Build, Sell, Hold” panel featuring some of the most active industry leaders in the state.
EVENT DETAILS:
– Date: Thursday, August 28
– Venue: The Joule, Dallas
– For more information and to register: www.ConnectTXMF2025.com
Stay tuned for more updates as the multifamily market continues to evolve amid shifting economic conditions.
