### Apartment Completions Forecast Increased for 2025 and 2026
Despite multifamily construction starts being 40% below their peak in 2022, Yardi Matrix has raised its forecast for apartment completions in 2025 and 2026. The latest report projects approximately 525,000 units to be completed in 2025, an increase of 3.3% compared to the previous quarter’s forecast. For 2026, the forecast has been raised by 11.5%, with an estimated 414,000 units expected to be completed.
According to Yardi Matrix, the number of units currently under construction is decreasing. However, this decline follows a period of high activity and is occurring at a much slower pace than the rapid expansion seen from 2021 to 2023. In 2025, the pipeline of projects still under construction will result in the second-highest level of annual new supply since the 2008 financial crisis, second only to the record volume expected in 2024.
While construction starts have slowed significantly in 2024, leading to a decrease in new supply for 2026, elevated construction timelines mean that some of the current projects under construction will not be completed until that year. As a result, new supply is not expected to hit its lowest point until 2027.
