2018 Multifamily Demand Highest Since 2000

  • The U.S. multifamily market remains healthy, as 2018 net absorption reached the highest level since 2000.
  • Construction activity was also strong, with completions only slightly under 2017’s amount. Nevertheless, demand exceeded new supply for the year.
  • The overall vacancy rate of 4.5% in Q4 was down 20 basis points (bps) year-over-year.
  • Rent growth climbed to an annual rate of 2.8%, up from 2.3% a year ago.
  • Multifamily acquisitions totaled $173 billion in 2018, the highest level in 19 years and up 12.1% from 2017.