U.S. multifamily market report PDF Free Download
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Page 1 U.S. multifamily market report | Q3 2025
U.S. multifamily
market report
Q3 2025
Page 2 U.S. multifamily market report | Q3 2025
As of Q3 2025, average monthly mortgage
payments are $825 higher than average
multifamily rents across the U.S.
As a result, multifamily demand remains
strong in 2025 and is keeping pace with new
deliveries, as the gap between deliveries and
units absorbed has shrunk to its lowest level
since 2021.
New construction has declined by nearly 50%
between 2024 and 2025. As development activity
has slowed, rents have increased by 0.9% so far in
2025 —the highest rate of growth since 2022.
Major coastal markets are seeing above-average
rent growth due to lower supply growth, while
markets with elevated supply growth —particularly
across the Sunbelt —continue to experience
downward pressure on rents.
Year-to-date multifamily sales volumes in
2025 have reached their highest levels since
2022, while treasury rates ended Q3 2025 at
4.16%, down from 4.58% in 2024.
Meanwhile, multifamily remains a favored
asset class, with 60% of dry powder targeting
multifamily assets.
average monthly cost of
homeownership vs. renting
drop in new construction starts
between 2024 and 2025 YTD
increase Q1–Q3 2025 sales
compared to Q1–Q3 2024
▲3.6%
▼47.4%
▲$825
U.S. multifamily market trends
Page 3 U.S. multifamily market report | Q3 2025
Let’s examine prevailing
multifamily trends.
U.S. multifamily
conditions
Page 4 U.S. multifamily market report | Q3 2025
0.0%
1.0%
2.0%
3.0%
4.0%
5.0%
6.0%
7.0%
8.0%
$0
$500
$1,000
$1,500
$2,000
$2,500
$3,000
$3,500
Q4 2019
Q1 2020
Q2 2020
Q3 2020
Q4 2020
Q1 2021
Q2 2021
Q3 2021
Q4 2021
Q1 2022
Q2 2022
Q3 2022
Q4 2022
Q1 2023
Q2 2023
Q3 2023
Q4 2023
Q1 2024
Q2 2024
Q3 2024
Q4 2024
Q1 2025
Q2 2025
Q3 2025
30-year mortgage rates Owned | monthly payment with 10% down
Rent | average effective rent per unit per month
Average monthly payments | own vs. rent
Source: Avison Young Market Intelligence, CoStar, Zillow, FRED
As of Q3 2025, average
monthly mortgage
payments are $825
higher than the average
multifamily rents across
the U.S.
$825
difference
Page 5 U.S. multifamily market report | Q3 2025
Projected
Multifamily construction activity and rents
$2.28
$0.00
$0.50
$1.00
$1.50
$2.00
$2.50
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
Total units delivered New construction starts (units) Average effective rent psf
Source: Avison Young Market Intelligence, CoStar
New construction
starts have declined by
nearly 50% between
2024 and 2025.
Rents have increased
by 0.9% so far in 2025,
marking the highest
rate of growth since
2022.
Page 6 U.S. multifamily market report | Q3 2025
-200,000
-100,000
0
100,000
200,000
300,000
400,000
500,000
2020 2021 2022 2023 2024 2025 YTD
Total deliveries Total units absorbed # of units delivered vs. units absorbed
Multifamily deliveries vs. absorption
Source: Avison Young Market Intelligence, CoStar
Demand remains
strong in 2025, keeping
pace with new
deliveries as the gap
between deliveries and
units absorbed has
narrowed to its lowest
level since 2021.
Page 7 U.S. multifamily market report | Q3 2025
Occupancy and effective rents
92.9%
92.3%
94.6%
92.8%
91.4%
90.7% 90.9%
$2.28
$1.70
$1.80
$1.90
$2.00
$2.10
$2.20
$2.30
$2.40
80%
82%
84%
86%
88%
90%
92%
94%
96%
2019 2020 2021 2022 2023 2024 2025 YTD
Overall occupancy Effective rents psf (monthly)
Overall occupancy rates
saw their first increase
since 2021, spurring
+0.9% rent growth so far
in 2025.
Source: Avison Young Market Intelligence, CoStar
Page 8 U.S. multifamily market report | Q3 2025
Atlanta
Austin
Boston
Charlotte
Chicago
Dallas-Fort Worth
Denver Durham
East Bay
Houston
Inland Empire
Las Vegas
Los Angeles
Miami
Nashville
Orange County
Orlando
Philadelphia
Phoenix
Raleigh
Salt Lake City
San Diego
San Francisco
Silicon Valley
Seattle
Tampa
Washington, D.C.
Northern VA
Manhattan
NYC Outer Boroughs
New Jersey
Suburban MD
0%
1%
2%
3%
4%
5%
6%
7%
8%
-6% -4% -2% 0% 2% 4% 6% 8%
Supply and rent growth by market
Major coastal markets
are seeing above-
average rent growth due
to lower supply growth.
Markets with elevated
supply growth,
particularly across the
Sunbelt, continue
experiencing downward
pressure on rents.
Source: Avison Young Market Intelligence, CoStar
Change in supply last 12 months
Change in effective rents last 12 months
Avg. inventory growth
Avg. rent growth
Above average rent growth
Above average inventory growth
Below average rent growth
Above average inventory growth
Below average rent growth
Below average inventory growth Above average rent growth
Below average inventory growth
Page 9 U.S. multifamily market report | Q3 2025
Let’s examine capital
market conditions.
U.S. multifamily
capital markets
conditions
Page 10 U.S. multifamily market report | Q3 2025
Dry powder by property type
55%
24%
11%
6% 4%
0%
10%
20%
30%
40%
50%
60%
Multifamily Industrial Other Office Retail
Almost 60% of dry powder
is targeting multifamily
assets.
The concentration of
capital indicates sustained
investor confidence in
multifamily performance
amid evolving market
conditions.
Source: Avison Young Market Intelligence, CoStar
Page 11 U.S. multifamily market report | Q3 2025
Multifamily sales volume and treasury rates
4.16%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
3.5%
4.0%
4.5%
5.0%
$0B
$50B
$100B
$150B
$200B
$250B
2018 2019 2020 2021 2022 2023 2024 2025
Q1 Q2 Q3 Q4 Average U.S. Treasury 10-year
Year-to-date multifamily
sales volumes in 2025
are at their highest levels
since 2022, while
treasury rates ended Q3
2025 at 4.16%, down
from 4.58% in 2024.
Source: Avison Young Market Intelligence, RCA, FRED
Page 12 U.S. multifamily market report | Q3 2025
Multifamily sales by buyer type
14% 9% 7% 7% 7% 7% 8% 5% 5% 7% 6%
31%
32% 31% 35% 30% 33% 29%
27% 27%
29% 31%
5%
4% 5% 3% 7% 2% 4%
3% 3%
5% 6%
49% 55% 56% 55% 55%
58%
56% 64%
62%
55% 54%
0% 1% 1% 1% 2% 1% 3% 2% 3% 3% 4%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 YTD
Cross-Border Institutional REIT/Listed Private Other
Institutions and REITs
have comprised 36.8% of
multifamily acquisitions in
2025 YTD, the highest
share since 2019.
Source: Avison Young Market Intelligence, RCA
Page 13 U.S. multifamily market report | Q3 2025
$0M
$1,000M
$2,000M
$3,000M
$4,000M
$5,000M
$6,000M
$7,000M
Dallas-Fort Worth
Seattle
San Francisco
Phoenix
Miami
Atlanta
Los Angeles
Chicago
Boston
Manhattan
Houston
Austin
NYC Outer Boroughs
Orlando
Denver
Charlotte
Silicon Valley
San Diego
Tampa
New Jersey
Philadelphia
Raleigh/Durham
East Bay
Nashville
Washington, D.C.
Salt Lake City
Orange County
Inland Empire
Las Vegas
Northern VA
Suburban MD
Q1 2025 Q2 2025 Q3 2025
2025 YTD sales volume by market
Dallas-Fort Worth is
leading the U.S. in
investment activity,
driven by ongoing
employment growth —
especially in the financial
services industry —
while the Texas Stock
Exchange has now been
formally approved by
the SEC.
Source: Avison Young Market Intelligence, RCA
Page 14 U.S. multifamily market report | Q3 2025
Multifamily loan maturities by market
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
$4.0
$4.5
Manhattan
Atlanta
Los Angeles
NYC Outer Boroughs
Chicago
Dallas-Fort Worth
Miami
New Jersey
Denver
Boston
Seattle
Northern Virginia
Houston
Suburban Maryland
Charlotte
Nashville
Silicon Valley
East Bay-Oakland
Washington, D.C.
Austin
Orange County
Orlando
Phoenix
San Diego
Philadelphia
Raleigh-Durham
San Francisco
Las Vegas
Salt Lake City
Manhattan, Atlanta, and
Los Angeles comprise
almost 25% of multifamily
loan maturities in 2026.
Source: Avison Young Market Intelligence, RCA
Billions (total maturities 2026)
Page 15 U.S. multifamily market report | Q3 2025
For more market insights and information visit avisonyoung.com
For more market insights and
information visit avisonyoung.com
© 2025 Avison Young. All rights reserved. E. & O.E.: The information contained herein was obtained from
sources which we deem reliable and, while thought to be correct, is not guaranteed by Avison Young.
Grant Hayes
Manager, Market Intelligence,
U.S. Multifamily Lead
grant.hayes@avisonyoung.com
