U.S. multifamily market report | Q4 2024 PDF Free Download
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Page 1 U.S. Multifamily market report | Q4 2024
U.S. multifamily
market report
Q4 2024
Page 2 U.S. Multifamily market report | Q4 2024
Multifamily demand remained strong through
the fourth quarter of 2024, driving absorption
rates to levels comparable to the all-time highs
of 2021.
In 2024, absorption levels were 67.1%
higher than annual averages seen between
2015 and 2019.
Absorption continued to increase across every
major U.S. market, particularly in the Sunbelt
where population growth continues to drive
occupancy gains.
Meanwhile, rents in major markets are rising
again, with Silicon Valley and San Francisco
leading at 3% effective rent growth year over year
from the fourth quarter of 2023.
Multifamily remains the favored product,
accounting for 34.7% of total investment
activity since 2023, outpacing industrial sales by
almost 20%.
30.8% of the top MSAs saw investment volumes
increase 40% or more over during the same period.
increase in multifamily
absorption between 2023
and 2024
of major multifamily markets had
absorption as percentage of
inventory increase by 3% in 2024
of top multifamily markets saw
investment sales activity
increase between 2023 and 2024
73.1%62.1%
+72.9%
U.S. multifamily market trends
Page 3 U.S. Multifamily market report | Q4 2024
Let’s examine prevailing
multifamily trends.
U.S. multifamily
conditions
Page 4 U.S. Multifamily market report | Q4 2024
Multifamily absorption and mortgage rates
171,108
147,428
180,230
208,042
191,498
167,476
385,955
98,045
171,597
296,735
6.7%
0%
1%
2%
3%
4%
5%
6%
7%
8%
0
50,000
100,000
150,000
200,000
250,000
300,000
350,000
400,000
450,000
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Units absorption 30-year mortgage interest rates
Source: AVANT by Avison Young, Freddie Mac
Multifamily demand
remained strong through
the fourth quarter of
2024, driving absorption
rates to levels
comparable to the record
highs of 2021, as home
interest rates remained
well above recent lows.
2024 absorption levels
were 67.1% higher than
annual averages seen
between 2015 and 2019.
Page 5 U.S. Multifamily market report | Q4 2024
$2,058
$1,000
$1,200
$1,400
$1,600
$1,800
$2,000
$2,200
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
Total units delivered Total units under construction Effective rent per unit (monthly)
Multifamily development activity
Construction activity
dropped by 31.8% year
over year in the fourth
quarter of 2024. Rent
growth has been
minimal, but major
markets are beginning to
see it climb again.
Source: AVANT by Avison Young, CoStar
Page 6 U.S. Multifamily market report | Q4 2024
93.6% 94.2% 94.8%
92.5% 92.9% 94.2%
0.9%
0.2%
1.7%
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
1.2%
1.4%
1.6%
1.8%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Class A Class B Class C
Q4 2019 occupancy Q4 2024 occupancy Effective rent growth last 12 months (%)
Multifamily occupancy and rent growth
Note: Class A occupancy figures reflect stabilized occupancy
Source: AVANT by Avison Young, CoStar
Despite the uptick in
development activity,
occupancy rates are
hovering close to
pre-pandemic levels,
while class C assets
continued to see year
over year rental rate
growth in the fourth
quarter of 2024.
Page 7 U.S. Multifamily market report | Q4 2024
Orange County
Silicon Valley
Los Angeles
San Diego
Washington, DC Chicago
New York
San Francisco
East Bay
Houston
Inland Empire
Boston
Las Vegas
Philadelphia
Denver
Dallas-Fort Worth
Seattle
Fort Lauderdale
Atlanta
Durham
Northern New Jersey
Phoenix
Charlotte
Orlando
Salt Lake City
Miami
Nashville
Raleigh
Austin
-6%
-5%
-4%
-3%
-2%
-1%
0%
1%
2%
3%
4%
5%
0% 1% 2% 3% 4% 5% 6% 7% 8%
Effective rent growth from Q4 2023-Q4 2024
Absorption as share of inventory from Q4 2023-Q4 2024
Central
Northeast
South
West
Effective rents and absorption by market
Absorption increased
across every major U.S.
market, particularly in
the Sunbelt where
population growth
continues to drive
occupancy gains.
Meanwhile, rents in
major markets are rising
again, with Silicon Valley
and San Francisco
leading at +3% effective
rent growth.
Source: AVANT by Avison Young, CoStar
Page 8 U.S. Multifamily market report | Q4 2024
Absorption as % inventory is +5.0% over
last 12 months
Source: AVANT by Avison Young, CoStar, Placer.ai
Construction vs. multifamily inventory growth by MSA
1.1%
0.7%
0.5%
-0.8%
0.8% 0.8%
0.1% 0.2% 0.3%
0.1%
-0.1%
0.6%
0.4%
0.3%
0.8%
0.0%
-0.2% -0.1%
0.1%
-0.1%
0.9%
0.1% 0.2% 0.2%
-1.0%
-0.5%
0.0%
0.5%
1.0%
1.5%
0%
10%
20%
30%
40%
50%
60%
Austin
Nashville
Salt Lake City
Miami
Charlotte
Raleigh
Orlando
Phoenix
Denver
Boston
Durham
Dallas-Fort Worth
Atlanta
Seattle
Houston
Philadelphia
Washington, DC
San Francisco
Los Angeles
Chicago
Silicon Valley
Las Vegas
New York
San Diego
Inland Empire
Multifamily inventory growth 2019-2024 % of inventory under construction Population % growth (5/2023-5/2024)
Page 9 U.S. Multifamily market report | Q4 2024
Let’s examine capital
market conditions.
U.S. multifamily
capital markets
conditions
Page 10 U.S. Multifamily market report | Q4 2024
Multifamily sales volume and treasury rates
4.4%
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
$300B
$350B
$400B
2018 2019 2020 2021 2022 2023 2024
Q1 Q2 Q3 Q4 Average 10-year U.S. treasury rate
Multifamily sales activity
increased by 9.5%
between 2023 and 2024
but remain below prior
highs due to elevated
treasury rates.
Source: AVANT by Avison Young, RCA
Page 11 U.S. Multifamily market report | Q4 2024
Sales volume share by property type
36.6%
43.8% 40.9%
33.5% 35.7%
5.0%
6.3% 8.8%
9.2% 6.2%
24.4%
22.3% 20.2% 29.3%
26.7%
24.0% 18.7%
17.1% 15.3% 18.2%
9.9% 8.8% 13.0% 12.7% 13.1%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2020 2021 2022 2023 2024
Multifamily Hotel Industrial Office Retail
Multifamily remains the
favored product,
accounting for 34.6% of
total investment activity
since 2023 and 35.7% of
total sales volume in
2024.
Source: AVANT by Avison Young, RCA
Page 12 U.S. Multifamily market report | Q4 2024
-60%
-40%
-20%
0%
20%
40%
60%
80%
100%
120%
140%
160%
180%
200%
220%
240%
260%
280%
$0
$2
$4
$6
$8
$10
$12
$14
NYC Metro
Dallas
LA Metro
SF Metro
DC Metro
Atlanta
Denver
Miami/So Fla
Seattle
Phoenix
Boston Metro
Chicago
Houston
Charlotte
San Diego
Tampa
Austin
Orlando
Portland
Las Vegas
Minneapolis
Philly Metro
San Antonio
Nashville
Baltimore
Indianapolis
YTD volume Change % YoY
Top U.S. MSAs for multifamily investment
sale volume
Source: AVANT by Avison Young, RCA
73.1% of multifamily
markets’ sales volume in
2024 saw investment
volumes increase
between 2023 and 2024.
30.8% of the top MSAs
saw investment volumes
increase 40% or more
over during the same
period.
Billions
Page 13 U.S. Multifamily market report | Q4 2024
Average cap rates
Source: AVANT by Avison Young, RCA
Note: Only sales over $2.5MM USD
7.2%
6.5%
7.1%
5.4%
8.5%
4%
5%
6%
7%
8%
9%
10%
Q1 2014
Q3 2014
Q1 2015
Q3 2015
Q1 2016
Q3 2016
Q1 2017
Q3 2017
Q1 2018
Q3 2018
Q1 2019
Q3 2019
Q1 2020
Q3 2020
Q1 2021
Q3 2021
Q1 2022
Q3 2022
Q1 2023
Q3 2023
Q1 2024
Q3 2024
Office Industrial Retail Multifamily Hospitality
Multifamily cap rates
improved quarter over
quarter, shifting from
5.6% in the third quarter
of 2024 to 5.4% in the
fourth quarter of 2024.
Page 14 U.S. Multifamily market report | Q4 2024
Multifamily loan maturities
Source: AVANT by Avison Young, RCA
$-
$20
$40
$60
$80
$100
$120
$140
$160
$180
2025 2026 2027 2028 2029 2030 2031 2032
Billions
17.2% of multifamily loan
maturities occurring over
the next eight years are
in 2029.
Page 15 U.S. Multifamily market report | Q4 2024
Multifamily foreclosure initiations
Source: AVANT by Avison Young, RCA
10
20
30
40
50
60
70
80
90
Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024
Correlating with the hike
in interest rates
beginning in the first
quarter of 2023, a large
quantity of foreclosures
were initiated. Office and
multifamily make up the
majority.
However, the Fed’s
September interest rate
cut, coupled with
improving multifamily
and office market
conditions, helped
mitigate foreclosure
initiation in the fourth
quarter.
Page 16 U.S. Multifamily market report | Q4 2024
For more market insights and information visit avisonyoung.com
For more market insights and
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© 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 – Multifamily & Client Advisory
grant.hayes@avisonyoung.com
Kenneth Wang
Senior Analyst, Market Intelligence
kenneth.wang@avisonyoung.com
