The U.S. multifamily market continued its strong recovery in the second quarter, as robust absorption reduced the national vacancy rate, according to CBRE’s latest research.
Positive net absorption, which measures the change in the number of occupied units, totaled 188,200 units in second quarter 2025, the strongest second-quarter performance on record. This marks the fifth consecutive quarter in which demand surpassed construction completions. As a result, the overall multifamily vacancy rate fell by 70 basis points to 4.1 percent, well below its long-term average of 5 percent.
After a record 450,000 new units in 2024, only 83,000 units were delivered in second quarter 2025, with a more pronounced slowdown expected in coming quarters.
“Multifamily fundamentals strengthened dramatically in the second quarter, as robust renter demand continues to outpace new d
