MetLife Investment Management (MIM) expects supply conditions to become the primary driver of U.S. multifamily market performance through 2028 as household formation slows and demand growth converges across markets.
In its July 2026 report, Selecting Multifamily Markets for the Next Cycle, MIM said multifamily performance during the 2016–2024 cycle was largely driven by demand, particularly in high-growth Sun Belt markets. Going forward, however, the firm believes differences in new supply will play a greater role in determining market-level returns.
MIM expects approximately 583,000 net new households to form annually in 2026 and 2027, down roughly 58 percent from the nearly 1.4 million annual average recorded from 2022 through 2024. The firm cited the fading impact of pandemic-era fiscal stimulus, demand that was pulled forward during the pandemic an
