The U.S. multifamily market continues to rebound, driven by robust absorption and a declining national vacancy rate, according to CBRE’s latest research.
Positive net absorption, which measures the change in the number of occupied units, totaled 100,600 units in first quarter 2025, the strongest first quarter performance since 2000 and more than triple the pre-pandemic first quarter average. This marks the fourth consecutive quarter in which demand surpassed new construction completions. As a result, the overall multifamily vacancy rate fell by 20 basis points to 4.8 percent, below its long-term average of 5.0 percent.
After a record 450,000 new units in 2024, only 70,600 units were delivered in first quarter 2025, a slowdown that is expected to continue in coming quarters.
Average monthly rent increased 0.9 percent year-over-year in first quarter 2025 to $2,18
