The U.S. multifamily market continued a strong rebound in demand during the third quarter of 2024, with 176,000 units absorbed, the highest number since the third quarter of 2021. This demand was just short of the 178,000 new units delivered in the last quarter, resulting in the smallest supply-demand gap in three years. Given the more balanced market, the vacancy rate fell 10 basis points to 7.8%, the first quarterly drop in vacancy since the end of 2021.
The national average annual asking rent growth eased to 1.1% in September 2024 compared to 1.2% at the end of July 2024. Since mid-2023, annual rent growth has hovered around 1% after a rapid deceleration in 2021 and 2022. Quarter-over-quarter rent growth decreased by 0.5% after seeing growth of 1.0% in each of the prior two quarters.
Source: Apartments.com Releases Multifamily Rent Growth Report for Third Quarter of 2024 | Business Wire
