This year, multifamily development has been robust. According to a recent supply update from Yardi Matrix, nearly 460,000 units are expected to deliver by the end of the year and more than 510,000 in 2024. Completions are projected to taper off in the years to follow, falling to as low as 365,000 units in 2026, as elevated interest rates and construction costs render projects more difficult to finance.
However, demand for multifamily remains strong, given the current U.S. housing shortage and record-high mortgage rates that have priced many homebuyers out of the market. These factors support capital appreciation within the sector despite current economic challenges.