REAL ESTATE • GROWTH • MULTIFAMILY
After years of overbuilding and a surge in multifamily supply across the U.S., a seismic shift began to take hold in 2024. Annual net absorption reached 667,000 units, marking the second‑highest total since 2000—and outpacing new supply by 78,000 units. This underscores how demand is not only robust—it’s overwhelming the market’s ability to keep pace.
270% increase between 2020-2025 vs. 2015-2019 as Millennials and Gen Z form households
Mortgage payments up 109% while rents rose just 20%—creating a permanent renter class
We’re heading into severe supply constraints with 3.6x more renters expected in 2025 compared to 2019
Rents Poised to Climb
With vacancy falling and deliveries tapering, CBRE forecasts rent gains, especially in higher density metropolitan areas.
Investor Confidence Strengthens
Multifamily has captured over 35% of commercial real estate (CRE) sales volume in 2024. Q4 2024 saw a 59% surge in investment, totaling $43.4 billion cbre.com.
Underbuilding Risks Loom
With starts down ~37% from recent highs (and 2025 delivering just ~70,600 units in Q1), supply pressures are building (source: CBRE). If household formation remains elevated, the shortfall could spark rapid rent escalation
Demand for multifamily housing isn’t cyclical—it’s structural. A demographic wave of young renters, combined with homeownership challenges and shrinking starts, is propelling demand. With absorption rates near record highs, and minimal new starts underbuilding risks intensify.
Multifamily could be entering its next boom—but this time, job growth and demographics are compounding, not recovering. As the renter class scales and supply trails, multifamily could potentially define U.S. housing for the next decade.
Citizen Mint is actively looking for unique opportunities in the market where supply issues and strong regional demographics will drive returns for real estate investments. If you would like to see where we have found this opportunities currently, click HERE to login to the platform.
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