Key Highlights:
- National multifamily market conditions remained stable throughout 2024. The vacancy rate was steady in the 5% range while rent growth was unchanged in the 1% range. Strong tenant demand offset elevated completions. Similar to recent quarters, operating metrics differed considerably by market. The number of units delivered and net migration trends drove the variation.
- The investment market improved in 2024 but remained limited compared with the 2015 to 2019 period. Transaction volume increased by 22% year-over-year and the average price-per-unit was 9% greater than one year prior.
- Multifamily lending activity increased 27% year-over-year from $246 billion to $312 billion, which represents the first calendar year of growth since 2021. Lending activity is supported by increased investment sales, loan maturities, and investors getting used to higher rates.
