Matrix Research Bulletin-Multifamily Forecast-Q1 2025 February 27, 2025

Multifamily New Supply to Decrease in 2025-2026

Multifamily construction starts are now 40% below the peak level recorded in 2022. This slowdown has begun to work its way into the under-construction pipeline, which will result in a contraction in new supply from 2025 through 2027. That follows a very high level of development activity and a large inventory of properties still to be completed. As a result, forecast completions for 2025 have been increased by 3.3% to roughly 525,000 units, with a 2026 increase of 11.5% to 414,000 units.