GITNUXREPORT 2026

Multifamily Industry Statistics

The U.S. multifamily market is a massive, growing sector with strong demand and rising rents.

Rajesh Patel

Team Lead & Senior Researcher with over 15 years of experience in market research and data analytics.

First published: Feb 13, 2026

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Statistic 1

Multifamily construction starts totaled 450,000 units in 2023.

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Under-construction multifamily inventory peaked at 800,000 units in 2023.

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Completions reached 440,000 new multifamily units in 2023.

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Supply growth rate was 2.8% in national multifamily inventory 2023.

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Starts in top 50 metros: 320,000 units in 2023.

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Multifamily permits issued: 510,000 units nationwide in 2023.

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Absorption exceeded supply by 40,000 units in 2023.

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New supply in Sun Belt: 180,000 units completed 2023.

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Construction spending on multifamily hit $50 billion in 2023.

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Pipeline deliveries projected at 400,000 units for 2024 from 2023 starts.

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Urban infill multifamily starts: 15% of total in 2023.

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Class A new construction vacancy: 9.5% in 2023.

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Multifamily share of housing starts: 24.5% in 2023.

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Total under-construction units declined 10% from 2022 peak in 2023.

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Southeast saw 120,000 multifamily starts in 2023.

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Adaptive reuse projects added 5,000 multifamily units in 2023.

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High-rise construction: 8% of total multifamily starts 2023.

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Entitled projects totaled 1.2 million units at end-2023.

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New supply growth slowed to 3.1% in top markets 2023.

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Midwest completions: 60,000 units in 2023.

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Student housing construction: 25,000 beds added 2023.

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Senior housing multifamily starts: 12,000 units 2023.

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Total multifamily inventory growth: 550,000 units net 2023.

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West Coast starts dropped 15% YoY to 70,000 units 2023.

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Northeast pipeline: 150,000 units under construction end-2023.

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35% of U.S. households were renters in 2023, driving multifamily demand.

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Millennials (ages 27-42) comprised 40% of renters in 2023.

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Household formation rate added 1.2 million renters in 2023.

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22% of renters were seniors over 55 in 2023.

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Immigration contributed 300,000 to renter demand in 2023.

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Gen Z renters grew 15% YoY to 12 million in 2023.

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Single-person households: 28% of multifamily demand 2023.

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Urban renter population share: 35% in top metros 2023.

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Cost-burdened renters (over 30% income): 49% in 2023.

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Black households: 52% renters vs. 30% homeowners 2023.

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Demand from job growth: 2.5 million new jobs supported renters 2023.

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Suburban migration increased renter demand 8% in 2023.

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Student renters: 9 million in multifamily 2023.

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Median renter age rose to 32 in 2023.

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Hispanic renters grew to 20% of total households 2023.

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Remote workers renting multifamily: 25% increase since 2020 in 2023.

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Demand per capita highest in Florida at 80 units/1k people 2023.

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Female-headed households: 30% of renters 2023.

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Net renter migration to Sun Belt: 500,000 households 2023.

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Income-qualified demand exceeded supply by 4 million units 2023.

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Young professionals (25-34): 28% of new leases 2023.

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Military renters: 1.2 million in multifamily 2023.

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Demand from divorce rates: 200,000 additional renters 2023.

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Renter households with children: 25% in 2023.

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High-income renters (>100k): 15% share up 20% YoY 2023.

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Projected renter households to grow 2 million by 2025 from 2023 base.

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Multifamily investment sales volume: $145 billion in 2023.

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Debt issuance for multifamily: $85 billion in 2023.

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Equity raised for multifamily deals: $60 billion in 2023.

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Average cap rate: 5.6% for Class B properties in 2023.

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Multifamily REIT total returns: 8.2% in 2023.

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CMBS multifamily loans: $25 billion originated 2023.

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Leverage ratio average 55% for core multifamily in 2023.

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Foreign investment in U.S. multifamily: $12 billion in 2023.

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Value-add deals comprised 35% of transaction volume 2023.

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Interest rates impact: spreads widened 150 bps in 2023.

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Fannie Mae multifamily loans: $40 billion in 2023.

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Freddie Mac preserved affordability loans: $15 billion 2023.

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Private equity dry powder for multifamily: $100 billion end-2023.

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Core multifamily IRR targeted at 6.5% in 2023 deals.

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Distress sales: 5% of total volume in 2023.

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Bridge lending volume: $30 billion for multifamily 2023.

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HUD-insured multifamily loans: $8 billion in 2023.

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Institutional investors share: 45% of acquisitions 2023.

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Refinancing volume dropped 60% to $50 billion in 2023.

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Mezzanine debt: $10 billion raised for multifamily 2023.

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Preferred equity deals: 20% increase YoY in 2023.

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Average loan-to-value: 65% for new multifamily debt 2023.

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Sector pricing spread over Treasuries: 180 bps in 2023.

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Total multifamily portfolio sales: 12,000 properties in 2023.

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The U.S. multifamily housing market was valued at approximately $1.2 trillion in 2023, representing a 5.2% increase from 2022.

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Multifamily properties accounted for 37% of all rental housing stock in the U.S. as of 2022.

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The total number of multifamily units in the U.S. reached 21.5 million by the end of 2023.

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Annual multifamily rent growth averaged 4.8% nationwide in 2023.

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The multifamily sector saw a 6.1% year-over-year increase in effective rents in Sun Belt markets in 2023.

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U.S. multifamily market cap rates compressed to 5.3% in Q4 2023.

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Multifamily investment volume totaled $145 billion in 2023, down 40% from 2022 peak.

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The sector's market size grew at a CAGR of 4.2% from 2018 to 2023.

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Multifamily represented 18% of total commercial real estate market value in 2023.

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National multifamily absorption rate hit 280,000 units in 2023.

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The market expanded by 2.1% in inventory growth in 2023.

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Multifamily sector GDP contribution was $250 billion in 2022.

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Projected market growth to $1.5 trillion by 2028 at 4% CAGR.

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Sun Belt multifamily market share grew to 45% of national total in 2023.

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Institutional ownership of multifamily reached 15% of units in 2023.

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Multifamily vacancy rate stabilized at 6.5% nationally in 2023.

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Total multifamily revenue hit $220 billion in 2023.

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Market size per capita for multifamily units was 65 units per 1,000 people in 2023.

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Multifamily NOI growth was 5.7% in 2023.

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Sector's share of new housing starts was 25% in 2023.

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U.S. multifamily market valued at 12% of total housing stock worth in 2023.

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Annualized market growth rate projected at 3.8% through 2025.

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Multifamily sector employed 3.2 million workers in 2023.

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Total assets under management in multifamily REITs: $300 billion in 2023.

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Market penetration in top 50 MSAs reached 22% of housing in 2023.

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Multifamily market revenue per unit averaged $16,200 in 2023.

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Growth in Class A multifamily segment was 7.2% in value terms 2023.

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National multifamily portfolio value increased 4.5% YoY in Q3 2023.

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Sector's contribution to rental income was 40% of total U.S. in 2023.

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Multifamily market cap rate average 5.4% across 50 metros in 2023.

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National average multifamily occupancy rate was 94.2% in Q4 2023.

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Effective rent per unit rose 3.8% YoY to $1,682 in December 2023.

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Occupancy in Sun Belt markets averaged 93.5% throughout 2023.

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Physical occupancy rate for Class B properties hit 95.1% in 2023.

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Average U.S. multifamily rent reached $1,700 per month in 2023.

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Occupancy rate in Midwest metros was 95.8% at year-end 2023.

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Rent growth slowed to 2.5% in Northeast markets in 2023.

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Economic occupancy nationwide averaged 92.7% in 2023.

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Average rent for 2-bedroom units was $1,950 in top 50 MSAs 2023.

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Vacancy rate for new deliveries was 8.2% after stabilization in 2023.

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Same-store rent growth was 4.1% for institutional portfolios in 2023.

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Occupancy in suburban multifamily reached 94.8% in 2023.

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Monthly rent per sq ft averaged $2.15 nationally in 2023.

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West Coast multifamily occupancy dipped to 93.2% in late 2023.

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Concession rates increased to 5.2 weeks of free rent equivalent in 2023.

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Average lease renewal rate was 58% with 4.2% bump in 2023.

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Occupancy for affordable multifamily held at 96.5% in 2023.

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Rent per unit in gateway cities grew 3.1% YoY in 2023.

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National multifamily vacancy rate was 6.8% for Class A in 2023.

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Effective rents in secondary markets rose 5.3% in 2023.

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Occupancy stabilized at 94.5% post-pandemic in 2023.

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Average asking rent increased to $1,713 in Q4 2023.

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Southeast occupancy averaged 94.1% across 2023.

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Rent growth for garden-style properties was 4.0% in 2023.

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While the headlines might scream about a 40% drop in investment, the U.S. multifamily industry is quietly building a $1.2 trillion fortress of resilience, driven by soaring demand and a fundamental shift in how Americans live.

Key Takeaways

The U.S. multifamily housing market was valued at approximately $1.2 trillion in 2023, representing a 5.2% increase from 2022.
Multifamily properties accounted for 37% of all rental housing stock in the U.S. as of 2022.
The total number of multifamily units in the U.S. reached 21.5 million by the end of 2023.
National average multifamily occupancy rate was 94.2% in Q4 2023.
Effective rent per unit rose 3.8% YoY to $1,682 in December 2023.
Occupancy in Sun Belt markets averaged 93.5% throughout 2023.
Multifamily construction starts totaled 450,000 units in 2023.
Under-construction multifamily inventory peaked at 800,000 units in 2023.
Completions reached 440,000 new multifamily units in 2023.
35% of U.S. households were renters in 2023, driving multifamily demand.
Millennials (ages 27-42) comprised 40% of renters in 2023.
Household formation rate added 1.2 million renters in 2023.
Multifamily investment sales volume: $145 billion in 2023.
Debt issuance for multifamily: $85 billion in 2023.
Equity raised for multifamily deals: $60 billion in 2023.

The U.S. multifamily market is a massive, growing sector with strong demand and rising rents.

Construction and Supply

Multifamily construction starts totaled 450,000 units in 2023.
Under-construction multifamily inventory peaked at 800,000 units in 2023.
Completions reached 440,000 new multifamily units in 2023.
Supply growth rate was 2.8% in national multifamily inventory 2023.
Starts in top 50 metros: 320,000 units in 2023.
Multifamily permits issued: 510,000 units nationwide in 2023.
Absorption exceeded supply by 40,000 units in 2023.
New supply in Sun Belt: 180,000 units completed 2023.
Construction spending on multifamily hit $50 billion in 2023.
Pipeline deliveries projected at 400,000 units for 2024 from 2023 starts.
Urban infill multifamily starts: 15% of total in 2023.
Class A new construction vacancy: 9.5% in 2023.
Multifamily share of housing starts: 24.5% in 2023.
Total under-construction units declined 10% from 2022 peak in 2023.
Southeast saw 120,000 multifamily starts in 2023.
Adaptive reuse projects added 5,000 multifamily units in 2023.
High-rise construction: 8% of total multifamily starts 2023.
Entitled projects totaled 1.2 million units at end-2023.
New supply growth slowed to 3.1% in top markets 2023.
Midwest completions: 60,000 units in 2023.
Student housing construction: 25,000 beds added 2023.
Senior housing multifamily starts: 12,000 units 2023.
Total multifamily inventory growth: 550,000 units net 2023.
West Coast starts dropped 15% YoY to 70,000 units 2023.
Northeast pipeline: 150,000 units under construction end-2023.

Construction and Supply Interpretation

Despite a staggering $50 billion construction surge adding 440,000 units, the relentless pipeline is beginning to cool as under-construction inventory fell and absorption still outpaced supply, proving the market is racing to meet demand but wisely downshifting.

Demographics and Demand

35% of U.S. households were renters in 2023, driving multifamily demand.
Millennials (ages 27-42) comprised 40% of renters in 2023.
Household formation rate added 1.2 million renters in 2023.
22% of renters were seniors over 55 in 2023.
Immigration contributed 300,000 to renter demand in 2023.
Gen Z renters grew 15% YoY to 12 million in 2023.
Single-person households: 28% of multifamily demand 2023.
Urban renter population share: 35% in top metros 2023.
Cost-burdened renters (over 30% income): 49% in 2023.
Black households: 52% renters vs. 30% homeowners 2023.
Demand from job growth: 2.5 million new jobs supported renters 2023.
Suburban migration increased renter demand 8% in 2023.
Student renters: 9 million in multifamily 2023.
Median renter age rose to 32 in 2023.
Hispanic renters grew to 20% of total households 2023.
Remote workers renting multifamily: 25% increase since 2020 in 2023.
Demand per capita highest in Florida at 80 units/1k people 2023.
Female-headed households: 30% of renters 2023.
Net renter migration to Sun Belt: 500,000 households 2023.
Income-qualified demand exceeded supply by 4 million units 2023.
Young professionals (25-34): 28% of new leases 2023.
Military renters: 1.2 million in multifamily 2023.
Demand from divorce rates: 200,000 additional renters 2023.
Renter households with children: 25% in 2023.
High-income renters (>100k): 15% share up 20% YoY 2023.
Projected renter households to grow 2 million by 2025 from 2023 base.

Demographics and Demand Interpretation

The multifamily industry is experiencing a gold rush fueled by everyone from Gen Z to retirees, but behind the booming demand lies a stark reality where nearly half of all renters are financially strained and the market is short millions of affordable units.

Investment and Financing

Multifamily investment sales volume: $145 billion in 2023.
Debt issuance for multifamily: $85 billion in 2023.
Equity raised for multifamily deals: $60 billion in 2023.
Average cap rate: 5.6% for Class B properties in 2023.
Multifamily REIT total returns: 8.2% in 2023.
CMBS multifamily loans: $25 billion originated 2023.
Leverage ratio average 55% for core multifamily in 2023.
Foreign investment in U.S. multifamily: $12 billion in 2023.
Value-add deals comprised 35% of transaction volume 2023.
Interest rates impact: spreads widened 150 bps in 2023.
Fannie Mae multifamily loans: $40 billion in 2023.
Freddie Mac preserved affordability loans: $15 billion 2023.
Private equity dry powder for multifamily: $100 billion end-2023.
Core multifamily IRR targeted at 6.5% in 2023 deals.
Distress sales: 5% of total volume in 2023.
Bridge lending volume: $30 billion for multifamily 2023.
HUD-insured multifamily loans: $8 billion in 2023.
Institutional investors share: 45% of acquisitions 2023.
Refinancing volume dropped 60% to $50 billion in 2023.
Mezzanine debt: $10 billion raised for multifamily 2023.
Preferred equity deals: 20% increase YoY in 2023.
Average loan-to-value: 65% for new multifamily debt 2023.
Sector pricing spread over Treasuries: 180 bps in 2023.
Total multifamily portfolio sales: 12,000 properties in 2023.

Investment and Financing Interpretation

Despite the sector's $145 billion in transactions and formidable dry powder, 2023 revealed a market leaning heavily on value-add plays and bridge loans while cautiously navigating the widening spreads and higher return targets demanded by today's capital.

Market Size and Growth

The U.S. multifamily housing market was valued at approximately $1.2 trillion in 2023, representing a 5.2% increase from 2022.
Multifamily properties accounted for 37% of all rental housing stock in the U.S. as of 2022.
The total number of multifamily units in the U.S. reached 21.5 million by the end of 2023.
Annual multifamily rent growth averaged 4.8% nationwide in 2023.
The multifamily sector saw a 6.1% year-over-year increase in effective rents in Sun Belt markets in 2023.
U.S. multifamily market cap rates compressed to 5.3% in Q4 2023.
Multifamily investment volume totaled $145 billion in 2023, down 40% from 2022 peak.
The sector's market size grew at a CAGR of 4.2% from 2018 to 2023.
Multifamily represented 18% of total commercial real estate market value in 2023.
National multifamily absorption rate hit 280,000 units in 2023.
The market expanded by 2.1% in inventory growth in 2023.
Multifamily sector GDP contribution was $250 billion in 2022.
Projected market growth to $1.5 trillion by 2028 at 4% CAGR.
Sun Belt multifamily market share grew to 45% of national total in 2023.
Institutional ownership of multifamily reached 15% of units in 2023.
Multifamily vacancy rate stabilized at 6.5% nationally in 2023.
Total multifamily revenue hit $220 billion in 2023.
Market size per capita for multifamily units was 65 units per 1,000 people in 2023.
Multifamily NOI growth was 5.7% in 2023.
Sector's share of new housing starts was 25% in 2023.
U.S. multifamily market valued at 12% of total housing stock worth in 2023.
Annualized market growth rate projected at 3.8% through 2025.
Multifamily sector employed 3.2 million workers in 2023.
Total assets under management in multifamily REITs: $300 billion in 2023.
Market penetration in top 50 MSAs reached 22% of housing in 2023.
Multifamily market revenue per unit averaged $16,200 in 2023.
Growth in Class A multifamily segment was 7.2% in value terms 2023.
National multifamily portfolio value increased 4.5% YoY in Q3 2023.
Sector's contribution to rental income was 40% of total U.S. in 2023.
Multifamily market cap rate average 5.4% across 50 metros in 2023.

Market Size and Growth Interpretation

Despite a staggering $1.2 trillion valuation and rents climbing like an overachieving intern, the multifamily market reveals a tale of two cities, where the Sun Belt's sizzling growth and institutional hunger starkly contrast with a chilling 40% investment plunge, proving that even in a sector housing 37% of renters, gravity—and interest rates—eventually apply.

Rental Rates and Occupancy

National average multifamily occupancy rate was 94.2% in Q4 2023.
Effective rent per unit rose 3.8% YoY to $1,682 in December 2023.
Occupancy in Sun Belt markets averaged 93.5% throughout 2023.
Physical occupancy rate for Class B properties hit 95.1% in 2023.
Average U.S. multifamily rent reached $1,700 per month in 2023.
Occupancy rate in Midwest metros was 95.8% at year-end 2023.
Rent growth slowed to 2.5% in Northeast markets in 2023.
Economic occupancy nationwide averaged 92.7% in 2023.
Average rent for 2-bedroom units was $1,950 in top 50 MSAs 2023.
Vacancy rate for new deliveries was 8.2% after stabilization in 2023.
Same-store rent growth was 4.1% for institutional portfolios in 2023.
Occupancy in suburban multifamily reached 94.8% in 2023.
Monthly rent per sq ft averaged $2.15 nationally in 2023.
West Coast multifamily occupancy dipped to 93.2% in late 2023.
Concession rates increased to 5.2 weeks of free rent equivalent in 2023.
Average lease renewal rate was 58% with 4.2% bump in 2023.
Occupancy for affordable multifamily held at 96.5% in 2023.
Rent per unit in gateway cities grew 3.1% YoY in 2023.
National multifamily vacancy rate was 6.8% for Class A in 2023.
Effective rents in secondary markets rose 5.3% in 2023.
Occupancy stabilized at 94.5% post-pandemic in 2023.
Average asking rent increased to $1,713 in Q4 2023.
Southeast occupancy averaged 94.1% across 2023.
Rent growth for garden-style properties was 4.0% in 2023.

Rental Rates and Occupancy Interpretation

While rents climbed and concessions crept higher in 2023, the national multifamily market demonstrated remarkable resilience, stubbornly holding occupancy above 94% as if to say, "People always need a place to live, even if they need a free month to agree on the price."

Sources & References

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