Robust Multifamily Demand Keeps Vacancy Low

 

  • The overall multifamily vacancy rate fell to 4.1% in Q4, down 40 basis points year-over-year and the lowest Q4 level since 2000.

 

  • Average rent increased by 2.6% year-over-year, slightly down from the growth rates of Q3 and a year ago but still relatively favorable and on par with the historical average of 2.6%.

 

  • Development remained active in Q4 with 71,600 units delivered, slightly above the four-year quarterly average of 66,800 units. The 254,600-unit total for 2019 was down 7.0% from 2018. However, the construction pipeline remains near peak levels and indicates no slowdown in completions until at least 2021.