US Multifamily Absorption Rate Rises in Q2
Multifamily Absorption Rises in the Second Quarter
According to the Census Bureau’s latest Survey of Market Absorption of New Multifamily Units, with analysis by the National Association of Home Builders (NAHB), the percentage of new apartment units absorbed within three months after completion rose in Q2.
The survey covers new units in multifamily buildings with five or more units. Completions declined for the second straight quarter, reaching the lowest level since 2023Q4.
The three-month absorption rate for new apartments has fallen significantly from its 75% peak in 2021Q3 but currently stands at 48%. This means 48% of the 98,520 units completed in Q1 were rented within three months. The median asking rent in Q2 was $1,920, up 12.3% from $1,710 a year earlier. This marks the second consecutive quarter of record-high asking rents in the survey.
The three-month absorption rate for new condominiums and cooperative units fell four percentage points to 66%. Completions declined from 2,902 units in Q1 to 2,639 in Q2. Condominium and co-op completions peaked in 2018Q2 at 7,996 units and have trended downward since.
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