US Multifamily Rental Housing Completions Expected to Remain Elevated Through 2027

A new research bulletin from Yardi Matrix, released Wednesday, forecasts a slight increase in US multifamily rental housing completions for 2025–27 compared to the previous quarter’s outlook.

A marginally larger than expected construction pipeline at the end of Q1 prompted Yardi Matrix to revise by 2% the estimated new inventory available for market rate, partially and fully affordable, senior housing, and single-family multifamily property types in Q2.

Although the national under-construction pipeline has contracted 13.3% year-over-year, it still contains more than 1.1 million units. Deliveries in 2025 are projected to total about 536,000 units—the second-highest annual supply since the Global Financial Crisis—followed by approximately 772,000 units in 2026 and 2027 combined.

The Q2 forecast comes against a backdrop of moderating construction starts. Total starts in 2024 were 36.4% lower than in 2023 and 40.7% below 2022 levels. While the decline will reduce new supply in 2026, “elevated completion times and a still-large under-construction inventory imply that supply will not completely bottom until 2027,” according to the bulletin.

Although new multifamily development in 2025 is expected to track closely with 2024 levels, Yardi Matrix notes that federal trade policies and their effects on GDP growth, interest rates, development costs, and other economic factors introduce a significant degree of uncertainty.