CBRE REPORT Annual Multifamily Investment Volume Up by 9%

Executive Summary

– The overall multifamily vacancy rate increased by 50 basis points (bps) in Q4 to 4.9%,
as new deliveries outpaced net absorption for the second consecutive quarter.

– Average effective rent growth in Q4 slowed to 0.2% year-over-year and negative 1.4%
quarter-over-quarter, a seasonally typical slowdown.

– Net absorption was negative (-8,300 units) for the first time since Q4 2022.

– Twenty-six of the 69 markets tracked by CBRE recorded positive net absorption in Q4.

– Construction completions totaling 94,500 units fell by only 3% quarter-over-quarter,
but more sizable declines are expected in coming quarters.

– Annual multifamily investment volume for 2025 increased by 9.1% to $161.6 billion.
Excluding Blackstone’s entity-level acquisition of AIR Communities in 2024,
annual volume rose by 18.8%.   ...more

RSK: With less construction, looks like everyone focused the money and effort into data centers. That gave multifamily time to catch up.