Renters appear to be riding the record-breaking wave of apartments that came to market in the first half of 2023. They absorbed 98,249 units, almost four times as many as in the first half of 2022, with demand likely to accelerate through mid-2024. The vast bulk occurred in the second quarter, according to Newmark's U.S. multifamily capital markets report for 2Q 2023.  

In 1H 2023, 198,806 rental units were delivered, indicating a potential 51% increase over 2022 for the full year. Even higher numbers are expected through 2025. However, Newmark cautioned that lack of capital could slow the number of new units delivered in 2026-2028.

Meanwhile, it projects that the median market's inventory will rise by 3.2% over the next 12 months, compared to 2% in the previous 12 months. Inventory will grow by 5% or more in 28 markets, compared to 10 for the prior year.