An imbalance of multifamily demand and supply has created downward pressure on rents, with vacancy rates spiking – but some metro areas are making an exception. Demographic shifts and business movements from northern and eastern parts of the U.S. to the south and west caused a need for more housing. Developers chased the trends, and the results were excess supply in some important markets.

But things have a way of working out. Multifamily absorption reached a 24-year record in the second quarter of 2024. "The impressive demand reading in the year-ending 2nd quarter 2024 may be difficult to overstate," said an early July report from RealPage Market Analytics, citing the 390,000 net units leased over the past 12 months. It was the eighth-highest annual number since the year 2000.

Cushman & Wakefield agreed. Given the level of absorption, which nearly surpassed total demand from last year, multifamily vacancies dropped by 10 basis points.