Despite facing numerous challenges during the past year, the multifamily industry had a standout year, benefitting from household confidence driven by lower inflation, solid employment rates, higher wages and a more accommodating Federal Reserve. Nearly 667,000 apartment units were absorbed during 2024, exceeding expectations for the sector, according to a RealPage analysis.

However, slower demand is expected during the coming year due to slower expected employment growth along with fiscal and monetary policy uncertainty. RealPage expects demand for new apartments to drop by more than 25% this year, although it still expects ‘decent’ absorption.

More than 588,000 units delivered last year, with nearly one-quarter of that supply coming online in five metros: Dallas, Austin, Phoenix, Houston and Atlanta. Based on permitting reports, RealPage expects more than 470,000 new apartments to come online in 2025, led by New York, Phoenix, Dallas and Newark.