Fourth-quarter multifamily net absorption reached record levels, closing the year with absorption of 183,600 units, a 13% quarter-over-quarter increase and a 118% year-over-year increase, according to CBRE’s Q4 multifamily report.

Annual net absorption stood at 530,600 units, which is more than double the 248,800 units absorbed in 2023. That is only 14% less than record annual absorption in 2021. Demand outpaced 114,000 new units by 61% in the fourth quarter and outpaced 451,000 new units by 18% for the year.

CBRE tracks 69 markets, all of which recorded positive net absorption during the fourth quarter, the first year this has happened. Markets typically record low or negative net absorption in the fourth quarter, the company said. New York, Houston and Dallas led all markets with 18,600, 10,400 and 8,800 units absorbed respectively.