Executive Summary
• Q3 marked a second consecutive quarter of negative net absorption (-55,600 units).
• The overall vacancy rate increased by 80 basis points (bps) quarter-over-quarter to 3.9% but remained well below the long-run average of 4.9%.
• Average monthly net effective rent increased by 10.4% year-over-year in Q3 to $2,143, down from a 14.6% year-over-year increase in Q2 and a 15.2% increase in Q1.
• New construction deliveries of 91,900 units in Q3 brought the four-quarter total to 323,400—the highest level since the 1980s.
• Multifamily investment volume in Q3 decreased by 22% year-over-year to $69.8 billion but was the second highest third quarter on record. Year-to-date volume through Q3 was 20% higher than the same time last year, largely due to the strongest first half on record.