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Special Report

Multifamily National Report

2Q 2024

Demand Hits a First Quarter Record, but New
Supply Curbs Vacancy and Rent Progress

Multifamily indicators reveal substantial demand momentum. The number of occupied apartments nationwide surged by nearly 104,000 rentals from January through March 2024, the strongest first quarter net absorption on record. Over the opening three months of the past 30 years, only about 12,500 units were absorbed on average. This abnormally robust start to 2024, with traditionally strong spring and summer months still to come, should put net absorption on track to reach a three-year high, barring any unexpected setbacks. Several other indicators help demonstrate the ongoing improvement. In April of this year, the average amount of time that an apartment in the U.S. sat vacant dipped to 28 days, an eight-month low and a significant recovery from 34 days in December of 2023. The number of new lease applications per unit also rose to an eight-month high in April, while the rate of signed renewals reached the strongest measure since August 2023, reflecting demand from both new and existing tenants. Despite these favorable trends, the influx of new supply remains a major influence on vacancy and rents.  
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