According to the latest Multifamily Supply Forecast from Yardi Matrix, there has been a slight increase in multifamily construction starts in the third quarter of 2023. This is expected to have a positive impact on future deliveries.
The first half of 2023 saw strong construction starts and an increase of 7.6% in the under-construction pipeline during Q3. As a result, Yardi Matrix has revised their supply forecast for Q4 2023 and predicts an increase of 5.8% for completions in 2024 and 6.2% for completions in 2025.
Currently, there are over one million units (1,223,601) being constructed across various multifamily markets tracked by Yardi Matrix. Of these units, approximately half (479,634) are currently being leased out which is similar to the average over the past six months but represents a significant increase of almost16% compared to last year’s numbers.
In addition to this lease-up pipeline growth rate remaining steady at around half-a-million units per year since early-2019; another noteworthy trend highlighted by Yardi Matrix is that while more than three-quarters-of-a-million new apartments were completed between January-September this year; as many as two-thirds-of-a-million additional ones may be added next-year or later-onwards – with most likely coming online sometime during H1’24 or earlier-than-that!
At present time however according-to-YM data: “the number”of-units-under-construction-but-not-yet-in-the-leasing-phase continues-to-rise-and-reached-nearly-three-quarters-of-a-million-units-at-end-Q32023 – representing quarterly-growth-rate-increase-by-over-sixteen-percent-and-an-yearly-jump-by-more-than-thirty-five-percent!
