Annual Multifamily Investment Volume Up by 9%

Executive Summary

• The overall multifamily vacancy rate increased by 50 basis points (bps) in Q4 to 4.9%, as new deliveries outpaced net absorption for the second consecutive quarter.
• Average effective rent growth in Q4 slowed to 0.2% year-over-year and negative 1.4% quarter-over-quarter, a seasonally typical slowdown.
• Net absorption was negative (-8,300 units) for the first time since Q4 2022.
• Twenty-six of the 69 markets tracked by CBRE recorded positive net absorption in Q4.
• Construction completions totaling 94,500 units fell by only 3% quarter-over-quarter, but more sizable declines are expected in coming quarters.
• Annual multifamily investment volume for 2025 increased by 9.1% to $161.6 billion. Excluding Blackstone’s entity-level acquisition of AIR Communities in 2024, annual volume rose by 18.8%.