25 Interesting Multifamily Housing Statistics You Didn't Know

September 29, 2025

Rentana

Most people drive past apartment buildings every day without thinking twice about them. Yet behind those doors are millions of households, billions of dollars in investment, and some surprising trends that shape how we live and work. Multifamily real estate is one of the largest and fastest-growing parts of the housing market.

Let’s discuss 25 multifamily housing statistics you probably didn’t know, each one offering a new way to see the impact and importance of this asset class.

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The Size of the Multifamily Market

Fact 1: Stock Growth Since 2000

The U.S. multifamily housing stock has grown by about 50% since 2000, according to World Metrics Report’s on Multifamily housing

This growth means that millions of new apartments have been built over the last 25 years to keep up with demand. With more people choosing to rent instead of buy, developers have consistently added more units, especially in cities where home prices are out of reach for many.

It also shows how important multifamily housing has become to the overall housing market. Without that growth, many renters would have been left without options, and affordability challenges would be even greater than they are today.

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Fact 2: 1 in 9 Americans Live in Multifamily Units

Around 37 million Americans live in multifamily rental units.

That is roughly one in nine Americans living in apartments or similar housing. Multifamily properties are not just about buildings, they represent a huge portion of everyday life for families, students, and professionals.

This number highlights how central multifamily housing is to communities. From large urban towers to smaller suburban complexes, millions of people rely on multifamily housing for affordability, convenience, and flexibility.

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Fact 3: Multifamily Construction Dominance in 2025

In the first quarter of 2025, 94% of multifamily construction starts were for rental units.

Builders are clearly betting on the rental market, not condos for ownership. This reflects the reality that many households prefer the flexibility of renting, while others are priced out of buying homes due to higher interest rates and home prices.

This trend also suggests that multifamily investors and property managers will have even more opportunities in the coming years.

As new rental units enter the market, competition may grow, but it also shows just how central rental housing has become to the housing economy.

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Fact 4: Vacancy Rate Hits a Low in Q2 2025

In Q2 2025, the U.S. multifamily vacancy rate dropped to 4.1%.

A vacancy rate this low means that apartments are filling quickly and landlords are having little trouble finding tenants. For comparison, vacancy rates closer to 7% or 8% would suggest weaker demand.

This is good news for property owners, who can count on steady rental income. It also highlights the pressure renters face in many cities, since fewer available apartments often lead to higher rents and more competition for housing.

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Fact 5: The Highest Second Quarter Record Absorption (Units Rented)

In Q2 2025, 188,200 net units were absorbed across 69 markets, the highest second-quarter absorption ever.

Absorption is the measure of how many units are rented out, and this record-breaking figure shows that demand is still incredibly strong, even as construction continues to deliver new apartments.

For investors and developers, this is a positive sign that the market is capable of handling new supply. For renters, it suggests that despite new buildings opening, demand continues to keep pace, which may keep rents from dropping as much as some hope.

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Top Pick: Is Multifamily Considered Commercial?

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Multifamily Statistics on Trends in Rent and Occupancy

Fact 6: Average Rent Growth Hits 1.2% in Q2 2025

In Q2 2025, the average effective rent growth across U.S. multifamily properties rose 1.2% year over year, according to CBRE

That may sound modest, but after a period of slow growth, this uptick signals a shift back toward stronger rent increases. It means landlords are gaining pricing power again, especially in markets where demand is outpacing new supply.

For renters, this may mean tighter budgets and more pressure if wages don’t keep pace. For investors, the increase offers an opportunity to improve returns, especially in markets where occupancy is strong and upgrades are possible.

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Fact 7: Northern New Jersey Posts 7.7% Rent Growth

In Q1 2025, Northern New Jersey was the top rent growth market in the U.S., with average rents reaching $2,686, up 7.7% year-over-year. (Arbor report)

This shows that some markets still have a lot of room to grow, even while national averages remain modest. In places with strong employment, transportation links, or new development, rent increases can be much higher.

Investors who spot these “hot zip codes” early can benefit by buying before the surge becomes obvious to everyone else. For property owners already in high-growth areas, it’s a chance to manage upgrades and pricing carefully to capture more value.

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Fact 8: National Vacancy Rates Fall to 4.1%

By Q2 2025, the U.S. multifamily vacancy rate fell to 4.1%, as demand outpaced new deliveries.

A vacancy rate this low means most apartments are occupied, and there is little slack in the system. For landlords, that means fewer empty units and more consistent rent revenue.

But it also means competition is stiff. To attract tenants, properties need to stand out in terms of amenities, maintenance, and tenant experience. Owners in highly occupied markets will need to stay sharp to defend their occupancy.

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Fact 9: Over 940,000 Units Are Under Construction Nationwide

As of early 2025, there were over 940,000 multifamily units under construction across the U.S., the highest level in decades according to The National Multifamily housing Council

This shows just how much confidence developers and investors have in the rental market.

Even with high interest rates and construction costs, the sheer volume of projects highlights the expectation that demand will remain strong.

For renters, this means more options may be on the way in certain markets, which could help ease affordability pressures.

For investors, it also signals that competition may increase in the near future, making it even more important to focus on location, amenities, and tenant experience.

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Fact 10: Demand Surpasses Supply by 131,151 Units Over 12 Months

Over a recent 12-month period, demand outpaced supply by 131,151 units, even with record-high numbers of new apartments being built. (United States Multifamily Capital Markets Report)

This tells us that more people moved into apartments than developers were able to deliver to the market.

Even as cranes filled the skylines and projects opened across major cities, renters claimed new units faster than they became available. That kind of demand is a strong sign that multifamily housing remains one of the most resilient parts of the real estate market.

For investors, this gap is encouraging. It suggests there is still plenty of room for growth, particularly in cities where construction pipelines are thinner or where population growth is strongest.

High demand paired with limited supply often leads to stronger rent growth and lower vacancy rates, making it a favorable environment for multifamily owners.

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Multifamily Housing Statistics on Investor and Financing Insights

Fact 11: Sales Volume Reached $30 Billion in Q1 2025

In the first quarter of 2025, U.S. multifamily investment sales volume hit $30.0 billion, a 35.5% increase from the same period last year.

This jump shows that investors are getting back into the market after a slower stretch. More deals happening means more confidence in performance, pricing, and the future of rental demand.

For someone evaluating properties, stronger sales volume means there is more data to compare deals, more competition to consider, and more liquidity — meaning it's easier to buy or sell when the time is right.

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Fact 12: Average Going-In Cap Rate for Core Assets Held at 4.90%

In Q4 2024, the average going-in cap rate for core multifamily assets remained near 4.90%, while exit cap rates stayed around 5.05%.

A cap rate (short for capitalization rate) is a simple way to measure a property’s potential return. It’s calculated by dividing the property’s net operating income (NOI) by its purchase price.

For example, if a building earns $100,000 a year in NOI and costs $2 million to buy, the cap rate is 5%. Lower cap rates often mean the property is considered safer but with lower returns, while higher cap rates usually signal higher risk but potentially higher rewards.

This stability in cap rates shows that even as financing costs and interest rates rise, investor expectations for return haven’t shifted dramatically for prime properties. Core assets (those in strong locations and with predictable income), retain their appeal.

For potential investors, this fact is a reminder to pay attention to quality and predictability. Deals with weaker fundamentals or in riskier markets may need to offer higher cap rates (i.e., more return) to balance out their added risk.

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Fact 13: Multifamily Underwriting Assumptions Remain Consistent

In Q4 2024, underwriting metrics aside from cap rates saw little change. Core unlevered IRR targets increased slightly to 7.76%, while underwriting spread assumptions (cap rate vs. exit cap rate) stayed fairly tight. (CBRE)

For those new to real estate, underwriting is the process investors and lenders use to evaluate whether a property is a good deal. It involves making assumptions about things like rent growth, expenses, financing costs, and the eventual resale value of the property.

These numbers help determine whether the investment is likely to meet return goals.

The fact that underwriting assumptions are holding steady means the market is seen as stable rather than unpredictable.

Lenders and investors aren’t having to make drastic changes to their models, which makes planning easier. For a multifamily investor, this translates into more reliable financing options, clearer expectations for returns, and less uncertainty when running the numbers on a new deal.

This consistency suggests that investors and lenders are viewing the market as stable, not one that’s swinging wildly. It also means deals are being run with conservative expectations, which helps protect against surprises.

For a multifamily investor, stable underwriting assumptions mean you can better plan your financing, your returns, and your exit strategy. It reduces guesswork in your projections.

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Fact 14: Multifamily Mortgage Debt Reached $2.1 Trillion in 2024

By the end of 2024, outstanding multifamily mortgage debt hit $2.1 trillion, making it one of the largest categories of commercial real estate debt in the U.S. (Mortgage Bankers Association Report)

This huge number shows just how much capital is tied up in the multifamily sector.

Lenders see apartments as relatively safe because rental demand tends to remain steady, even when other parts of real estate slow down. That’s why so much financing continues to flow into this asset class.

For investors, this means financing is widely available compared to some other types of real estate. Strong lending activity also helps keep the market liquid, meaning it’s generally easier to buy or sell multifamily properties than more specialized assets like hotels or retail centers.

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Fact 15: Multifamily Loan Delinquencies Stay Exceptionally Low

As of late 2024, multifamily loan delinquency rates were below 1%, far lower than most other commercial property types.

A delinquency rate measures how many borrowers are falling behind on their mortgage payments.

In multifamily, the number is extremely low, which signals that properties are continuing to generate enough rental income to cover their loans. Compared to office or retail properties, where delinquencies have been rising, multifamily has stayed much more resilient.

For investors, this low delinquency rate is a sign of strength and stability. It reassures lenders too, which is why financing is more available for apartments than for riskier sectors. For anyone entering the market, it’s an important reminder that multifamily properties are considered one of the safest bets in commercial real estate.

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Multifamily Statistics on Demographics and Tenant Behavior

Fact 16: 54% of Renters Renewed Leases in First Half of 2024

Among renters whose leases expired in the first half of 2024, 54.0% signed renewal leases, slightly above the 2015-2019 average of 52.2%. (Institutional Insights / IPA)

This means more than half of renters chose to stay instead of moving out when their leases were up.

Even though renewal rates can fluctuate over time, this figure shows that many renters see value in staying put.

For property owners and managers, a renewal rate above 50% is a positive signal.

It suggests that tenants are satisfied enough to stay, which reduces turnover costs like marketing, downtime, and unit turnover repairs. Tracking and improving renewal rates like this is one of the best ways to maintain stable income over time.

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Fact 17: Millennials Make Up About 48% of Multifamily Renters

Millennials now represent roughly 48% of all multifamily renters.

That generation is now in their late 20s to early 40s, prime renters who value flexibility, amenities, and urban lifestyles. They drive much of the demand in inner cities and transit-oriented neighborhoods.

For property owners, this means designing units and amenities to match what millennials want, like strong internet, fitness spaces, eco features, and walkable neighborhoods. It also means marketing in ways that appeal to younger renters.

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Fact 18: Over 70% of Multifamily Residents Are Employed Full Time

More than 70% of residents in multifamily housing are employed full time.

This suggests that most renters are not casual or temporary tenants — they are working people looking for stable, long-term housing. It strengthens the idea that multifamily units are part of everyday life, not temporary fixes.

For investors, this is reassuring. A tenant base with stable income is less risky. It also means that locations with employment growth tend to support stronger rent demand.

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Fact 19: Median Age of Multifamily Renters Is About 34 Years

The median age of those living in multifamily rental units is around 34 years old.

This middle-age range suggests many renters are in the workforce, possibly starting families, but still favoring renting for flexibility or affordability. They represent a stable market segment.

Understanding age helps with design, amenities, and services. Units near transit, social spaces, and child-friendly features may appeal more. It also helps forecast how preferences might change over time as demographics shift.

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Fact 20: 47.1% of Rental Households Live in Multifamily Properties

Nearly 47.1% of U.S. rental households reside in multifamily properties. That means almost half of all renters choose apartments or buildings with multiple units instead of houses or duplexes. This highlights how central multifamily is to rental housing in America.

For investors and developers, it shows that multifamily isn’t a niche, it’s mainstream. It also means that trends affecting renters (like wages, transportation, and preferences) heavily influence the multifamily sector.

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The Future of Multifamily

https://www.rentana.io/demo — Rentana: AI Reporting & Analytics Tool for Multifamily

Fact 21: U.S. Will Need 4.3 Million More Apartments by 2035

According to the National Multifamily Housing Council, the U.S. will need to build 4.3 million additional apartments by 2035 to meet demand. (NMHC reports)

This projection highlights how much pressure population growth and household formation will put on the housing market. Without new supply, affordability challenges are expected to get worse.

For investors, it suggests long-term opportunity. The need for more units ensures multifamily housing will remain a critical part of the U.S. economy for decades to come.

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Fact 22: 2025 Deliveries Expected to Exceed 500,000 Units

Industry forecasts expect over 500,000 new multifamily units to be delivered in 2025, the most in nearly 40 years.

This surge reflects the building boom of recent years finally reaching completion. Renters in many cities will see new options entering the market, which could temporarily cool rent growth.

For property owners, this means preparing for more competition in the short term. For renters, it may provide a little relief from tight vacancy rates.

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Fact 23: Affordability Remains the Top Challenge

As of 2024, half of all renter households spend more than 30% of their income on housing, a level considered cost-burdened. (Harvard JCHS report)

This fact underscores the affordability crisis that continues to grow. Even as new apartments come online, many are luxury units, leaving middle-income renters struggling.

For policymakers and investors, affordability will remain a central issue. Solutions may include more public-private partnerships, tax incentives, or workforce housing projects.

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Fact 24: Technology Adoption in Multifamily Keeps Rising

Surveys show that over 80% of property managers plan to increase spending on technology in the next three years, with a focus on AI, automation, and analytics. (Industry trend data)

This shift is transforming multifamily into a data-driven industry. From predictive rent forecasting to tenant portals and energy management systems, technology is changing how properties are run and how decisions are made. Instead of relying only on spreadsheets or gut instinct, managers and owners now have tools that can analyze trends and anticipate changes before they happen.

Platforms like Rentana take this a step further. Rentana combines market data, comps, and portfolio performance into one system, giving owners and investors AI-powered forecasts and clear insights. By using technology like Rentana, property teams can stay ahead of market shifts, set smarter rents, and manage occupancy more effectively, turning technology adoption into a direct advantage in performance and profitability.

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Fact 25: Green Building Will Drive Future Value

By 2030, nearly all new multifamily projects are expected to include sustainability features, such as energy-efficient systems or green certifications. (Urban Land Institute forecast)

This isn’t only about environmental impact. Renters are increasingly drawn to eco-friendly communities, and investors are finding that green properties command higher rents and lower operating costs.

For multifamily owners, going green will no longer be optional. It will be a competitive requirement to attract tenants and maintain long-term property value.

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Conclusion on Multifamily Housing Statistics

What do these numbers tell us about the future of housing in America? That the future of multifamily will be shaped by numbers, technology, and the people who bring them together.

The demand is growing and the market is evolving quickly. Tools like Rentana show how revenue intelligence and AI can help multifamily owners and investors make smarter choices, forecast with confidence, and keep properties performing at their best. Multifamily housing is more than an asset class. It is becoming one of the most important foundations of long-term financial growth and community living.

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