North America Multifamily Market Report | Lee & Associates | Q4 2025

Market Overview

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North America's multifamily market closed Q4 2025 with demand falling sharply from its recent pace. After seven consecutive quarters of net absorption exceeding 100,000 units, Q4 demand landed at just 33,498 units, the lowest reading in three years and a 19% year-over-year decline. Meanwhile, 102,599 units were delivered in the quarter alone, contributing to 520,082 completions for the year. The national vacancy rate finished at 8.5%, and rent growth slowed to 0.3% annually. Twenty-three of the top 50 markets posted negative rent growth. With the development cycle set to wind down through 2026, conditions may gradually rebalance.

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About Lee Associates

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Lee Associates is a nationwide commercial real estate brokerage serving investors, owners, and occupiers across property types. Their North America Q4 2025 multifamily market report tracks net absorption, vacancy, deliveries, and rent growth to help investors and owners assess current market conditions. To read the full report, click here.

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