U.S. Multifamily Market Report | Avison Young | Q4 2025

Market Overview

The U.S. multifamily market closed Q4 2025 with clear signs of rebalancing. New construction deliveries fell 24.1% over the prior 12 months — with another 20% decline projected — while 87.7% of 2025 supply was absorbed, narrowing the delivery-absorption gap to its lowest point since 2021. Ownership costs continued to support renter demand, with mortgage payments running 36.7% above average effective rents. On the investment side, sales volume rose 5.6% year-over-year as Treasury rates declined, and institutions and REITs captured their largest acquisition share since 2019 at 36.6%.

About Avison Young

Avison Young is a global commercial real estate advisory and investment management firm providing research, brokerage, and capital markets services across major U.S. and international markets. Their Q4 2025 U.S. multifamily market report tracks occupancy, effective rents, deliveries, absorption, and investment sales activity to help owners, developers, and investors assess timing and positioning. To read the full report, click here.