Report Overview

United States Multifamily Market – Industry Trends & Forecast Report, 2031

United States Multifamily Market size was estimated at USD 321.13 billion in 2024. During the forecast period between 2025 and 2031, United States Multifamily Market size is projected to grow at a CAGR of 7.47% reaching a value of USD 531.73 billion by 2031. The Multifamily Market in United States is driven by strong urbanization trends, an increasing demand for rental housing, and a growing preference for flexible living. Millennials and Gen Z are prioritizing mobility and convenience, boosting demand for multifamily properties in vibrant urban centers. Rising housing prices and mortgage rates are steering more Americans towards rentals. Additionally, institutional investors are capitalizing on resilient returns and stability in the multifamily sector. Government incentives for affordable housing and sustainable building practices are further propelling growth. The adaptability of market players to evolving lifestyles and economic shifts positions United States Multifamily Market as a lucrative and resilient investment opportunity.

Multifamily – Overview

Multifamily properties refer to residential buildings designed to house multiple families within separate units under one roof. Examples include apartments, condominiums, townhomes, and duplexes. These properties are a cornerstone of the United States housing market, offering a range of options from affordable housing to luxury accommodations. The multifamily sector has gained prominence, due to rising urbanization, flexibility in living arrangements, and a surging demand for rental housing. Catering to various demographics, such as millennials, Gen Z, and downsizing baby boomers, multifamily properties combine convenience, community-oriented living, and, often, modern amenities, making them a compelling choice for both residents and real estate investors.

United States Multifamily Market

Growth Drivers

Rising Demand for Rental Housing

United States Multifamily Market is witnessing extraordinary growth, due to a surging demand for rental housing. Increasing home prices, elevated mortgage rates, and economic uncertainties are prompting many Americans to opt for renting. Millennials and Gen Z, drawn to flexibility and urban lifestyles, are major contributors to this growing trend, while Baby Boomers downsizing their homes further bolsters the demand. The flourishing build-to-rent segment addresses the needs of families desiring rental homes with shared amenities. In 2024, rental housing demand reached unprecedented levels, with quarterly demand reaching 231,000 units and annual absorption of more than 487,000 units. These dynamics highlight the resilience and investment potential of the multifamily sector, driven by evolving affordability issues and lifestyle shifts.

Challenges

High Construction Costs

United States Multifamily Market is grappling with escalating construction costs, hindering new developments and exacerbating housing affordability issues. Major factors, such as soaring lumber prices—up 45% in recent months—alongside significant increases in electrical components (15%) and exterior finishes (14%), are inflating project budgets. Labor shortages further compound the problem, with 63% of developers reporting decreased labor availability, leading to higher wages and project delays. Additionally, regulatory compliance contributes approximately 32% to development costs, intensifying financial pressures. These challenges could deter investments in affordable housing, limiting supply and driving up rents, thereby impacting both developers and residents.

Impact of Escalating Geopolitical Tensions on United States Multifamily Market

Escalating geopolitical tensions, particularly the Russia-Ukraine war, are reshaping the United States Multifamily Market, presenting both challenges and opportunities for investors. The conflict has contributed to supply chain disruptions, rising material costs, and a shortage of skilled labor, which have slowed construction and increased development expenses. Higher oil, gas, and energy prices have further escalated construction and maintenance costs, leading to increased rents and potential affordability concerns. Despite these challenges, national vacancy rates dropped to 5.2% by the end of 2024, highlighting strong demand for multifamily properties as United States real estate remains a safe-haven asset amid global uncertainties. However, geopolitical instability has also introduced financing hurdles, impacting development pipelines. Investors must strategically balance risk and reward, staying agile in a market where cautious decision-making and careful navigation of economic stability are critical.

United States Multifamily Market

Segmental Coverage

United States Multifamily Market – By Type of Housing

By type of housing, United States Multifamily Market is divided into Luxury Apartments, Workforce Housing, and Build-to-Rent segments. Luxury Apartments represent the largest segment, characterized by high-end amenities and premium pricing. However, the segment is currently facing challenges due to elevated vacancy rates. The oversupply of luxury apartments is attributed to a focus on constructing expensive units, leading to a surplus that exceeds current demand. Meanwhile, more affordable housing options exhibit lower vacancy rates, highlighting a growing need for developments that cater to a broader range of income levels.

United States Multifamily Market – By Location

Based on location, United States Multifamily Market is divided into Urban, Suburban, Rural segments. The urban segment holds the largest share, with approximately 67% of multifamily development occurring within large metropolitan areas. Suburban areas account for about 27% of such developments, while rural regions comprise 6.1%. This distribution reflects a strong preference for urban living, driven by employment opportunities, amenities, and lifestyle choices.

United States Multifamily Market – By Asset Class

On the basis of asset class, United States Multifamily Market is divided into Class A, Class B, Class C segments. Class C properties, typically older buildings with fewer amenities, constitute the largest segment. Class B properties offer moderate amenities and rents, while Class A properties are characterized by high-end features and premium rents.

Competitive Landscape

Major companies operating in United States Multifamily Market include Mid-America Apartment Communities (MAA), Morgan Properties, AvalonBay Communities, Greystar Real Estate Partners, Cortland, Equity Residential, Camden Property Trust, Essex Property Trust, UDR, Inc., Lincoln Property Company, and Bozzuto Group. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Recent Developments

• In January 2025 - CP Capital, a real estate investment manager focusing in multifamily investing, stated that it had sold Hathon, a 190-unit apartment community in Medway, Massachusetts.

Scope of the Report

By Type of Housing

• • Luxury Apartments

  • Workforce Housing

  • Build-to-Rent

By Location

• • Urban

  • Suburban

  • Rural

By Asset Class

• • Class A

  • Class B

  • Class C

1. Research Framework
   1. Research Objective
   2. Product Overview
   3. Market Segmentation
2. Executive Summary
3. United States Multifamily Market Insights
   1. Industry Value Chain Analysis
   2. DROC Analysis
      1. Drivers
         1. Increasing Urbanization Trends
         2. Rising Demand for Rental Housing
         3. Shift toward Sustainable and Eco-friendly Living
      2. Restraints
         1. High Construction Costs
         2. Addressing Affordability Concerns
         3. Managing Supply and Demand Imbalances  
      3. Opportunities
         1. Integration of Smart Home Technologies
         2. Expansion in Suburban Multifamily Developments
      4. Challenges
         1. Regulatory and Zoning Challenges
         2. Limited Availability of Land
   3. Technological Advancements/Recent Developments
   4. Regulatory Framework
   5. Porter’s Five Forces Analysis
      1. Bargaining Power of Suppliers
      2. Bargaining Power of Buyers
      3. Threat of New Entrants
      4. Threat of Substitutes
      5. Intensity of Rivalry
4. United States Multifamily Market: Marketing Strategies
5. United States Multifamily Market: Pricing Analysis
6. United States Multifamily Market Overview
   1. Market Size & Forecast, 2019–2031
      1. By Value (USD Billion)
   2. Market Share & Forecast
      1. By Type of Housing
         1. Luxury Apartments
         2. Workforce Housing
         3. Build-to-Rent
      2. By Location
         1. Urban
         2. Suburban
         3. Rural
      3. By Asset Class
         1. Class A
         2. Class B
         3. Class C
7. Competitive Landscape
   1. List of Key Players and Their Offerings
   2. United States Multifamily Market Share Analysis, 2024
      1. Competitive Benchmarking, By Operating Parameters
8. 3. Key Strategic Developments (Mergers, Acquisitions, Partnerships)
9. Impact of Escalating Geopolitical Tensions on United States Multifamily Market
10. Company Profiles (Company Overview, Financial Matrix, Competitive Landscape, Key Personnel, Key Competitors, Contact Address, Strategic Outlook, SWOT Analysis)
    1. Mid-America Apartment Communities (MAA)
    2. Morgan Properties
    3. AvalonBay Communities
    4. Greystar Real Estate Partners
    5. Cortland
    6. Equity Residential
    7. Camden Property Trust
    8. Essex Property Trust
    9. UDR, Inc.
    10. Lincoln Property Company
    11. Bozzuto Group
11. Key Strategic Recommendations
12. Research Methodology
    1. Qualitative Research
       1. Primary & Secondary Research
    2. Quantitative Research
    3.  Market Breakdown & Data Triangulation
       1.  Secondary Research
       2.  Primary Research
    4.  Breakdown of Primary Research Respondents, By Region
    5.  Assumptions & Limitations

*Financial information of non-listed companies can be provided as per availability.

**The segmentation and the companies are subject to modifications based on in-depth secondary research for the final deliverable.

List of Figures

Figure 1       United States Multifamily Segmentation                           

Figure 2       United States Multifamily Market Value Chain Analysis               

Figure 3       Company Market Share Analysis, 2024                  

Figure 4       United States Multifamily Market Size, By Value (USD Billion), 2019–2031                        

Figure 5       United States Multifamily Market Share, By Type of Housing, By Value, 2019–2031                            

Figure 6       United States Multifamily Market Share, By Location, By Value, 2019–2031                                                   

Figure 7       United States Multifamily Market Share, By Asset Class, By Value, 2019–2031

List of Tables

Table 1         United States Multifamily Market Share, By Type of Housing, By Value, 2019–2031                            

Table 2         United States Multifamily Market Share, By Location, By Value, 2019–2031                                                   

Table 3         United States Multifamily Market Share, By Asset Class, By Value, 2019–2031

Table 4         Mid-America Apartment Communities (MAA) Company Overview

Table 5         Mid-America Apartment Communities (MAA) Financial Overview

Table 6         Morgan Properties Company Overview

Table 7         Morgan Properties Financial Overview

Table 8         AvalonBay Communities Company Overview

Table 9         AvalonBay Communities Financial Overview

Table 10       Greystar Real Estate Partners Company Overview

Table 11       Greystar Real Estate Partners Financial Overview

Table 12       Cortland Company Overview

Table 13       Cortland Financial Overview

Table 14       Equity Residential Company Overview

Table 15       Equity Residential Financial Overview

Table 16       Camden Property Trust Company Overview

Table 17       Camden Property Trust Financial Overview

Table 18       Essex Property Trust Company Overview

Table 19       Essex Property Trust Financial Overview

Table 20       UDR, Inc. Company Overview

Table 21       UDR, Inc. Financial Overview

Table 22       Lincoln Property Company: Company Overview

Table 23       Lincoln Property Company Financial Overview

Table 24       Bozzuto Group Company Overview

Table 25       Bozzuto Group Financial Overview