Apartment completions set for multi-decade high

The jump in multifamily housing starts in the first half of 2022 implies a surge in completions over the next couple of years to a multi-decade high. But while rental demand is now moderating, the continued lack of homes for sale means we doubt it will see a sharp decline. Alongside a slowdown in construction, that will prevent a sharp rise in the vacancy rate, which we think will reach 5% by end-23.

In view of the wider interest, we are also sending this US Housing Market Updateto clients of our US Commercial Property Service.