Construction Is Slowing Down. Rents Are Poised to Rise.

🚧 Construction Is Slowing Down. Rents Are Poised to Rise. 📈

Over the past two years, rising interest rates and now new tariffs have left many developers sidelined. Construction starts have declined meaningfully year-over-year. And while permits saw a slight uptick recently, the volume of actual starts is still far below previous highs.

This chart tells a clear story: after 2026, net deliveries drop significantly. Meanwhile, absorption stabilizes and even strengthens — a sign that demand for multifamily living is here to stay.

Vacancy rates are forecasted to fall below 8% and continue dropping. That’s a recipe for rent growth.

📊 What’s different this cycle? The consistency of demand. In past downturns, absorption and deliveries were more volitile. Not this time.

In a landscape where new supply is constrained and population growth in certain markets remains steady, multifamily remains one of the strongest long-term investment plays.

If you're waiting for the "perfect time" to get in — remember, the best deals are made before the headlines catch up.

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