A brief excerpt:
From Moody’s Analytics Economists: Multifamily Performance Steadied, Office Stress Continued to Manifest, Retail Vacancy Declined, And Industrial Cooled Down
National multifamily vacancy stayed flat at 5.8%, the highest level on record since 2011. Supply side pressure was the main driver for the creep-up of vacancy since late 2022.
Moody’s Analytics (Reis) reported that the apartment vacancy rate was at 5.8% in Q3 2024, unchanged from an upwardly revised 5.8% in Q2, and up from the pandemic peak of 5.6% in Q1 2021. This is the highest vacancy rate since 2011. Note that asking rents are down slightly year-over-year.
This graph shows the apartment vacancy rate starting in 1980. (Annual rate before 1999, quarterly starting in 1999). Note: Moody’s Analytics is just for large cities.
There is much more in the article.