Why Apartment Demand Is Growing
It's no secret that the demand for apartments in the USA, from both the consumer and investor perspective, is growing . It's one of the reasons that I am so passionate about investing in the multifamily space. But have you ever wondered why the demand is so high and why it continues to grow?
The recent spike in demand isn't a fluke. It's the culmination of a multi-year buildup of deferred household formations, affordability challenges in the single-family housing market, and shifting demographic trends. From delayed life milestones during the pandemic to a growing preference for flexibility among younger workers and retirees alike, a diverse range of renter profiles is ...
Rents Are Roaring Back
After two years of cooling rents and an unprecedented wave of new apartment construction, the U.S. rental housing market is shifting again. According to a recent analysis highlighted by the New York Post, demand for apartments is surging back, signaling that the era of tenant-friendly conditions may be giving way to renewed landlord leverage. This […]
Immigration. Immigration is a significant driver of apartment demand , and levels tapered before the pandemic and have remained low. A reversal of this trend would significantly increase apartment demand . Texas, Florida and California. These three states account for 40% of future demand and will require 1.5 million new apartments by 2035.
Apartment Industry
Apartment demand and supply move together across who's renting and how new housing comes online. Millennials represent 45% of apartment renters, and Gen Z grew 20% from 2020 to 2023, reshaping unit needs.
Below are 10 things to know about future apartment demand from the soon-to-be released "U.S. Apartment Demand through 2035," published by Hoyt Advisory Services and Eigen10 Advisors, LLC, on behalf of the National Apartment Association (NAA) and the National Multifamily Housing Council (NMHC). 1. Apartment demand is expected to soften between 2022-2035 Approximately 3.7 million units will ...
Multifamily housing outlook
Multifamily Housing Affordability Shapes Multifamily Trends Deliveries are waning alongside sharply decelerating starts, while demand moderates amid slower job growth and reduced immigration. The growing affordability gap is driving migration to smaller cities and prompting policymakers at all levels to devise strategies to deliver more housing.
Subdued rent growth and record-breaking concessions from landlords are turning up in the market now as a result of a deluge of apartment construction completions last year. Builders responded to rising household formation and a surge of demand for housing during the pandemic, finishing more multifamily units in 2024 than any year since 1974.
U.S. Apartment Demand Remains Robust in First Half of 2025, Surpassing ...
Demand for market-rate apartments reached 379,000 units in the first half of 2025, outpacing supply in many metros. Greg Willett breaks down the key drivers and the markets leading the way.
