The Multifamily Construction Boom is Over — and That's Bullish for the Future.

📉 The Multifamily Construction Boom is Over — and That's Bullish for the Future.

2024 marked the tail end of a historic multifamily construction boom. New deliveries are hitting the market now, causing headlines about rent softening and oversupply in some metros.

But here's what the headlines aren’t telling you:

➡️ New multifamily permits are down 27.1% from pandemic highs

🔗 GlobeSt, May 2025

https://www.globest.com/2025/05/06/multifamily-housing-permits-fall-to-lowest-levels-since-pandemic-in-most-us-cities/

➡️ Completions have far outpaced new starts — by over 250,000 units in 2024

🔗 Jay Parsons, Feb 2025

https://www.linkedin.com/posts/jay-parsons-a7a6656_the-final-numbers-are-in-and-in-2024-multifamily-activity-7287454668761309184-wcGC/

➡️ Most major U.S. metros are seeing construction pullbacks

🔗 Commercial Real Estate Daily, May 2025

https://www.credaily.com/briefs/multifamily-permits-drop-as-construction-slows-nationwide/

➡️ State housing agencies are warning of a supply gap by 2026

🔗 Stateline, May 2025

https://stateline.org/2025/05/01/the-number-of-new-apartments-is-at-a-50-year-high-but-states-expect-a-slowdown/

➡️ Even Redfin shows permits are now below pre-pandemic levels

🔗 Redfin, May 2025

https://www.redfin.com/news/multifamily-construction-permits-2025/

🔁 What does this mean? While current supply may feel abundant, the pipeline is drying up fast. And because it takes 2–3 years to entitle and build, we’re heading toward a structural shortfall.

📈 In select markets — especially supply-constrained cities — this means rents will rise, and multifamily will regain its momentum as a top-performing asset class.

At Sharpline, we invest with a wide lens. We analyze beyond the current headlines and position our capital today for where the market will be tomorrow. We see the future clearly — and it's one where well-located, well-managed multifamily assets thrive.

If you’re interested in staying ahead of the next wave in multifamily, let’s connect.

#MultifamilyInvesting #SharplineCommunities #CRE #RealEstateInvesting #Apartments #HousingCrisis #SupplyAndDemand #RentGrowth #ConstructionTrends #MultifamilyDevelopment

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