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Multifamily Vacancy Climbs as Supply Outpaces Demand
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📈 Data Point
Multifamily Vacancy Climbs as Supply Outpaces Demand
CBRE’s Q3 2025 report shows the U.S. multifamily vacancy rate has reached 4.4 percent, the highest since 2021. Over 140,000 new units were delivered this quarter, exceeding absorption levels and softening rent growth to 0.5 percent year-over-year. While demand remains steady, elevated construction pipelines in major metros are keeping vacancies above the pre-pandemic average. Investors are expected to watch markets with slowing deliveries more closely going into 2026. Read more.
🧭 Market Watch
Baltimore’s Multifamily Surge Outpaces National Average
Nearly 39 percent of all new homes built in the Baltimore-Columbia-Towson metro area this year are multifamily units, according to Citybiz. The U.S. average stands at roughly 33 percent. The rise highlights Baltimore’s growing attraction for renters and developers seeking affordability compared with nearby Washington, D.C. Strong job growth in healthcare and logistics continues to fuel this shift toward apartment and condo construction across the region.
🧾 Rule of the Day
Effective Gross Income Multiplier (EGIM)
EGIM helps investors compare properties quickly by measuring price against income.
Formula: EGIM = Property Price ÷ Effective Gross Income
Unlike cap rate, EGIM doesn’t account for expenses, making it ideal for early screening. A lower EGIM generally indicates better income potential per dollar spent—but it should always be paired with operating cost analysis before making a final decision.
🌱 Green Build
LEED Certification Brings Sustainability to Affordable Housing in St. Paul
A new initiative in St. Paul, Minnesota, shows that green design can coexist with affordability. Developers are using LEED certification to cut energy use, lower water consumption, and reduce long-term utility costs for residents. The project also focuses on improving indoor air quality and resilience. It demonstrates how sustainable design can deliver both environmental and social benefits in community housing. Know more.
🏘 Deal Radar
Boone, IA This 24-unit apartment community offers one and two-bedroom units spread across two buildings. It also comes with 12 detached garages and ample surface parking | Lincoln, NE Built in 1972, this property has 18 units spread across three stories in a single building. It is also centrally located, within minutes of shopping, dining, and entertainment. | Colorado Springs, CO Bonfoy Apartments is located in a central location in Colorado Springs, making it an attractive option. It has 32 units of studio, one, and two-bedroom units. |
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