06/03/2026
According to CoStar, multifamily apartment construction starts fell to roughly 55,000 units nationwide in Q1 2026:
๐น Starts declined 73% from the 2022 peak, reaching the lowest quarterly level since 2011.
๐น Developers continue pulling back due to elevated financing costs, slower rent growth, and rising construction expenses.
๐น While apartment completions remain elevated today, the future development pipeline is shrinking.
๐น As fewer new projects break ground, future supply pressure could ease across many apartment markets.
For investors, the data points to a potential long-term tailwind for existing multifamily assets: fewer competing new deliveries in the years ahead as the development pipeline contracts.
At Faris Capital Partners, we continue to monitor supply trends closely as the multifamily market evolves.
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