The national multifamily market has seen its vacancy rate rise over the last decade. New construction has expanded the national inventory by 26.6% over the period, lifting the national vacancy rate from 4.3% in the first quarter of 2016 to 6.8% over the first three months of 2026. While the country is at the tail end of the multifamily construction boom, data trends point to greater variation between Class A performance and classes B and C in recent years.
Prior to 2020, about 90% of annual apartment construction was Class A properties. As the construction boom has unwound, this share has retreated from its peak but remained elevated at 85% as of the first quarter of 2026. The record volume of Class A deliveries, peaking in 2024, has satura...