The demand from renters for multifamily units remains strong across the United States, according to the latest research from Lee & Associates.

In its second quarter 2025 multifamily report, Lee & Associates said that net absorption during the quarter in the United States totaled 136,007 units. That big number isn’t unusual: Lee & Associates said that during the last six quarters, renters have leased 816,814 multifamily units across the country.

This strong leasing activity has brought vacancy rates down. The report says that the U.S. multifamily vacancy rate fell 10 basis points to 8.1% as of the end of the second quarter. This largely due to the rising demand for Class-A apartment units, a segment of the multifamily market in which demand still exceeds supply.

U.S. rental demand stood at 267,273 units in the second quarter. This follows the leasing of 548,911 rental units in 2024, the second-highest amount on record. This can be partly attributed to the members of Gen Z who are entering the prime apartment rental age. At the same time, a growing number of Baby Boomers are reaching an age in which renting is becoming a good option.

New construction activity has tapered off, though, in this sector. Lee & Associates reported that net apartment deliveries have declined for three consecutive quarters, falling nearly 30% to less than 130,000 units in the first quarter. And forecasts show that fewer than 80,000 multifamily units are scheduled for delivery in the fourth quarter of this year.