Under-construction pipeline prompts uptick but near-term supply will trail 2024-25 totals
SANTA BARBARA, Calif., Aug. 12, 2026 – Recent evaluation of the under-construction pipeline for multifamily units prompted Yardi® Matrix by 2.5% for 2026 and 1.3% for 2028, with the forecast for 2027 remaining basically unchanged from the Q1 forecast update.
The increase in the 2026 forecast does not represent a change in overall forecast expectations. “The number of units under construction and in prelease continues to decline, suggesting new supply in 2026 and 2027 will be below what was recorded in 2024 and 2025,” states a new bulletin from Yardi Matrix.
The modest increase forecast for 2028 reflects construction starts, which are about 20% higher year to date than the same period a year ago, and average completion times.
The near-term forecast assumes that current levels of employment and income growth, household formation, inflation and other economic factors will be largely unchanged.
See the complete forecast for construction starts and the under-construction pipeline for 2026-28 in the Yardi Matrix supply forecast bulletin for Q3 2026.
Yardi Matrix offers the industry’s most comprehensive market intelligence tool for investment professionals, equity investors, lenders and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, single-family rentals/ build to rent, affordable housing, student housing, self storage, office, industrial, retail and vacant land property types. Email [email protected], call (480) 663-1149 or visit yardimatrix.com to learn more.
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