Multifamily Market Pulse – Demand vs. Supply (Top 20 MSAs, 2025 Q3)

Dennis Lee
Sep 24
2 min read

Where renter demand meets the bulldozer.

Every quarter, we track the tension between renters flocking into metros and the cranes rising above them. This Demand vs. Supply pulse reveals which markets are primed for durable rent growth — and which ones might be sprinting toward absorption risk.

Market Stadium introduces the Multifamily Demand & Supply Index — a simple, equally weighted score (0–100) that benchmarks U.S. metros.

Demand Index: based on Net Migration and Population Growth
Supply Index: based on 12-month Permits (5+ units), Multifamily % of Permits, and Construction Pipeline (2 years)

Both indices are nationally scaled (100 = top percentile). Together, they provide investors with a clear view of where renter demand is resilient — and whether new supply will amplify opportunities or create absorption risk.

📊 How to Read the Charts:

Top Graph (Demand/Supply Index): Shows the overall strength of demand or supply over time — the headline result investors care about.
Bottom Graph (Subcategory Factors): Breaks down the drivers behind each index.
- Demand → Net Migration, Population Growth
- Supply → Multifamily Permits, % of Permits in Multifamily, Construction Pipeline (next 2 years)

🔎 What the Data Shows

All 20 metros highlighted rank near the top nationally on renter demand. The key differentiator is how much supply pressure each market faces.

🟩 High Demand + Low Supply

Strong renter fundamentals with relatively limited new supply pipelines. These metros offer tighter conditions and stronger rent growth potential.

Amarillo (TX), Columbia (MO), Clarksville (TN-KY), Poughkeepsie (NY), Midland (TX)

⬜ Balanced

Demand remains healthy, but new supply is coming through at a measured pace. These metros tend to provide stability and steady absorption rather than extreme swings.

Salt Lake City (UT), Milwaukee (WI), Louisville (KY), Charlottesville (VA), Columbus (GA)

🟥 Watchlist (Supply Pressure)

Metros where new supply activity is heavier — whether through permitting, construction pipelines, or a high concentration of multifamily projects. Demand is still strong, but absorption and rent growth carry higher risk.