Top Trends Across Cushman & Wakefield’s Multifamily Portfolio
As one of the nation’s largest third-party property managers, Cushman & Wakefield Asset Services has access to unique data and insights not available from third-party sources. This information is invaluable to our clients. Using this proprietary data, we will explore trends across our portfolio and what they may mean for the year ahead.
Multifamily fundamentals improved heading into summer, both nationally and across our portfolio. Nationally, vacancy fell below 9% for the first time since 2024, as demand outpaced new supply for the first time since early 2022. Our portfolio tells a similar story, with occupancy, rent growth and leasing activity all up year over year (YOY). Class A continues to set the pace, but the gap with Class B and C is narrowing as the recovery broadens.
The Cushman & Wakefield Asset Services team manages over 144,000 units nationwide, making our team one of the largest third-party management providers in the country. This scale generates a wealth of data and analytics, which we share regularly through articles like this and our multifamily newsletter, Multifamily Digest. Because this data is proprietary to our clients, we do not share aggregate levels for most metrics. However, broader trends offer valuable insights into market performance.
Leasing Demand Improves Year-Over-Year
Occupancy Rebounds, and the Class Gap Is Closing
Our portfolio reflects the broader market's shift toward stronger fundamentals discussed in the U.S. Multifamily MarketBeat. Occupancy across our assets is running ahead of where it stood a year ago, with Class A up 38 basis points (bps) and Class B up 25 bps. Portfolio delinquency has also improved, down 18 bps, as income growth continues to outpace rent growth and keeps renters well-qualified across the quality spectrum.
Rent Growth Reaccelerates, and Trade-Outs Turn Positive
In our U.S. Multifamily MarketBeat, we observed national asking rents up 1.5% YOY in the second quarter, up from 1.1% in the first quarter, the first acceleration in roughly a year. Our portfolio moving in the same direction, with overall trade outs averaging nearly 2%. New lease trade outs turned positive across Class A and B units, a strong signal for the next phase of the cycle. The Northeast and Midwest led the gains, but momentum is building across our Sunbelt portfolio as demand rebounds and the supply pipeline dwindles. Renewal trade outs remain exceptionally healthy, led by Class A.
Concessions Retreat as Lease-Ups Stabilize
Concession usage across our Class A portfolio is down below 2.5%, consistent with the broader pullback in new supply. The construction pipeline nationally has fallen to its lowest level since 2013, leaving fewer new communities competing for renters with aggressive concession packages.
Across our portfolio, demand, occupancy, rent growth and concessions all moved in the same direction this period, consistent with the broader market's shift as the construction pipeline thins and demand catches up with supply.
With more than 144,000 units managed nationwide, the Cushman & Wakefield management team is constantly diving into the data gleaned from our boots-on-the-ground experience and expertise in operations. Looking at trends like these allows our clients to make smart decisions with their assets, monitor performance closely with a trusted management partner, as well as be predictive in their underwriting. We’re excited to see what the data shows us next quarter and look forward to sharing those insights.
