Multifamily Set to Take Off in 2025

After 2+ years of apartment supply dominating the multifamily market, surging demand and the receding wave of newly-built apartments will bring greater balance to the market in 2025. With fundamentals so strong, multifamily investment interest should also increase in the coming year, but recent reporting has found that investment activity remains below historical averages. Stubbornly-high ten-year treasury yields represent a persistent financing challenge, but the lending environment could improve as the Federal Reserve continues along its path of lower interest rates.

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Sources discussed in this episode:

Bureau of Labor Statistics: “Consumer Price Index, October 2024” - https://www.bls.gov/charts/consumer-price-index/consumer-price-index-by-category-line-chart.htm

Newmark: “Q3 2024 Multifamily Capital Markets: [Investors Subdued, Fundamentals Improve]” - https://www.nmrk.com/insights/market-report/united-states-multifamily-capital-markets-report

Cushman & Wakefield: ​​Top Trends Across Cushman & Wakefield’s Multifamily Portfolio: Seasonal Cooldowns and “a very healthy renter pool”​ -

https://www.cushmanwakefield.com/en/united-states/insights/top-trends-across-cw-multifamily-portfolio

Cushman & Wakefield: ​​Top Trends Across Cushman & Wakefield’s Multifamily Portfolio: Seasonal Cooldowns and “a very healthy renter pool”​ -

https://www.cushmanwakefield.com/en/united-states/insights/top-trends-across-cw-multifamily-portfolio

Fannie Mae: “Fed Cuts Rates in Second Consecutive Meeting as Manufacturing and Services Surveys Diverge” - https://www.fanniemae.com/research-and-insights/forecast/fed-cuts-rates-second-consecutive-meeting-manufacturing-and-services-surveys-diverge

NAHB: “A Rate Cut from the Fed: What Will the Terminal Rate Be?” - https://eyeonhousing.org/2024/11/a-rate-cut-from-the-fed-what-will-the-terminal-rate-be/

RealPage: “Some Perspective on the 50-Year Peak in Apartment Supply Volumes” - https://www.realpage.com/analytics/apartment-supply-peak-2024/

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DISCLAIMERS: This podcast does not constitute professional financial advice and is for educational/entertainment purposes only. This podcast is not an offer to invest. Any offering would be made through a private placement memorandum and would be limited to accredited investors.