2025 Multifamily Outlook and Leading Investment Markets
2025 Multifamily Market Outlook: Key Trends and Top Metros
Multifamily Demand Is Supported By Broader Housing Trends
High homeownership costs and elevated mortgage rates are steering more housing demand toward apartments
Lease renewal rates are strengthening, supported by the affordability gap between renting and owning and home
While concessions are rising, steady job growth will continue to bolster apartment absorption
Construction Pipeline Slows, Easing Oversupply Concerns
Multifamily completions are forecast to decline to 410,000 units in 2025, a significant decline from 2024
Rising costs for construction labor and materials are limiting the ability for new development projects to get off the ground
Slowing construction amid solid demand will allow the national vacancy rate to fall to 5.1% in 2025
Top Multifamily Markets Offer Significant Growth Potential
Miami ranks first (#1) on the 2025 Multifamily Investment Forecast, upheld by strong demographic drivers, above-average rent growth and a declining vacancy rate
Dallas-Fort Worth places second (#2), with robust job growth and a thinning pipeline positioning the market for future gains
Orlando comes in at third (#3), with nation-leading rent growth projected for 2025
*Forecast
Sources: Marcus & Millichap Research Services, RealPage, Inc.
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