The fundamentals behind multifamily real estate remain strong. Here’s what’s driving the sector in 2025:
- A structural housing shortage (3-5 million homes) continues to limit supply which bodes well for multifamily rent growth.
- High single-family home prices have widened the rent vs. own affordability gap.
- Multifamily construction starts are down 40% from the peak, setting up a meaningful decline in future deliveries.
- Investor interest has returned, with transaction activity increasing as prices stabilize and acquisitions occur below replacement cost.
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