The article “Resilient Demand Fuels Hope for Multifamily Recovery in 2025” by Fogelman SVP of Investments Mike Aiken, published on January 24, 2025, in Multifamily Executive, discusses the multifamily housing market’s outlook for 2025. Key points include:
- Market Recovery and Investor Interest: The multifamily market reached its low point between late 2023 and early 2024. Since then, recovery has been uneven, with capital markets functioning efficiently for only a limited segment of multifamily products. Properties in top-tier submarkets of major cities like Atlanta, Dallas-Fort Worth, and Raleigh-Durham have attracted strong demand from institutional buyers, leading to increased asset prices. In contrast, assets outside these prime areas have seen less favorable outcomes for sellers. multifamilyexecutive.com
- Challenges Ahead: The near-term outlook is challenging, with an anticipated difficult winter leasing season in many cities and fixed-rate loan interest rates remaining above 5%. However, there is optimism for improvement later in the year as the current oversupply is absorbed, bringing supply and demand into better balance. multifamilyexecutive.com
- Investment Strategies: Investors are advised to focus on high-quality value-add assets in strong suburban locations, particularly in the Sun Belt and Midwest regions. Analyzing submarket supply trends can help identify areas likely to strengthen over the next 12 months, offering above-average performance in the coming years. multifamilyexecutive.com
In summary, while the multifamily market faces near-term challenges, strategic investments and a focus on resilient submarkets provide a pathway for cautious optimism and recovery in 2025.
To read the full article, visit Multifamily Executive.
