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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