The Future of Multifamily Investment and Finance

Property Management

If you’re a property manager who works with multifamily buildings, you may already have a broad-strokes understanding of the economic factors driving this sector. For example, you might have heard that 2024 saw a historically high volume of multifamily unit deliveries.

But when you know what’s in store for the multifamily sector, you’ll have the opportunity to account for these changes while managing your properties in 2025. On top of that, you’ll find it easier to make wise decisions if you invest in multifamily buildings this year.

Financial Expectations for the Multifamily Sector in 2025

According to Marcus & Millichap’s 2025 U.S. Multifamily Investment Forecast, property managers active in the multifamily sector this year should see:

A Construction Slowdown

Since last year’s multifamily unit delivery was ahead of demand, vacancy rates in the sector rose for the third year in a row. Now, this upward momentum appears to be slowing, which means multifamily construction should see a decline. Compared to 2024’s unit completions, 110,000 fewer units will be completed in 2025.

Growing Renter Demand

While multifamily construction is expected to decelerate in 2025, renter interest in units is increasing. This means multifamily supply and demand could become aligned, marking the first time this has happened in four years.