Research
SVN State of the Market Report 2025
MULTIFAMILY
Take a casual glance at Multifamily performance in 2024, and you could be forgiven for wincing a little. However, if you dig beneath the surface, the story of the Multifamily’s performance last year is nuanced — and there is a lot more strength to the sector than headline data suggests.
After rents and valuations soared during the immediate post-pandemic period, the Multifamily sector returned to Earth in 2023 and 2024, forcing operators in several regions to adjust to more modest returns amid an elevated interest rate regime. Moreover, a historic increase in new Multifamily housing supply proved to be the biggest foot on the sector’s brake pedal last year.
According to year-end data from the Census Bureau and Department of Housing and Urban Development, builders completed roughly 591,000 units nationally in 2024 — a pace not seen since Nixon’s last year in office. Further, Multifamily completions are up 34% from 2023, which had already been the strongest construction year for the sector since 1987.
Such momentous construction activity was destined to dampen the Apartment sector’s rent growth. Nonetheless, the long-term need for affordable, high-qualityhousing remains intact as migration, family formations, home-buying financial constraints, and aging-in-place trends have raised the floor for apartment demand.
