Yardi’s Multifamily Outlook for 2025

According to Yardi’s U.S. Multifamily Outlook for Winter 2025, the multifamily market enters 2025 in good shape, after several years of strong demand in most markets and expectations that interest rates are likely to decline. They say the economy continues to grow, the employment picture remains solid despite some cooling, and consumers are spending in line with high confidence levels.  Their new report offers an outlook for the year ahead.

The market faces questions, however, including the impact of potential economic policy changes, how long it will take to absorb deliveries in high-growth Sun Belt markets, and whether interest rates will fall enough to revive transactions and avoid distress.