U.S. Capital Markets Multifamily Market Report | Newmark | Q4 2025

Market Overview

The U.S. multifamily sector entered 4Q25 with rent growth in negative territory, down 0.6% year over year, as elevated supply continued to weigh on performance across select markets. But the capital markets picture told a different story. Sales volume reached $50.9 billion, up 4.5% year over year, debt originations rose 37%, and net absorption totaled approximately 40,000 units as demand normalized following an extended surge. Units under construction fell 47% from peak levels, and annual demand as a share of inventory held at 1.8%, above the long-term average. Class A assets outperformed, and the cost-of-homeownership gap continued to support renter retention, setting up improved fundamentals as deliveries slow through 2026.

About Newmark

Newmark is a full-service commercial real estate advisory and capital markets firm serving investors, owners, and occupiers across major U.S. and global markets. Their 4Q25 U.S. Multifamily Capital Markets Conditions and Trends report covers absorption, rent growth, debt originations, and sales volume to help investors assess market conditions and track capital markets activity. To read the full report, click here.