2025 IPA U.S. Multifamily Investment Forecast

Market Overview

In 2025, the multifamily sector is poised for recovery as key headwinds—like elevated interest rates and a record-high supply pipeline—begin to ease. Net absorption remains strong, especially in Sun Belt metros, supported by job growth and limited homeownership options. While permitting has slowed significantly, demand from household formation and in-migration is expected to stabilize fundamentals in most major markets. With vacancy compression forecasted in most regions, institutional investors are eyeing a more favorable climate ahead.

About IPA

Institutional Property Advisors (IPA), a division of Marcus & Millichap, delivers investment advisory and capital markets services to institutional multifamily and commercial real estate owners. With a network of experienced brokers and research professionals, IPA offers deep market intelligence and transaction support. Its National Multifamily Investment Forecast combines economic analysis, rent trends, and capital flows to guide investor strategy across major U.S. metros.