Amid ongoing macroeconomic uncertainty, the small multifamily sector remains favorably positioned for stability as the structural need for affordable housing in the U.S. has supported the strength of the sector’s demand profile.

The U.S. multifamily sector finished 2024 with the wind at its sails, as the market settled into a more normalized cycle. Rental demand continued to be driven by solid wage growth and household formation, as well as high home prices leading many would-be-homebuyers to consider lifestyle renting.

The U.S. multifamily sector finished 2024 with the wind at its sails, as the market settled into a more normalized cycle with emerging opportunities.

Continually challenged by low inventory, affordable housing sits at a crossroads following the 2024 election. Incoming leadership plans to introduce market-based principles to an agenda that may also include an expanded Housing Choice Voucher program.

The U.S. multifamily market held steady in a more normalized cycle during 2024, following the pandemic-related economic contraction and its rapid recovery. Rental demand remained strong, driven by the ongoing nationwide housing shortage and robust wage growth, as younger generations continued to embrace lifestyle renting.

Small multifamily continued to moderate through the midpoint of 2024, amid strong demand despite an elevated interest rate environment and rising property-level yields.