Core small multifamily performance metrics strengthened in the quarter, including a return to positive annual price gains.

As was the case during 2024, the top rent growth markets through the first half of 2025 represented several regions, all with varying strengths and characteristics.

The U.S. multifamily market stood on the cusp of a new cycle at the halfway point of 2025, as demand continued to be driven by favorable demographic trends and a structural need for housing.

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 market continued to settle into a more normalized cycle during the first quarter of 2025, as well-positioned investors began to take advantage of new opportunities in an uncertain economic environment.

The U.S. multifamily market continued to settle into a normalized cycle during the first quarter of 2025, despite ongoing uncertainties surrounding the global economy and labor market.