Origin Investments is predicting that multifamily rents and construction costs will move higher in 2025, banks’ shifting “extend and pretend” strategies will force industry-wide losses, inflation likely will increase, and consumers will continue to choose renting versus buying homes because of a record pricing gap.
After two challenging years in the multifamily sector, tailwinds are appearing in the form of positive rent growth and demand. Unknowns, such as the impact of potential Trump administration tariffs, could create inflationary pressures. Despite the likelihood that interest rates won’t drop low enough to stimulate transaction activity closer to peak 2021-22 levels, the multifamily sector’s strong fundamentals are reason for optimism.
“Our multifamily investment and operating perspectives go beyond a presidential term,” said David Scherer, co-CEO, Origin Investments and the author of the 2025 Predictions Report. “Despite uncertainties t
