Multifamily continues to demonstrate signs of improvement with rental demand remaining robust, supported by limited homeownership accessibility and demographic tailwinds, particularly in the Sun Belt, according to American Landmark in its first quarter 2025 U.S. Multifamily Markets Conditions Report.
The key to market recovery in 2025 lies in absorption rates; if absorption remains positive at even a fraction of the 2024 pace, demand could exceed supply in 2025, pushing vacancy rates lower and rent growth higher.
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