March 2025

Some of our thoughts on the mixed picture for the multifamily housing market. Locally, leasing is picking up, but concessions and value-oriented rates have been driving tenant decisions. The hope is that increased demand will shift negotiations and reduce concessions as the year progresses. Acquisition efforts for a high-quality asset in 2025 were unsuccessful, but searching continues. Industry-wide, uncertainty persists due to fluctuating interest rates, impacting debt costs and property values. A gap between buyer and seller expectations is slowing transactions, but long-term optimism remains, fueled by expectations of stabilizing supply and strong demand. Inflation and economic indicators are being closely watched, with a potential for increased investment activity in 2025 despite higher interest rates.