Multifamily Investing in 2025: Key Macro and Micro Trends to Watch Ft. John Chang

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About this podcast

In this episode of Wealth Unfiltered, we dive deep with lead Economist for Marcus & Millichap, John Change, into the macro and micro trends shaping the multifamily investment landscape in 2025. Join us as we explore how key economic factors—such as interest rates, inflation, and GDP growth—influence multifamily opportunities and how recent rate cuts will impact investor sentiment and financing. We’ll also examine the shortage of multifamily starts over the past few years and what it means for the next five years in real estate.

Demographic shifts, such as urban migration and generational preferences, drive demand for multifamily housing in certain regions. We’ll identify which cities are poised for growth and how these shifts could shape the sector shortly. We’ll also explore the global impact of international capital flowing into U.S. real estate and its influence on the multifamily sector.

Regarding investment strategies, we’ll discuss the debate between value-add opportunities and new developments. With factors like cap rate compression and rent growth forecasts at play, you’ll gain valuable insights on optimizing returns. Sustainability and ESG initiatives are also becoming increasingly crucial in multifamily investments—find out how these trends affect ROI.

We also cover the risks facing multifamily investors in 2025, including economic volatility and regulatory changes, and explore how technology transforms property management and enhances tenant experiences through PropTech innovations.

Tune in for expert insights and actionable strategies to navigate the multifamily investment space in 2025, and hear the one piece of advice that could shape your investment strategy this year.

Key takeaways

  • Economic Factors: Interest rates, inflation, and GDP growth will shape the multifamily investment landscape in 2025, impacting financing and investor sentiment.
  • Rate Cuts: Recent rate cuts will improve multifamily financing and boost investor confidence.
  • Supply Shortage: The lack of new multifamily starts presents investment opportunities as demand increases over the next 5 years.
  • Demographic Shifts: Urban migration and millennial/Gen Z preferences are driving demand in specific regions, creating growth potential.
  • Global Capital Flows: International investment in U.S. real estate will influence the multifamily sector.
  • Investment Strategy: Value-add vs. new development—cap rate compression and rent growth will guide strategy decisions.
  • Sustainability & ESG: Sustainability and ESG initiatives are becoming key to ROI in multifamily investments.
  • Market Risks: Economic volatility and regulatory changes are risks to manage for 2025.
  • Technology: PropTech is improving property management and tenant experiences, enhancing investment value.
  • 2025 Outlook: Favorable conditions make 2025 an ideal year for multifamily investing, with informed decisions crucial for success.