The multifamily sector is poised for a brighter 2025, with rents and construction costs expected to rise despite ongoing economic challenges. According to a recent report from Origin Investments, a combination of strong demand, supply constraints, and evolving financial strategies points to a promising year ahead for multifamily investors.

After two years of rising inflation and interest rates, the multifamily market is beginning to turn the corner. Origin co-CEO David Scherer projects substantial year-over-year rent growth in the latter half of 2025. This growth will be driven by a widening supply-demand imbalance, particularly in high-performing markets like Miami, Seattle, New York, and Los Angeles.

Rent growth in these cities could exceed 4%, continuing the trend of rising rents fueled by limited new construction, according to the report. "Despite uncertainties, the fundamentals of the multifamily sector remain strong," Scherer said. "We believe 2025 marks the beginning of a significant bull cycle for multifamily rents, creating long-term investment potential."