There is good news ahead for apartment owners in the year ahead as vacancy is slated to come down and with rent growing, while home buying remains out of reach for many, according to CBRE’s multifamily forecast for 2025.

“With continued solid fundamentals, multifamily is the most preferred asset class for commercial real estate investors in 2025,” CBRE declared.

New deliveries of apartment complexes are still on the way – with some markets seeing inventory growth of almost 20% over three years. However, the report said many of these markets — including 10 of the 16 with the largest supply pipelines — have already achieved peak deliveries. This has enabled occupancy rates to begin to recover. The remaining six metros are expected to reach their peaks in 2025. This could spur increased multifamily investment activity, the report said.