The multifamily market is poised to remain the most active sector in terms of new investments next year, according to a new report from Colliers. While rising operational costs and the impact of higher interest rates will undoubtedly challenge property owner’s returns, several economic factors are expected to sustain the appeal of multifamily investments through 2025.
Colliers’ investment outlook said that strong demand for rental housing will continue to support the market. Robust household formation, driven by factors such as Gen Z entering the workforce, and the continued impact of high home prices are expected to fuel this demand. Although rent growth may moderate in some areas, the report projects a resurgence in rents next year, as markets with supply shortages are expected to see significant gains.
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