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.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


NOT FOR REPRINT

© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2025 ALM Global, LLC. All Rights Reserved.