The multifamily market is expected to modestly strengthen over the next year as several economic factors converge, according to Marcus & Millichap’s 2025 multifamily investment forecast.
One factor is unemployment, which is a major driver of CRE demand. Last year, the United States added 2.2 million jobs. Marcus & Millichap expects job creation to settle at about 1.8 million this year.
“The slowing pace of job creation reflects the higher interest rate climate driven by the Federal Reserve's effort to drive down inflation,” said Marcus & Millichap national director of research and advisory services John Chang. “But we still expect the Fed to achieve a soft landing with unemployment remaining stable near 4%.”
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 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.
