The multifamily real estate market experienced a surge in deal volume, reaching $146 billion in 2024, with analysts projecting even higher sales in 2025 as investors prepare to deploy more capital.
Multifamily transactions increased by 22% year-over-year, fueled by major acquisitions like Blackstone’s $10 billion purchase of Apartment Income REIT Corp. and Equity Residential’s $1 billion deal for 11 properties from Blackstone.
Entity-level and portfolio transactions climbed 54% to $35 billion, with Q4 alone seeing a 261% increase to $7.9 billion. The largest portfolio transaction in Q4 was Standard Communities’ $1 billion acquisition of 6,000 unitsacross four states.
Individual asset sales also surged, rising 12% to $110.9 billion for the year, with Q4 experiencing a 47% jump to $37.5 billion.
Strong Demand Across All Multifamily Property Types
- Garden-style apartment sales rose 14% to $83 billion, with Q4 transactions increasing 55% to $26.6 billion.
- Mid-rise and high-rise deals jumped 35% to $62.9 billion, with Q4 volumes up 78% to $18.8 billion.
Investor Confidence Remains High for 2025
A CBRE survey found that 70% of commercial real estate investors plan to buy more properties in 2025, with multifamily being the top asset choice for 72% of respondents.
This strong investor interest, coupled with favorable pricing trends and stabilizing cap rates, signals continued growth opportunities in the multifamily sector.
With interest rate cuts and pro-growth policies supporting market stability, investors are strategically increasing their real estate allocations, making 2025 a promising year for multifamily real estate investment and development.
Seize the Opportunity in 2025
With the Federal Reserve’s interest rate cuts and pro-growth policies easing investor concerns, the multifamily market is poised for continued expansion. As investors focus on acquiring and upgrading properties, multifamily finishes suppliers can play a pivotal role in delivering the materials needed to meet this demand.
Partner with Us to Elevate Your Multifamily Projects
As the multifamily real estate market thrives, now is the time to invest in premium finishes that enhance property value and appeal. Explore our extensive range of multifamily finishes designed to meet the needs of today’s dynamic market. Contact us today to learn how we can help you stay ahead in this competitive landscape.