The State of the Nation’s Housing Favors Rentals
As multifamily investor sentiment continues the noncommittal “cautious optimism” that has prevailed these past few years, the Harvard Joint Center for Housing Studies has issued it’s annual State of the Nation’s Housing, highlighting the high cost of homeownership and the rise of rental housing.
Multifamily, the Nation, and the Economy
The State of the Nation’s Housing, 2025: Homebuying the lowest since the 1990s
Harvard Joint Center for Housing Studies: “Continued innovations by state and local governments regarding housing policies, regulations, and financing models will help . . . The private sector will also need to innovate to deliver more affordable homes more quickly in a changing landscape.”
- Elevated Rates, Challenging Affordability Conditions Put a Damper on New Home Sales (NAHB)
- May 2025 Realtor Confidence Index: Buyer Interest Remains Low (NAR)
- Fishers, Indiana: A Blueprint for Suburban Transformation (Cushman & Wakefield)
Multifamily and the Housing Market
Mid-Year Multifamily Investor Pulse Survey: “Cautious Optimism”
Berkadia: “Despite market volatility, 74% of respondents continue with planned dispositions, and 46% expect increased transaction activity in 2025, driven by multifamily resilience.”
- Vulnerabilities in Non-bank Commercial Real Estate Investors (Financial Stability Board)
- Flat Fed, Inflation Risks & Durability of Retail Sales (Marcus & Millichap)
- Pre-Stabilized Properties Limit Overall Multifamily Rent Growth (CBRE)
Multifamily Markets and Reports
Summer 2025 Multifamily Outlook: “Multifamily Maintains Strength Despite Uncertainty”
Yardi Matrix: “Multifamily delinquencies and restructurings have increased this year, and the pace will likely pick up in the second half, but it is largely taking place outside of public notice. One reason is that most of the losses are being absorbed by equity holders and not lenders because the severity of losses of individual loans is not as high as it was during the GFC era.”
- US Renters Face Storm of Rising Costs (Bloomberg)
- May 2025 Rental Report: Rents Continue To Decline (Realtor.com)
- Miami Apartment Market Regains the South Florida Occupancy Spotlight (RealPage)
Commercial Real Estate and the Macro Economy
US Consumer Confidence Retreats in June
Via The Conference Board: “The decline was broad-based across components, with consumers’ assessments of the present situation and their expectations for the future both contributing to the deterioration. Consumers were less positive about current business conditions than May.”
- Global Data Center Trends 2025 (CBRE)
- June 2025 National Self-Storage Report: “Advertised Rates Slow” (Yardi Matrix)
- CRE CLO Distress Rates See-Saws back above 13% while Delinquencies and Post-Maturities Rise (CRED iQ)
Other Real Estate News and Reports
June 2025 National Office Report: “Conversions Increase as Incentives Expand”
Via Yardi Matrix: “The average national vacancy rate remained high in May at 19.4%, up 160 basis points from the previous year . . . The number of conversion proposals has increased every year this decade, and 2024 saw 48 million square feet proposed.”
- U.S. Retail Monthly Foot Traffic & Sales Analysis | May 2025 (Colliers)
- U.S. Senior Housing & Care Investor Survey H1 2025 (CBRE)
- Program & Project Management Global Trends: 2025 Construction Cost Market Guide (Newmark)