Gray Capital's 2025 Multifamily Forecast Highlights Positive Investment Prospects and High Housing Demand

INDIANAPOLIS, Dec. 20, 2024 /PRNewswire/ — Gray Capital, a multifamily investment firm, has published their “2025 Multifamily Forecast” report, which covers the major trends in the housing market and economy that will impact the apartment market next year. Along with these broader trends, the new report includes data on apartment supply and demand, capital markets, and specific predictions for rent growth in 2025.

Gray Capital forecasts a favorable investment environment in 2025 driven by high housing demand and normalizing supply.

“Multifamily is on the precipice of an inflection point. 2025 should see significantly more sales activity, but there is potential for additional volatility depending on the path of inflation and interest rates,” says Spencer Gray, President and CEO of Gray Capital.

Gray Capital’s forecast report builds on previous research on loan maturities as an element of the multifamily investment market worth watching in 2025. This earlier research expanded on the effects of extend-and-pretend practices in pushing loan maturities forward into 2025, and Gray Capital’s new forecast highlights loan maturities as a potential catalyst for greater sales activity next year.

“Multifamily sales volumes dropped to roughly half of the pre-pandemic average for the past two years, but if banks are less willing to provide workouts and extensions compared to 2023, loan maturities could lead to more deals coming onto the market and more sales activity in 2025,” says Matt Bastnagel, Director of Communications and Marketing at Gray Capital.

Gray Capital expects a further balance between supply and demand in 2025, but supply levels will continue to be elevated in specific markets, with rent growth in many Sunbelt markets expected to be lower than markets in the Northeast and Midwest. Persistently high housing and apartment demand support the solid long-term investment prospects for multifamily assets, and Gray Capital anticipates a favorable investment environment in 2025 that aligns with recent improvements in investor sentiment.

For additional information on the multifamily market in 2025, download the complete report or watch the webinar on the topic. To learn more about Gray Capital, visit www.graycapitalllc.com or follow Gray Capital on LinkedIn, Instagram, and YouTube.