For savvy real estate operators and investors seeking to position themselves ahead of the curve, the 2025 multifamily market is—despite the talking head chatter you may have heard—an amazing place to be.

Here are three essential keys to understanding the opportunities in the dynamic multifamily investing market—as well as how to effectively leverage that knowledge with the right partners. 

• Fortune Favors the Strategic. Yes, multifamily starts were down 36% in 2024 from their 2022 peak. And that trend is expected to continue this year. Yet, it would be unwise to see this as indicating a lack of potential or demand. Take, for example, the findings of the most recent National Association of Home Builders (NHAB) multifamily market survey: While the group’s Multifamily Production Index remains below 50%, its Multifamily Occupancy Index has skyrocketed to 81, four points above last year’s high-water mark. “With the nation currently experiencing low home affordability as the 30-year fixed mortgage rate remains close to 7%, many renters are choosing to stay in the rental market,” the report notes. “High supply helped push multifamily rents down 1% at the end of 2024, but as starts and completions slow, vacancy rates are expected to fall and rents should increase.”

In other words, the only constant is change and, as multifamily supply and demand switch places, the prevailing economic and generational trends suggest the future is bright for this sector and those who enter it. 

• Don’t Sleep on Generational Trends. Did you know that more than 60% of millennials have indicated they prefer living in walkable communities—even if that means forgoing the purchase of single-family suburban homes? Or that the number of “forever renters” in that same generation almost doubled from 13 to 24 percent between 2010 and 2022? This means that value-add renovations to acquired properties—especially in urban areas in which high construction costs and regulatory hurdles can make new development a difficult proposition—can pay major dividends on shorter timelines. Think modern kitchens and appliances, smart home tech flourishes, cosmetic upgrades, fitness centers, communal spaces, etcetera. 

Remember, Millennials and Gen Z are not only hyper eco-conscious—and willing to put their money where their mouths are—but there are many “green” rebates and incentives at all levels of government to explore. 

Read more from A&S on the end of home ownership here.

• Embrace the Multifamily Moment. You want to make a profit. We all do. But if ever there was an opportunity to bring Ben Franklin’s maxim “doing well by doing good,” this is it. Right now, there is a desperate need for housing that cuts across all income levels. There is a need for affordable workforce housing, of course. (Miami Homes for All, for instance, pegs the shortage of workforce housing in the Magic City at more than 90,000 units!) At the same time, nationally, the “number of renters with incomes of over $150,000 grew by 82% between 2015 and 2020.” So, virtually whatever multifamily property you pursue, whether new construction or fix-n-flip, can without exaggeration be classified as a community service. The demand is there—and it is not going away. 

This is why you see Miami offering an affordable workforce housing incentive of up to $6000 per unit, San Jose cutting fees for multifamily developers, and Salt Lake City loosening housing density rules.

It’s also why there is so much in likely future profits to be reaped for those who rise to meet the need.

Need to prepare your multifamily for Gen Z renters? Click here.

• Choose the Right Partner. In an economic moment as volatile as ours, with uncertainty around interest rates and global trade rife, it is more important than ever to have the right partner at your side as you navigate the multifamily housing market—so you can move quickly, efficiently, and profitably. A&S is not only one of the most trusted lenders in the multifamily space, but also provides tailored, and maximize your returns. Whether you’re a seasoned pro or a new investor, personalized solutions so you can minimize upfront costs, reduce project delays, we’re here to help you turn potential into profit.

You can learn more about our residential bridge loans here, and about our DSCR loans here. And be sure to check out our recent client wins here. 

Ready to get started? Reach out today!