A new report from multifamily investment firm Gray Capital, “The Multifamily Window: Why 2025 Could Be the Best Buy Opportunity in Years,” outlines why the upcoming year could be a prime time to invest in apartment assets. With apartment demand and household growth outpacing shrinking supply, the market is shifting in favor of investors, creating strong momentum for multifamily sales activity.
After years of high interest rates, oversupply, and negative rent growth, multifamily investors have faced significant challenges. However, multifamily starts and new deliveries are expected to decline sharply in 2025, which could boost the performance of existing properties. At the same time, rent-to-income ratios are falling as home prices rise, signaling continued demand for apartments.
Looking to Long-Term Fundamentals
“Multifamily investors are jaded from the last few years of high interest rates, surging new supply, and negative rent growth, which have led to capital calls and distress,” says Spencer Gray, President and CEO of Gray Capital. “That scenario is soon to be behind us, so it’s critical for investors to look at the longer-term fundamentals. When you do that, the next 5-10 years look very positive, but investors have to push past the fear and uncertainty of today if they want to take advantage of lower asset prices.”
The report draws on data from the Federal Reserve, Bureau of Labor Statistics, CoStar, and CME Group to analyze current market conditions. In 2023 and 2024, high interest rates and economic uncertainty stalled multifamily investment. But in 2025, the fundamentals are improving—construction starts have dropped to their lowest levels since 2011, while absorption exceeded 550,000 units in 2024, the second-highest total in over 25 years.
“Institutional investors are already moving back into multifamily,” says Matt Bastnagel, Director of Communications and Marketing at Gray Capital. “Our report highlights the data and trends driving this renewed confidence in the market.”
With tight supply, rising rents, and growing investor activity, the apartment market is entering a major transition from hesitation to action. Gray Capital’s report provides key insights to help investors seize opportunities in this shifting landscape.
