Multifamily: Poised for Growth
Multifamily headlines have swamped newsfeeds in 2025. Narratives have been hailing slowing construction levels and elevated renter demand as well as stabilizing rents and increased investor interest.
Recent multifamily news articles catching our attention include:
- U.S. Multifamily Absorption Posts Strongest Q1 Since 2000 (Connect CRE, May 2025)
- U.S. Multifamily Recovery Continues as Vacancy Rate Falls, New Construction Slows (CBRE, May 2025)
- Multifamily Investment Surges 33% as Vacancy Rates Drop Nationwide (GlobeSt., May 7, 2025)
- “Multifamily Resilience Continues Despite Economic Uncertainty” (CRE Daily, April 2025)
- “Multifamily Investment Outlook Brightens Amid Stabilizing Rents and Declining Vacancy” (GlobeSt., April 2025)
Capital Square’s Response
We’ve been saying it for years: the multifamily sector is an extremely attractive asset class. This is not only because of the housing shortage that continues to plague the U.S., but also because, even in volatile markets, investments in housing have historically offered stability. While some asset classes fluctuate in demand, people always need a place to live.
Changing dynamics of supply and demand are a big part of this conversation, as are the diversified tenancy of multifamily (versus a single anchor tenant) and high NOI-to-cash flow margins. Plus, the short-term leases of multifamily create a hedge against inflation. We could go on about each of these ideas and the many compelling fundamentals of multifamily investments, but in short, the latest data and news headlines point to trends well aligned with Capital Square’s long-standing investment philosophy.
As CoStar has noted, approximately 2 million new renter households are expected to arise over the next five years in the United States, and homeownership is expected to remain difficult. Multifamily is poised for tremendous growth, and as we focus on our investors, we are proud to offer tax-advantaged real estate opportunities positioned to maximize outcomes.
Learn more about our open offerings. Then connect with our team to continue the conversation.
Disclosure: Securities offered through WealthForge Securities, LLC, Member FINRA/SIPC. Capital Square and WealthForge Securities, LLC are separate entities. There are material risks associated with investing in DST properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short-term leases associated with multi-family properties, financing risks, potential adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, returns and appreciation are not guaranteed. IRC Section 1031 is a complex tax concept; consult your legal or tax professional regarding the specifics of your particular situation. This is not a solicitation or an offer to see any securities. Please read the Private Placement Memorandum (PPM) in its entirety, paying careful attention to the risk section prior to investing. Diversification does not guarantee profits or protect against losses. Private placements are speculative.
