The U.S. multifamily market in 3Q 2025 has continued to deliver a strong performance, and investors have noticed, according to a new analysis by Avison Young.
“Almost 60% of dry powder is targeting multifamily assets,” the analysis noted, interpreting this condition as a signal of sustained investor confidence in the sector even as market conditions change. Other sectors were well behind. Just 24% of investment was focused on industrial property, six percent on office, four percent on retail and 11 percent on “other.”
Multifamily has benefited from a rise in sales volumes and rental rates since the start of the year, thanks to new construction starts being down by -47.4%, even while deliveries are maintaining record high levels. The gap between absorbed units and delivered units for major U.S. markets reached its lowest levels since 2021. This has encouraged rent increases of 0.9%, according to the report. Coastal markets where supply increases have been more limited have benefited most.
Another sign of the rising interest in multifamily assets is that year-to-date multifamily sales volumes in 2025 are at their highest levels since 2022, while treasury rates ended Q3 2025 at 4.16%, down from 4.58% in 2024, Avison Young noted.
Year-to-date, private buyers were the largest purchasers of multifamily properties, representing 51% of sales. Institutions and REITs have comprised 36.8% of multifamily acquisitions in 2025 YTD, the highest share since 2019.
The highest levels of investment were in Texas, where sales volume totaled $6 billion year-to-date. The Lone Star State received a boost from ongoing employment growth, particularly in the financial services industry, and the recent approval by the SEC of the Texas Stock Exchange, according to the report. Runners up were Seattle and San Francisco, each with around $3.4 billion in sales, then Phoenix and Miami, each with around $3.2 billion in sales, followed by Atlanta, with sales of $2.9 billion.
Upcoming loan maturities could modify the outlook for some metros. According to Avison Young, Manhattan ($3.9 billion), Atlanta ($3.4 billion) and Los Angeles ($3 billion) account for almost 25% of loan maturities in 2026.
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