After two years of uneven performance, U.S. multifamily investment activity gained momentum in 2025. Total transaction volume rose 9% year-over-year to $165.5 billion, according to data that MSCI Real Assets provided to Multifamily Dive. The uptick spanned every property subtype and metro tier—even as average prices edged down 1.3%, a gentler decline than 2024's 3% drop. Cap rates held steady at 5.7% across both years, suggesting a degree of market stability amid mixed fundamentals.
The headline figure, though, reflects total dollar volume rather than units sold or deal counts—and it may not be inflation-adjusted, a nuance that could shave a few percentage points from the gain. Still, the surge marks renewed investor appetite after the market's sharp cooling in 2024. That year's standout event—a $10 billion deal in which Blackstone took AIR Communities private—had inflated overall volume, according to MSCI. In contrast, 2025's growth came from a broad base of smaller, one-off acquisitions rather than outsized portfolio sales.
Entity-level and portfolio transactions plunged 96% to just $354 million, down roughly $8.85 billion from 2024. Yet individual deals—seen as a cleaner gauge of investor sentiment—jumped 20% to $136.8 billion. "This pace of growth is a clearer signal of market trends," MSCI wrote, adding that the expansion in single-property sales suggests investors are becoming more confident in the sector's income story.
By property type, mid- and high-rise transactions rose 7% to $69.6 billion, while garden apartment deals increased 11% to $95.8 billion. Even so, MSCI cautioned that fundamentals have softened since the 2022 boom, with rising institutional-quality vacancy rates and declining rents indicating some investors may be entering at challenging valuations. Lower prices, the firm said, might still be needed to align with current income levels—though expectations for long-term rent growth could justify today's deals.
That future-focused optimism is exemplified by American Landmark Apartments, which announced in mid-January that it had raised about $400 million in the first close of its $1 billion-target Fund V. The firm said the fund will invest primarily in Class A and B multifamily properties across fast-growing Sunbelt markets, emphasizing management, renovations, and acquisitions. American Landmark remains bullish on the sector, citing affordable rents compared to ownership costs, occupancy near 95%, and anticipated construction slowdowns.
"Our seasoned team's deep understanding of the multifamily sector in various economic cycles and submarkets allows us to skillfully complete our investment objectives with clarity and confidence while furthering our growth as one of the nation's top owner/operators," said Joe Lubeck, CEO of American Landmark, in a statement.
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