In 2025, the multifamily housing market has expanded, but it has become even more complex. Along with the usual challenges--fluctuating interest rates, zoning issues and fickle consumers- -the market may have hit a “luxury plateau” (in some areas), as the affluent market is saturated in some areas.
At the same time, demand for new mid-range and affordable rentals continues to rise. Their timing is good. The underlying demographics help explain why. At present interest rates, only about 17 percent of U.S. families can afford the price of a new single-family home ($358,000, at this writing).
According to John Burns Research, new home ownership currently costs about $1,000 monthly more than renting. Last year, according to the NAHB, “multifamily units completed reached 608,000 in 2024 — their highest level since 1986.”Just over half of these were high-density buildings with 50 or more units. Almost all (95 percent) were rentals. But that still left plenty of room for smaller, low-mid-density projects, with 278,000 completed last year.
We’ve compiled a short ebook to dive deeper into some of the latest multifamily trends, pulling out insights and analysis you may have missed. Our information is anchored with original research from our own COGNITION SmartData surveys and analyses. Click here and get caught up on this important sector!