At Quattro Capital, we keep a close eye on multifamily market trends, not just because it’s our business, but because it directly impacts the performance and stability of our investors’ portfolios.
As we wrap up the first half of 2025, one thing is clear: despite headlines focused on oversupply or rate uncertainty, multifamily real estate continues to perform with resilience.
Here’s what we’re seeing, and why we believe we’re on the edge of another strong cycle of rent growth.
Even with the heaviest wave of new deliveries we’ve seen in years, demand for multifamily units has remained strong. In fact, absorption is nearly keeping pace with the elevated supply hitting the market, something many analysts didn’t expect this early in the year.
What’s driving it?
While there’s no doubt that a flood of new units came online over the last 12–18 months, construction starts have declined significantly. Higher interest rates, tighter lending, and construction cost pressures have all contributed to developers pausing new projects.
The result? The supply peak is likely behind us.
This slowdown in starts means that as we move through the second half of 2025 and into 2026, the pace of new deliveries will decline, and that creates the perfect setup for rent growth to rebound.
At Quattro, we’ve always taken a disciplined, long-term approach to acquisitions. We prioritize strong fundamentals, underwrite conservatively, and invest in markets where supply-demand dynamics favor stability and growth.
Here’s how we’re thinking about the road ahead:
Near-term pressure on rents may ease as new supply is absorbed.
Fewer new starts now = pricing power later for well-positioned operators.
Long-term tailwinds like job growth, in-migration, and affordability gaps continue to support multifamily demand.
In short, we believe the fundamentals are lining up for a renewed period of performance in the multifamily space, particularly for sponsors who’ve navigated this market cycle with care.
For our investors, that means continued stable performance today, with real upside potential on the horizon. We’re confident in the assets we’ve acquired and even more confident in the long-term strategy behind them.
As always, we’re here to help you stay informed, aligned, and ahead of the curve.
Schedule a strategy call with one of the managing partners at Quattro Capital, because building wealth is only half the story; the real goal is amplifying your life.