The first half of 2025 closed on a strong note for Cushman & Wakefield’s multifamily portfolio, according to Sam Tennenbaum – Head of Multifamily Insights. Leasing activity which encompasses more than 167,000 units nationwide remained robust, with occupancy holding near cycle highs and financial stress among renters proving minimal. Despite broader economic uncertainty, delinquencies and cost-related move-outs stayed low, underscoring the resilience of the multifamily sector.
Leasing momentum was the standout theme through June. Renter inquiries were up 34% year-over-year, and applications per available unit actually accelerated into the second quarter. This was a departure from the typical seasonal slowdown, as demand carried through spring and summer to fuel steady gains in occupancy.
Owners across the portfolio have been strategic in managing rent rolls amid an influx of new deliveries. While supply increased in the second quarter, job growth provided solid support for demand. Many operators chose to focus on maintaining and improving occupancy rather than pushing rents, a strategy that paid off as occupancy levels climbed. Looking ahead, the supply pipeline is expected to taper off in the second half of 2025 and into 2026, reducing competitive pressure in many markets.
Another clear sign of recovery can be seen in the decline of rental concessions. Incentives offered to attract tenants have dropped sharply since the start of the year and are expected to continue falling. This trend should contribute to stronger net operating income (NOI), particularly for newly delivered communities, over the next 18 months.
Just as important, renter balance sheets remain healthy. Surveys of former residents show very few move-outs driven by financial stress, and rent-to-income ratios continue to hover at stable levels. With minimal delinquency and little evidence of financial strain, residents appear well-positioned heading into the second half of the year.
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