Riding the Current: How CCIMs Can Navigate the Multifamily Housing Market in 2025

Staff Article

CHICAGO - As economic conditions and demographic shifts continue to reshape the multifamily housing market, the outlook for 2025 reflects cautious optimism rather than an all-encompassing boom. While certain regions are poised for growth, challenges such as affordability concerns, supply imbalances, and fluctuating interest rates temper expectations. CCIM Designees, equipped with unparalleled tools and expertise, are uniquely positioned to guide investors through these evolving conditions, identifying opportunities while mitigating risks.

The Multifamily Market: A Mixed Landscape

Growth in the multifamily sector is expected to remain uneven in 2025, with certain regions outperforming others. Areas like the Southeast, Texas, and parts of the West, which continue to attract population growth and job creation, are likely to see rental housing demand outpace supply. According to data from the U.S. Census Bureau, migration into these regions has been fueled by cost-of-living advantages and lifestyle preferences, including remote work flexibility and warmer climates.

However, even in these high-demand regions, the multifamily market faces headwinds. The delivery of more than 500,000 units in 2024—the highest in 20 years—has contributed to oversupply in certain markets, particularly in the South and West. Meanwhile, the affordability crisis in housing persists, with 30 renters vying for every available home for sale, highlighting the need for more workforce and affordable housing.

Despite these challenges, suburban areas that mimic urban amenities are emerging as bright spots in the multifamily market. These "urbanized suburbs" offer spacious housing options with access to workplaces, schools, and retail centers, catering to renters seeking a balance between convenience and comfort. This trend underscores the importance of tailoring developments to meet evolving renter preferences.

Opportunities for CCIMs to Lead

Leverage Advanced Tools for Data-Driven Insights

CCIMs have access to tools like Site To Do Business (STDB) and Moody’s Market Pro, which provide deep insights into local market dynamics. These platforms enable Designees to evaluate migration patterns, employment trends, and income demographics, allowing investors to target regions where rental demand is poised for sustainable growth.
Using STDB, CCIMs can map population density, proximity to job hubs, and commute times, identifying neighborhoods where zoning and infrastructure are favorable for multifamily investment. This data-driven approach ensures that investors can act quickly and confidently in an increasingly competitive market.

David Monroe, CCIM, Founder of AcquisitionPRO® in Mobile, Al., has also found the tools useful.

"I have recently replaced the supply side tool I have been using for many years with Moody’s CRE Market Pro and found that I can search for owners based on CMBS, Fanny and Freddy, and other loan details, where in the other product I was only able to pull CMBS data," Monroe said.  

"This is a game changer for my business."

"I can now search for owners that have loans which are distressed in some form and offer solutions that prevent the owners from going through a foreclosure or bankruptcy, creating a win/win/win for all parties involved," Monroe said.

Adapt Strategies Through Continued Education

As multifamily markets shift, staying informed on trends is crucial. The CCIM Institute offers programs like the Ward Center for Real Estate Studies, which focus on financial modeling and investment analysis. These courses help Designees refine their ability to assess cash flows, financing options, and projected returns, ensuring their strategies remain ahead of market trends.

The increasing demand for workforce and affordable housing presents a unique opportunity for CCIMs to innovate. By understanding the nuances of this segment, Designees can guide developers and investors toward projects that address housing shortages while delivering strong returns.

Build Strategic Relationships

Networking remains a cornerstone of success in commercial real estate, and the CCIM Institute provides unparalleled opportunities to connect. Events like the C5 + CCIM Global Summit bring together Designees and industry leaders, fostering collaboration and access to unique deals.

For multifamily investors, these relationships can open doors to co-investments, strategic partnerships, and off-market opportunities. By leveraging their network, CCIMs can enhance their value proposition and drive growth for their clients.

"I recently landed a consulting relationship from a group that just sold a company and was looking to take the proceeds and invest in commercial real estate. They said the reason they hired me was because of the ethics and my access to the CCIM network, which gave me the ability to help them nationwide," Monroe said.

Looking Ahead to 2025

The multifamily market in 2025 offers a blend of opportunities and challenges. While regions with strong population growth and urbanized suburbs are poised for modest gains, the sector’s overall performance will depend on factors like construction costs, interest rates, and economic stability. For investors navigating this complex landscape, CCIM Designees provide the expertise and perspective needed to make informed decisions.

With advanced tools, ongoing education, and a robust professional network, CCIMs are well-positioned to lead in the multifamily space. As the market evolves, their ability to identify trends, adapt strategies, and deliver results will make them indispensable partners in achieving investment success. 