
PassivePockets: The Passive Real Estate Investing Show
“Resilient” Multifamily Investments LPs Are Targeting as Recession Fears Grow
Apr 22, 2025
36:39
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Quick takeaways
- As construction activity slows down due to market uncertainties, operators focusing on resilient middle-market properties may find success in 2025.
- Investor sentiment is shifting towards geographic diversification and different asset classes in multifamily, aiming to mitigate risks from economic fluctuations.
Deep dives
Multifamily Market Dynamics and Outlook
The multifamily market in 2025 is characterized by a significant volume of new deliveries and shifting demand dynamics. In 2024, the U.S. saw record new unit deliveries, with close to 400,000 units finished, although absorption rates have varied across markets. Key markets accounted for half of the new supply, presenting opportunities and challenges as some areas face oversupply while others demonstrate limited new developments. As construction activity will diminish in the coming years, experts suggest that those capable of navigating development efficiently may find success in a tightening market by 2026 and 2027.
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