𝟐𝟎𝟐𝟓: 𝐓𝐡𝐞 𝐘𝐞𝐚𝐫 𝐨𝐟 "𝐁𝐮𝐢𝐥𝐝 𝐒𝐦𝐚𝐫𝐭 𝐨𝐫 𝐍𝐨𝐭 𝐚𝐭 𝐀𝐥𝐥" 𝐢𝐧 𝐌𝐮𝐥𝐭𝐢𝐟𝐚𝐦𝐢𝐥𝐲 𝐃𝐞𝐯𝐞𝐥𝐨𝐩𝐦𝐞𝐧𝐭 Apartment starts are slowing, but well-capitalized developers are preparing to seize opportunities with less competition on the horizon. 2025 could redefine who’s thriving and who’s surviving in the multifamily sector. Here are the key insights: 𝐒𝐭𝐚𝐫𝐭𝐬 𝐀𝐫𝐞 𝐁𝐨𝐭𝐭𝐨𝐦𝐢𝐧𝐠 𝐎𝐮𝐭 Conventional deals are increasingly hard to justify, with private equity keeping a tight grip on construction equity. “The pure market-rate deal right now just really doesn’t make sense from a financial standpoint.” —Ryan Davis Another obstacle is projecting rents for new developments. “Right now, that number has been tough to pin down because we’ve seen so many concessions and cuts to the base rent for these new lease-ups. That makes it harder to plan out another new project when you know the rents are a little bit of a moving target and moving in the wrong direction.” —Jay Parsons 𝐁𝐢𝐠 𝐏𝐥𝐚𝐲𝐞𝐫𝐬 𝐀𝐫𝐞 𝐃𝐨𝐮𝐛𝐥𝐢𝐧𝐠 𝐃𝐨𝐰𝐧 While smaller builders are squeezed out, larger firms are making bold moves, expecting reduced competition and growing rental revenue by 2027. “Anything that started now is delivering and stabilizing in mid-2027. We really like the development opportunity a lot.” —David Reynolds 𝐓𝐡𝐞 𝐓𝐫𝐮𝐦𝐩 𝐄𝐟𝐟𝐞𝐜𝐭 Potential policies, including expanded Opportunity Zones, deportations, and tariffs, could shake up development. “That could take us in the wrong direction on the cost of building these projects.” —Ken Simonson In 2025, the game is all about precision. Developers with capital and vision are laying the groundwork for success, while others are left calculating whether the numbers will ever add up. https://lnkd.in/ej6rcYPJ