The economy today feels unpredictable, full of sudden shifts and unexpected turns. Snap-on CEO Nick Pinchuk recently described it as being “like Space Mountain at Disney World. You get in a car, and you’re in the dark…the cars go left and right, left and right and abrupt turns, you don’t know where you’re going, but you know, you’re pretty confident that you’re going to get to the right place at the bottom.”
Despite economic uncertainty, multifamily demand has been a constant. Multifamily Dive reports that millennials and Gen Z are delaying homeownership due to high mortgage rates and financial constraints like student debt. Many renters are choosing suburban and secondary markets, where affordability and flexibility make leasing a preferred option.
Jeff Hanks, Chief Financial Officer at RealSource Properties, adds: "While the broader economy is unpredictable, the fundamentals of multifamily remain strong. People always need a place to live, and high mortgage rates are keeping many in the rental market longer than before. Even in times of economic turbulence, stable occupancy and consistent demand make multifamily a resilient investment."
Freddie Mac’s 2025 Multifamily Outlook shows that even with record levels of new supply, national occupancy remains solid at 94.4%. While rent growth has slowed in high-supply markets, Multi-Housing News notes that the rental market broke a six-month streak of declines at the start of the year. Additionally, NMHC projects that the U.S. will need 4.3 million more apartments by 2035, reinforcing long-term rental demand.
Resident Lounge at Summit on Boulder Apartments in Henderson, NV
As other asset classes experience uncertainty, multifamily real estate continues to be a stabilizing force. Rising homeownership costs and limited new development in key markets further strengthen the sector’s reliability. Even in an economic rollercoaster, rental housing remains a steady track guiding investors through the twists and turns.
