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Home values have grown twice as fast since the start of the pandemic

Home values have grown twice as fast since the start of the pandemic

Mapped: The Most Walkable Cities in the World and 12 more real estate insights

March 17, 2025

Real Estate Trends

Multifamily recovery expected by late 2025

Multifamily construction is slowing down, with new starts dropping 25% in 2024 and expected to fall another 11% this year to 317,000 units. However, completions remain high, with one million units still under construction—the most since 1973.
The NAHB’s Multifamily Production Index (MPI) scored 48 in Q4 2024, signaling continued uncertainty among builders. In contrast, the Multifamily Occupancy Index (MOI) climbed to 81, reflecting strong rental demand despite recent rent declines.
Low unemployment may drive household formation as more young adults aged 25 to 34 move out from their parents’ homes. With limited single-family home availability and homeowners locked into low mortgage rates, many will turn to renting instead.
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Operators defaulting to longer lease terms amid record supply levels link

The surge in apartment construction has pushed operators to offer longer leases to manage vacancies. The average new lease length increased 7% to nearly 13 months, while renewals rose 5% to 12 months.
This shift helps operators reduce simultaneous vacancies and align unit availability with projected lower supply in the future. Renters now have more options than ever, forcing landlords to compete on lease terms.
The trend started in 2023 as new unit deliveries spiked, making lease extensions the highest in a decade. Pre-2020, new leases averaged 12 months and renewals 11.5 months, showing a clear market adjustment.

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Home values have grown twice as fast as normal since the start of the pandemic link

U.S. home values surged 45.3% since February 2020, cramming 11 years of typical growth into just five years. Miami saw the highest increase at 61.1%, followed by Charlotte, Hartford, Tampa, and San Diego.
Mortgage payments on a typical home have jumped 80.6%, adding $1,032 per month due to rising home values and higher interest rates. In 12 markets, monthly payments have more than doubled.
Rents increased 33.4% nationwide, with Miami leading at 54.1% growth. The Bronx saw the sharpest rent spike in NYC at 42.3%, driven by new developments, while Queens rents rose 27.7% as affordability pressures pushed renters out of Manhattan and Brooklyn.

Apartment completions forecast bumped up for 2025, 2026

Multifamily construction starts are down 40% from their 2022 peak, yet Yardi Matrix has increased its forecast for 2025 and 2026 completions. Projected completions for 2025 are now 525,000 units, a 3.3% increase, while 2026 completions are expected to rise 11.5% to 414,000 units.
Despite fewer new starts, the number of units under construction remains high, ensuring a strong pipeline for 2025. This will be the second-highest annual new supply since the 2008 financial crisis, just behind 2024.
Slower construction timelines mean some projects won’t finish until 2026, delaying the supply bottom until 2027. This suggests that supply will remain elevated despite fewer new starts.
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Location Specific

Texas apartment supply to drop notably in 2025 link

Texas saw nearly 120,000 new apartments delivered in 2024, but supply is set to drop by about half in 2025, with only 70,000 units expected. By 2026 and 2027, deliveries will fall further to 45,000-50,000 units, the lowest since 2013.
Multifamily starts have plummeted from 114,000 units in 2022 to just 38,800 in 2024, signaling continued supply constraints. Major slowdowns have hit Houston, Austin, and Dallas, with Houston seeing its lowest starts since 2010.
Dallas remains the state leader with 15,600 units starting in 2024, but that’s still down from 21,900 in 2023. Austin and Houston starts are at decade lows, with Austin’s 2024 starts dropping by 17,000 units from its 2022 peak.

Proptech startups that just got funded

OutmarketAI, a copilot for CRE insurance, raised a $4.7M Seed round led by Fika.
Installer, a renewable tech installer, raised a $4M Seed round led by Brighteye.

Pro Member Only Content Below

Most of the insights below stem from extra research and include content from paid sources and special reports.

What Home Depot’s Q4 earnings say about the 2025 housing market

Home Depot projects just 1% sales growth in 2025, below Wall Street’s 1.65% expectation. This signals a continued slow housing market with weak home-improvement spending.
Housing turnover has likely bottomed at around 3% of units, but no big rebound is expected. New housing starts are also not expected to increase significantly.
The retailer is shifting focus to professionals instead of DIY customers, spending $18.25 billion to acquire SRS Distribution. Strong sales in appliances and power tools helped Q4 exceed expectations, despite ongoing weakness in large remodeling projects.
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Real estate investor trends in 2025

Nearly 60% of U.S. landlords plan to acquire new properties in 2025, signaling confidence in long-term rental market growth. Large landlords with 20+ units are the most aggressive, with 73% planning expansions.
Renovations are a major focus, with 52% of landlords budgeting at least $5,000 per unit for improvements. In the Northeast, 60% of landlords plan to invest in upgrades, while in the South, 52% are keeping budgets below $5,000 per unit.
Income generation remains the top priority, with 47% of landlords focused on increasing rental revenue. However, rising maintenance costs, property taxes, and regulatory challenges are key barriers to expansion.
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Top 10 Markets for Office Deliveries in 2024

Office completions in 2024 totaled 43.2 million square feet, the lowest annual total since 2013, due to slower leasing, tighter financing, and remote work trends. The drop was steep compared to 71.1 million square feet in 2023 and 61 million in 2022.
Boston led the nation with 6.4 million square feet of new office space, a 21.5% increase from 2023, mainly driven by life sciences projects. Other top markets included Seattle (4M sq. ft.), Dallas (2.8M), and San Diego (2.7M).
New construction starts fell to 9.8 million square feet, an 88% drop from 2019’s 83 million square feet, signaling a severe slowdown in speculative office development. Despite this, 54.7 million square feet remained under development by the end of 2024.
click on the link to see the rest of the list.

National Student Housing Report – February 2025

Preleasing for fall 2025 hit 54.6% in January, up from 48.2% a year ago. Some of the highest preleasing rates were at Mizzou (90.8%), Wisconsin (83.7%), and Alabama (81.3%), while Southern California lagged at 9%.
Rent growth is slowing, with the average advertised rent per bedroom reaching $911 in January, a 3.2% increase year-over-year. Ole Miss saw the highest rent increase at 24.6%, while UC-Berkeley experienced a -15.8% decline.
New student housing supply continues to decline, with 35,703 new beds completed in 2024, down from 44,746 in 2023. Yardi Matrix projects 32,100 new beds in 2025 and 33,995 in 2026, indicating a sustained slowdown in new deliveries.
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Record Number of Homes Pile Up in Florida—Making 2 Major Cities Hot Markets for Buyers

Florida saw 168,717 homes hit the market in February, a 40% increase from last year and the highest ever recorded. Orlando, Cape Coral, and Miami led in inventory growth, with surges of 43.8%, 42.7%, and 39.2% respectively.
Sarasota and Bradenton have become prime buyer-friendly markets as prices drop and homes stay on the market longer. Bradenton's median home price fell from $549,000 in June 2022 to $432,000 in January 2025, while Sarasota's median list price dropped $150,000 in just over a year.
Townhomes and condos in Sarasota and Manatee counties saw inventory surge past 4,100 listings, while prices tumbled 17.4% in Sarasota and 6% in Manatee. Properties in both counties now linger for 85+ days, giving buyers strong negotiating leverage.
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