8 key trends shaping the multifamily industry in 2025.

As the multifamily market continues to shift, property owners, managers, and marketers must balance what renters are looking for with financial realities. Where does it make sense to invest over the coming year? What can multifamily companies expect in return for those investments?

PERQ is dedicated to helping property management companies like yours reimagine the renter’s journey to gain more leases for less work and cost. We stay alert for opportunities to capitalize on multifamily industry trends and help you stay ahead. In this post, we explore current trends to equip you with the insights you need to ensure your multifamily community remains attractive and successful in 2025 and beyond.

#1 Positive investment outlook for the multifamily sector following potential rate cuts.

If you’re looking to acquire additional real estate or attract more investors, now may be the best time to act. The Federal Reserve cut interest rates by a quarter percentage point in December, following two previous cuts in the final months of the year. They are also expected to cut rates two more times in 2025. After the inflation spikes of 2024, these lower rates signal a cooling of rising prices and a favorable environment for potential investors.

More specifically, multifamily owners and managers can expect rising interest in their communities from senior citizens as more Baby Boomers move into that market. They, along with other sections of the population, are looking for communities designed to promote their residents’ overall health and well-being.

#2 A turnaround in demand could stabilize the industry.

The recent interest rate cuts reflect the general observation of the current economy: The market as a whole is stabilizing, which will likely support healthier growth in many sectors. 

In multifamily, we are seeing a change in demand that could stabilize the housing market by helping rents rise and reducing vacancies. At the end of 2024, the rate of new construction was already slowing down. Fewer projects are being planned, as building new properties currently costs more than buying existing ones. The proposed tariffs by the new administration will further raise the costs of new builds. This slowdown means new apartments will eventually be in shorter supply.

Despite all the recent construction, we still lack enough affordable housing, especially since many people can’t afford to buy homes. The current oversupply in some markets isn’t seen as a significant problem since the country is still short on housing overall. So, as demand catches up with this new supply, the multifamily market should find a healthier balance.

#3 Property managers will tackle a price-sensitive market.

According to our 2024 Multifamily Field Guide, price is renters’ #1 priority, a trend that has intensified in recent years. In this report, we consolidated self-reported consumer preferences from across the U.S. In every region, renters place price above factors like square footage, location, or how modern a unit is when selecting a new home. 

This trend in the multifamily industry requires property management companies to be more strategic in their investment decisions. While amenities and location still play crucial roles in attracting potential residents, the key lies in identifying which features truly justify increased rental rates. 

Regional preferences vary significantly. For example, renters in the Southeast show less interest in garage parking than those in the Northeast, highlighting the importance of market-specific amenity planning.

As the cost of living continues to rise, multifamily properties must balance competitive pricing and other factors such as location or amenities. This means carefully evaluating each potential investment based on resident demand and willingness to pay.

#4 Technology and innovation are the new floor in multifamily standards.

Prospective renters now view technological innovations as essential, setting a new standard in multifamily living. A recent survey shows almost 75% of tenants view advanced technology, such as smart appliances and keyless entry, as a deciding factor in whether to sign a lease or look elsewhere.

While they still prioritize amenities like in-unit laundry and walk-in closets, this current market of renters prefers the convenience of smart technology in their new homes and in their interactions with property management companies.

Property managers can capitalize on this multifamily industry trend by integrating technology at each stage of the rental journey—from the initial website visit and tour scheduling to offering virtual tour options. With the generational shift toward email and text (SMS) messaging, streamlined digital communication methods are the best option for capturing prospects’ attention throughout the renter’s journey. 
Solutions such as PERQ’s innovative digital marketing platform can support property managers and their teams in delivering a modern, tech-driven experience that aligns with these elevated expectations.

#5 Evolving renters’ journeys demand more complex marketing strategies.

Today’s renters navigate a complex, non-linear path to their next home, interacting with multifamily companies across multiple touchpoints before making a decision. This shift requires property management companies to develop sophisticated marketing strategies that meet prospects wherever they are in their journey.

Modern renters might discover a property through Instagram, research floor plans on the website, engage with a chatbot for initial questions, and then switch to text messaging to schedule a tour. This varied approach demands a cohesive marketing strategy that delivers personalized experiences across all channels while maintaining consistent messaging and branding.

Success in this evolving landscape requires implementing marketing automation to respond to inquiries 24/7, deliver targeted ads based on location and preferences, and nurture leads through personalized follow-ups. The multifamily industry needs tools that can connect these touchpoints seamlessly while providing valuable insights into prospect behavior.

PERQ’s comprehensive platform helps property management companies navigate this complexity by unifying their marketing efforts across channels. By connecting the entire customer journey—from initial property discovery to lease signing—PERQ enables properties to deliver the right message at the right time, ultimately converting more leads into signed leases with less effort.

#6 Connected living and community engagement are on the rise.

In an era where remote work has become more common, renters are actively seeking more than just a place to live—they’re looking for a place to belong. Recent data from PERQ’s 2024 Multifamily Field Guide (mentioned above) reveals a compelling trend: social activities rank as the top priority for residents across every region in the United States, underscoring a nationwide desire for community connection.

This shift toward community-centric living is reshaping how property managers approach resident satisfaction and retention. Successful properties are transforming common areas into vibrant social hubs, hosting regular resident events, and creating opportunities for meaningful interactions. These initiatives, from weekend brunches and fitness classes to community gardens and co-working spaces, help forge lasting connections among residents.

The impact of these community-building efforts extends beyond social satisfaction—they’re becoming a crucial factor in leasing decisions. Properties that recognize this industry trend and prioritize resident engagement are seeing higher resident satisfaction rates and stronger lease renewals. This trend particularly resonates with remote workers who value the ability to step outside their apartments and instantly connect with their community, combining the convenience of home with the social aspects they might miss from traditional office environments.

#7 Maximizing space with smaller units and superior amenities.

Property managers are discovering an innovative solution to affordability: optimizing living spaces through strategic design. By reducing individual unit sizes while enhancing shared amenities, communities can offer competitive rental rates without compromising the quality of life their residents expect.

This shift toward efficient space utilization allows multifamily properties to construct more units within their existing footprint—thus creating a win-win situation where residents benefit from lower monthly costs while enjoying access to premium community features. The focus has moved from spacious individual units to thoughtfully designed living spaces. These compact homes are complemented by shared amenities, extending the living experience beyond apartment walls.

Consider transforming traditional common areas into dynamic, multi-purpose spaces that add significant value to residents’ daily lives. Well-equipped co-working spaces provide a professional environment for remote work, while state-of-the-art fitness centers eliminate the need for external gym memberships. Luxurious communal lounges, equipped with modern entertainment systems and comfortable seating, become natural gathering spots that compensate for more modest unit sizes.

#8 Business Intelligence (BI) plays an even greater role in multifamily.

In today’s data-driven landscape, business intelligence has evolved from a competitive advantage to an operational necessity in multifamily property management. Donald Davidoff notes in Multifamily Executive, “By collecting data on what has happened and reporting it in an easy-to-consume way, we can make intelligent, data-driven decisions instead of arguing over opinions.”

This transformation goes beyond basic data collection. Davidoff’s concept of “connected analytics” explains how properties can transform their approach to decision-making and asset management by connecting data from various operational systems and sharing it throughout the organization. This integration enables property managers to make better decisions faster, from optimizing rental pricing to predicting maintenance needs.

Modern BI tools provide unprecedented insights into every aspect of property operations—from marketing performance and leasing trends to resident satisfaction and amenity usage. Property managers can now track the entire resident lifecycle, analyze marketing channels’ effectiveness, and identify operational improvement opportunities. This wealth of actionable data allows properties to stay competitive by making informed decisions about investments, marketing strategies, and property improvements directly impacting their bottom line.

Embracing Change: Your Path Forward in 2025

As we’ve explored these crucial trends shaping the multifamily industry, it’s clear that success in 2025 and beyond will require a delicate balance of technology adoption, community building, and strategic pricing. By staying attuned to these trends and implementing the right tools and strategies, you can put your property in a better position to thrive in this evolving marketplace.