Despite Economic Turbulence, Multifamily Stays Strong

Ellie Perlman By Ellie Perlman
3 min read
Apr 28, 2025

Topics:

multifamily

wealth creation

Finance

Tariff

Underwriting

Economy

If you have been watching the headlines, you might be uneasy about where the economy is headed. Inflation, shifting policies, and layoffs have created widespread uncertainty, and plenty of investors feel cautious. Thankfully, multifamily real estate has proven to be one of the most stable sectors right now, with consistent rent growth and solid occupancy rates even while other asset classes face challenges.

 
Why Multifamily Keeps Advancing
 
1. Measured Rent Growth in a Shaky Climate

Recent findings from Yardi Matrix show that the national average multifamily rent rose by $5 between February and March 2025, landing at $1,755. This translates to an increase of 0.4% for the first quarter. That might seem modest, but it stands out in an economy where many sectors are slowing. Even a small upward trend underscores the defensive nature of multifamily when other markets are experiencing ups and downs. 

National Average Rents 2023 to 2025

Renters will always need a place to call home. Economic swings may influence spending on nonessentials, but housing remains essential. That ongoing demand supports a steady rise in rents, even during uncertain times.

2. Occupancy Remains Resilient

 

Another reassuring indicator is occupancy hovering at 94.5%. This rate has barely changed over the last few months, suggesting that renter demand stays firm no matter what headlines dominate the news cycle. In places like New York City (up 5.5% year over year) and Chicago (up 3.7%), demand for apartments continues to outpace concerns about broader market turbulence.

 
3. Capital and Financing Trends that Help Investors

 

An often overlooked advantage right now is the large number of multifamily loans maturing in 2025. For investors who are prepared, it may open the door to new deals. Banks have an incentive to remove these loans from their books, and that creates paths for refinance or acquisitions at attractive terms. When combined with the generally accessible capital markets for housing, it is clear that multifamily investments can benefit from fresh financing windows. 

Key Takeaways for Investors

 

  1. Reliable Demand and Steady Income
    Housing is essential, so multifamily properties often enjoy consistent occupancy and cash flow. This reliability becomes even more appealing during market uncertainty.
  2. Gradual But Promising Rent Growth
    While not surging at double digit levels, multifamily rents are still climbing in a healthy way that can prove sustainable over the long term.
  3. Financing Opportunities on the Horizon
    With many loans coming due, lenders are looking for ways to handle these maturities. Investors who plan ahead can find openings for better purchase terms or advantageous refinancing.
  4. Potential to Enhance Property Value
    Multifamily is more than buy and hold. Strategic improvements, effective property management, and appealing amenities can boost net operating income and help a property stand out in a competitive environment.
  5. Resilience Through Different Economic Cycles
    Multifamily has shown an ability to navigate a wide range of economic conditions. It often rebounds faster than other sectors, making it a compelling choice for those focused on building wealth over time.

Final Thoughts

 

With the uncertainty we are seeing in today's market, predictability feels rare. Yet multifamily real estate continues to offer stability through steady rent growth, dependable occupancy, and a supportive financing environment. While it is never wise to jump in without thorough research, multifamily remains a prime sector for those seeking lasting returns.

If you have questions about multifamily investing or want to share your experience, feel free to reach out or comment below. In real estate, collaboration and information sharing help us all succeed.

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About Ellie Perlman
Ellie Perlman is the founder and CEO of Blue Lake Capital, a woman owned multifamily real estate investment firm focused on partnering with family offices and accredited investors to build and preserve generational wealth. Since its founding in 2017, Blue Lake has successfully acquired and operated multifamily assets across high-growth U.S. markets, completing $1B+ in transactions.

At Blue Lake Capital, Ellie and her team work exclusively with family offices and accredited investors, offering carefully curated investment opportunities that emphasize long-term wealth creation, stability, and risk-adjusted returns. A defining aspect of Blue Lake’s investment strategy is its integration of advanced AI-driven analytics and data science into the entire lifecycle of acquisitions and asset management. By leveraging cutting-edge technology, the firm executes data-driven forecasting on market trends, asset performance, and tenant behavior, ensuring strategic decision-making and optimized returns.

In addition to leading Blue Lake Capital, Ellie is the original founder and host of "REady2Scale - Real Estate Investing" podcast, which provides insights into multifamily real estate, alternative investments, and finance.

Ellie began her career as a commercial real estate attorney, structuring and negotiating complex transactions for one of Israel’s leading development firms. She later transitioned into property management, overseeing over $100M in assets for Israel’s largest energy company.

Ellie holds a Master’s in Law from Bar-Ilan University in Israel and an MBA from MIT Sloan School of Management.

You can learn more about Blue Lake Capital and Ellie Perlman at www.bluelake-capital.com.  *The content provided on this website, including all downloadable resources, is for informational purposes only and should not be interpreted as financial advice. Furthermore, this material does not constitute an offer to sell or a solicitation of an offer to buy any securities.  
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