The market may be uncertain, but not everything is unstable.
If you’ve been watching headlines lately, you’ve probably seen the words volatility, pullback, and reset used often, especially when it comes to commercial real estate. And while there’s truth to the challenges some sectors are facing, here’s what’s not making the news nearly enough: multifamily is quietly holding steady.
According to Green Street’s July 2025 Cap Rate Observer, cap rates for average-quality multifamily properties have been virtually flat so far this year. That may sound unremarkable, but in a market defined by rising rates, shifting capital flows, and continued price discovery issues, flat is a good thing. It signals resilience.
Why Cap Rate Stability Matters
Cap rates reflect the balance between risk and expected return. When cap rates spike, it typically means values are falling, or risk is perceived to be rising. So when multifamily cap rates are steady, it tells us something important: investors still have confidence in the long-term fundamentals of the sector.
Meanwhile, other sectors are telling a different story:
- Office cap rates remain in the double digits in many markets, with values down as much as 55% from peak.
- Self-storage has seen a 25% decline in value since 2022.
- Even single-family rentals are showing downward price pressure in several key metros.
In contrast, multifamily assets are seeing flat or gently adjusting cap rates, with values down about 26% from peak, but showing signs of leveling out. In other words, multifamily has had its correction, but it didn’t break.
What This Means for Passive Investors
If you're a passive investor looking for income, stability, and a risk adjusted upside, the big takeaway is this: Multifamily remains one of the most reliable real estate sectors in today's market.
Here’s why:
- Debt is still available. Agency financing is accessible in the low-to-mid 5% range, creating a positive spread for many deals.
- Demand remains solid. While homeownership affordability remains out of reach for many, well-located apartments continue to attract renters.
- Valuations have reset. With prices still below peak, today’s market may offer stronger entry points than we’ve seen in years.
And unlike sectors where volatility or obsolescence are major concerns, people will always need a place to live. That’s why we believe multifamily continues to strike the right balance between risk and reward.
Final Thought
Markets don’t need to be soaring for investors to build wealth. In fact, some of the best opportunities emerge during quieter periods. When fundamentals are sound, values have adjusted, and capital has been patient, that’s when investors step in to position themselves for meaningful long-term gains rooted in discipline over hype.
So while the headlines focus on what’s faltering, we’re focused on what’s holding strong. And multifamily continues to be one of the most dependable places to invest.
If you’d like to learn more about current opportunities we’re seeing, or how we’re positioning for the next cycle, we’d love to connect.
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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.