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or the first time since 2021, tenants are leasing apartments faster than developers can deliver new ones. This imbalance is expected to benefit multifamily owners as they navigate the aftermath of Trump's trade policy changes. According to Cushman & Wakefield data, around 102,000 units were leased out in the first quarter of 2025, while only about 95,000 new units came online.

    This trend is likely to continue, with record-breaking deliveries in 2024 expected to slow significantly over the next two years. Higher borrowing costs and tariffs are already taking a toll on construction, with the national pipeline reaching lows not seen since 2018. There are currently only 545,357 units under construction, less than half of what was underway two years ago.

    Multifamily owners who weathered the downturn from 2022-2024 are now poised to benefit from the shift in supply and demand. Asset values have begun to stabilize after dipping 20-30% during the previous period of high new deliveries and stagnant rent growth. The average national rent has started to tick up, with a notable increase in January that ended a six-month decline.

    Meanwhile, still-high mortgage rates are expected to keep would-be homebuyers on the sidelines, further pressuring supply as deliveries decline. This perfect storm is likely to drive up multifamily values, with 83% of investors surveyed by Berkadia planning to make an acquisition in 2025.