Even with a more cautious short-term outlook, investors are finding opportunities in the multifamily sector, according to Berkadia’s Mid-Year Multifamily Pulse Survey.
“We released this pulse survey during the highest level of volatility this year—the time period following the tariff announcement,” says Josh Bodin, senior vice president of securities trading at Berkadia. “What really stood out is that despite the negativity around the elevated levels of volatility, investors still planned on carrying out their dispositions and continued to have elevated transaction expectations for this year relative to last year.”
According to the survey, 46% said they expect transaction activity to be higher this year than in 2024, while 35% expect it to remain roughly the same. Berkadia attributes this to the significant amount of dry powder on the sidelines as well as the resiliency of the multifamily sector.
Transaction activity increased 36% to $26.1 billion in the first quarter compared with $15.8 billion in 2024’s first quarter, notes Berkadia. However, this year’s first quarter total is still off the peak levels of 2021 and 2022.
Josh Bodin, senior vice president, securities trading, Berkadia
“We need some rate stability. This isn’t a question of liquidity—there’s ample debt liquidity in the market. It’s a question of cost of capital,” Bodin explains. “It’s harder to price deals with the current levels of volatility. A few months of rate stability should lead to increased investor confidence and have more money moving off the sidelines and being put to work.”
Nearly three-quarters of respondents, 74%, said they are continuing with their planned dispositions despite the volatility. Berkadia attributes this to a buildup of multifamily transactions postponed by the interest rate climate, loans that must be refinanced or properties sold, and the relative stabilization of values.
Berkadia also saw an improvement in the investment climate outlook, with 63% saying it will improve by the first half of 2026 compared with less than 35% in its original survey at the start of this year.
However, nearly half of the respondents, 45%, said they have a negative outlook for the second half of 2025, while 32% had no change in their outlook.
Bodin says managing through the uncertainty and volatility will continue to be the biggest obstacles heading into the second half of the year.
“The fundamentals for multifamily are there—new supply is waning, construction starts are light, income growth is outpacing rental growth, and the cost to rent is significantly lower than the cost to own—but navigating the general market uncertainty around economic conditions and government policies is the biggest challenge for the rest of the year,” he says.
