Kimberly Byrum, managing principal of Multifamily Advisory at Zonda, MFE’s parent company, will unpack the complexities of rising costs, economic uncertainty, and evolving market fundamentals during her semiannual webinar May 1. MFE caught up with Byrum prior to her webinar to hear about the trends she’s watching and what’s making her optimistic.
What makes you optimistic for the multifamily industry in 2025?
High-pipeline markets continue to absorb the units delivering, which is good news, and the job market continues to hold up for now. We continue to see strong resident renewals with lease trade-outs positive even in markets where new pipeline is putting pressure on market rents.
What’s a market trend you're watching closely that could significantly impact multifamily in the second half of 2025?
I’m studying markets that are prime for future growth based on the current administration’s focus on U.S. “resilience.” The targeted sectors include energy and rare minerals (for battery plants), pharmaceuticals, tech/artificial intelligence, and semiconductors. My team is spending a lot of time working with clients on supporting future development underwriting as capital scarcity has put pressure on pro forma rents.
Which metro areas are at the greatest risk of oversupply and where do you see opportunity due to underbuilding in the short term?
I am continuing to watch the pipelines in Austin, Texas, and Phoenix. Phoenix is holding up under the pressure of supply due to the strong overall fundamentals. The central and Gulf Coast Florida markets are holding strong occupancy despite high levels of deliveries.
For more information or to tune into Zonda’s Multifamily Market Update, visit https://event.on24.com/wcc/r/4900108/E18ADE0633504F2FCA43471283C0C8E6.
