A newly released report by Stockbridge Capital Group and John Burns Research & Consulting presents a compelling case for multifamily investment in 2025—signaling a pivotal opportunity for real estate investors focused on long-term returns.

After years of post-pandemic volatility, the U.S. rental market is stabilizing, supported by several powerful tailwinds:

• Undersupplied Housing Market: The U.S. faces a housing shortfall of at least 1.2 million units—more than half of which are rental homes. This ongoing imbalance between supply and demand is expected to support both occupancy and rent growth for the foreseeable future.


• Pullback in New Construction: Multifamily starts fell 25% in 2024 as developers contended with high capital costs, policy shifts, and restrictive financing. The result: a more favorable environment for existing communities with less future competition.


• Rising Rentership: Affordability challenges have widened the rent-versus-buy gap to a 20-year high. Entry-level homeownership now costs nearly double that of renting, keeping millions of households in the rental market—by necessity and choice.


• Generational Shifts: Delayed milestones among Millennials and Gen Z—such as marriage and homeownership—are extending the renter lifecycle and reinforcing demand for high-quality rental housing.


• Attractive Pricing for Investors: Multifamily asset valuations have dropped 14% from their 2022 peak, creating what Stockbridge calls a “buy-low” environment. With less competition and improving fundamentals, today’s acquisitions could lead the next investment cycle.

For Cavan Companies and our investor community, the findings align with our continued belief in the long-term strength of the Build-to-Rent model. As the U.S. housing landscape evolves, purpose-built communities like The Bungalows® are well-positioned to deliver enduring value through stability, scale, and lifestyle-driven design.