As we navigate the second half of 2025, the multifamily sector continues to present opportunities, fueled by persistent demand and a slowdown in new supply.
In 2024, net absorption exceeded 546,000 units, marking the second-highest total in over four decades and underscoring the sector’s long-term resilience. With construction tapering and demand remaining stable, markets across the country are poised to continue experiencing these shifts in varying ways, as outlined in the Marcus & Millichap Investment Forecast.
Institutional investors remain focused on opportunities that deliver both strong returns and lasting value. Many are concentrating on stable markets and asset types, while closely tracking shifting renter preferences, evolving amenity expectations, and the importance of operational excellence. As the sector progresses through the remainder of 2025, we can identify which opportunities are gaining traction and the key factors shaping their success in the months ahead.
Laura Khouri, president and chief operating officer, Western National Property Management.
Market and Asset Type Outlook: Where the Rebound Will Be Strongest
The post-pandemic landscape continues to reshape migration patterns and renter demand, creating clear winners in markets with strong job growth and manageable new supply. In the coming quarters, certain regions are positioned to see stronger occupancy and rent gains than others, as construction activity slows and renter interest remains resilient.
California, particularly Orange County, has demonstrated notable stability. At the same time, the Sun Belt continues to lead the way, with nearly two-thirds of its metros offering below-median rents and above-average job growth, according to Marcus & Millichap. Larger markets are absorbing new deliveries with relative ease, while smaller cities benefit from a healthy supply-demand balance. Suburban demand is also on the rise as renters prioritize affordability, additional space, and green access while remaining within reach of major metros.
On the asset side, both workforce and affordable housing remain critical in high-cost urban areas where job growth continues to outpace homeownership affordability. Luxury rentals also continue to perform well, especially among younger renters driven by lifestyle and location preferences. With the median age of first-time homebuyers now at 38, many individuals remain in the rental market and favor high-end living that aligns with amenities and urban identity.
As investors look to deploy their capital, keeping these shifting market dynamics and renter preferences in mind will be essential to identifying the strongest opportunities for growth and long-term stability.
Operational Efficiencies: The New Benchmark
Operational excellence remains a key standard for multifamily assets aiming to attract institutional investment. Properties that meet owners’ specific goals, strong resident retention, and disciplined cost control are capturing the attention of major funds.
As the property management arm of Western National Group—a fully integrated firm spanning acquisition, development, construction, and management—Western National Property Management (WNPM) brings an ownership mindset to every asset it manages. This reflects a broader trend among leading property management firms, where strategic, portfolio-wide oversight is combined with localized management to ensure decisions are thoughtful, proactive, and centered on both client and resident needs.
WNPM uses advanced technologies to streamline after-hours service requests and monitor property and market performance, allowing the firm to stay ahead of operational trends. The firm conducts regular safety and loss prevention walks as well as monthly tailgate meetings to proactively manage risk, especially as insurance costs remain elevated. The firm’s comprehensive approach to operations enables effective stabilization even under challenging conditions. During a recent 90-day takeover of a distressed portfolio, the team applied a structured transition strategy that achieved a 30% occupancy increase within three months while maintaining resident satisfaction from the outset.
Operational centralization further strengthens performance. By streamlining marketing, training, risk management, and CapEx support through in-house departments, the firm enables on-site teams to focus on what matters most: resident satisfaction, leasing velocity, and maintenance responsiveness.
As investors seek resilient assets in a shifting market, partners who exemplify tailored, forward-thinking strategies will be the ones to deliver lasting value.
The Importance of Training: Navigating Labor Challenges and Lease-Up Success
A critical, often overlooked component of asset success is the strength of the property management team. The labor market remains tight, with competition for skilled property managers and leasing agents intensifying. Leading firms are investing in robust training programs to ensure staff can navigate lease-up complexities, address resident concerns efficiently, and uphold high service standards.
A leader in the multifamily industry, WNPM launched its Western National University (WNU) in 2010, a comprehensive training platform that aligns employee development with both corporate goals and individual career paths. One standout initiative is the Training Advisory Group (TAG), a peer-to-peer mentorship program that pairs each new associate with a seasoned leader from day one, providing immediate, structured support and accelerating on-site readiness.
Additional leadership development programs provide associates with direct insights from decision-makers, helping them better understand the broader multifamily landscape and how to best serve their properties and residents.
For institutional investors, these training initiatives are a strategic advantage when selecting stable assets. Well-trained and engaged teams drive smoother lease-ups, higher resident satisfaction, and lower turnover which are key contributors to operational consistency, risk mitigation, and long-term value creation.
Amenities: What’s Hot in 2025
Amenities remain key drivers of leasing velocity and tenant satisfaction. In today’s market, renters are prioritizing features that enhance convenience, connectivity, and wellness. High-speed internet, secure package delivery, fitness centers, and flexible communal spaces are in strong demand.
- Co-working spaces and private offices – With hybrid work now permanent, dedicated remote-work areas are a must-have.
- Wellness-focused amenities – Mindfulness rooms, outdoor fitness areas, social spaces, and rooftop terraces are key differentiators.
- Smart home technology – Contactless entry, smart thermostats, and app-based maintenance requests enhance convenience.
- Community-driven experiences – Events such as resident mixers, networking opportunities, and pet-friendly activities foster belonging.
- Activated ground-floor retail – Partnering with nearby restaurant/cafes, fitness studios, or service providers can create a seamless, vibrant community experience.
Owners and property managers who stay attuned to evolving preferences ensure that amenities are thoughtfully curated to match both the target demographic and local market. Over-investing in costly features that don’t align with resident demand can erode returns. As a result, investors are increasingly drawn to assets with amenities that not only drive leasing velocity but also foster resident loyalty and long-term retention.
Looking Ahead: Positioning for Success
The multifamily sector currently reflects a market in measured transition. Institutional capital remains engaged, but investors are placing greater emphasis on operational performance, stability, and alignment with current renter preferences. Properties that combine experienced management with thoughtfully curated amenities in resilient markets demonstrate the strongest performance and continue to deliver long-term value.
Laura Khouri is president and chief operating officer of Western National Property Management.
