Walker & Dunlop Report: Are Investors Still on the Sidelines?
Although the year started slowly, investor interest is picking up strength, a survey by Walker & Dunlop at an NMHC conference reveals.
Some 67 percent of top multifamily housing executives believe that the national vacancy rate will decline, according to the findings of a Walker & Dunlop survey conducted during the recent NMHC Apartment Strategies Conference. Only 47 percent of respondents believe office space conversions are a viable solution for addressing multifamily and affordable housing shortages. And 34 percent feel the Sun Belt displays the greatest opportunity for multifamily housing investment during the first half of 2025.
“The survey results reflect the optimism we saw at the conference, and while 2025 started slower than expected, recent activities suggest confidence is translating into action,” Don King, executive vice president, Walker & Dunlop, told Multi-Housing News.
King noted that investors are adjusting to the current rate environment and are taking advantage of attractive financing opportunities as they come about, particularly during 10-year treasury rallies.
“Recent weeks have been the most active of the year, with the market finding its footing and demonstrating strong signals of growing momentum in multifamily transactions,” he said. “Investors are no longer waiting on the sidelines.”
Industry bright spots
Conducted in late January, the survey of 160 respondents found that 51 percent possess a positive feeling about opportunities in the multifamily sector in 2025. Yet, approximately 33 percent have a neutral sentiment and another 16 percent a negative sentiment.
Some 29 percent of respondents anticipate the Southeast market to outperform the average nationwide, while 22 percent expect the Northeast market to outperform. Another 19 percent foresee the Midwest market outperforming, and 14 percent predict the Sunbelt market to outperform.
In contrast to the 34 percent who believe the Sunbelt shows the greatest promise for first-quarter 2025 multifamily housing investment opportunity, 24 percent believe that the Midwest region offers the most promise. Another 21 percent think it is the Northeast and the remaining 19 percent believes it’s the west.
