For multifamily’s biggest public companies, especially those with a stake in the Sun Belt, 2025 looks to be a year of transition.
Eric Bolton, the outgoing CEO of Memphis-based REIT MAA whose departure is effective April 1, expects supply to “materially moderate,” especially into the summer leasing season.
“While it will take some time for the recovery momentum to build, it seems clear that the tide is starting to turn, and we look forward to a productive spring and summer leasing season when the improving trends will have a more obvious compounding impact on overall portfolio results late this year and into 2026,” Bolton said on the REIT’s earnings call in February.
On the coasts, the situation is a little clearer. With major employers mandating that workers return to the office in San Francisco and Seattle, those two tech-centric metros are showing major signs of improvement.
“While we did include some further recovery in downtown Seattle and San Francisco in our guidance, both markets have the potential to outperform, if we get more robust pricing power early in the year,” EQR Chief Operating Officer Michael Manelis said on the Chicago-based REIT’s fourth-quarter earnings call in February.
However, there is some uncertainty around the Los Angeles area, as it recovers from wildfire damage, and Washington, D.C., where Trump administration cuts to the federal workforce and budget could hurt apartment owners.
Washington, D.C., was EQR’s top-performing market, with 4.2% revenue growth in Q4, and the firm has high expectations for 2025.
“The wild card here is what impact the new administration and its focus on both cost-cutting and a return-to-office policy for federal employees will have on the local job market,” Manelis said.
Read on for more details about the REITs’ outlooks for 2025.
