Housing Market Cooling in Q4 2024, Warming in 2025

Price growth for single family homes is weakening and could slow further through the end of the year, but underlying drivers of housing demand point to stronger growth in 2025. In the apartment market, rent growth in 2024 has followed a similar trajectory as 2023, but as new apartment supply is expected to decline through 2025 and into 2026, continued growth among the renter population will bring stronger performance for apartment assets at the same time as (expected) lower interest rates should fuel more sales activity for multifamily properties. The apartment market may be cooler in late 2024, but investors are ready for a much hotter market in 2025.