• Off Market
  • Posts
  • 📈 U.S. Multifamily Vacancy Rates Trending Up

📈 U.S. Multifamily Vacancy Rates Trending Up

May 14, 2025

📈 Data Point 

U.S. Multifamily Vacancy Rates Trending Up

According to Markets and Data, national vacancy rates rose to 6.7% in Q1 2025, up from 6.3% the previous quarter. his marks a continued trend as supply has outpaced demand in several major markets. Cap rates also rose slightly to 5.5%, indicating greater caution among investors. Despite this, demand remains strong in select Sun Belt and Midwest metros, which are attracting interest for their affordability and job growth.

🧭 Market Watch 

Tucson, AZ Emerges as a Growth Market

Tucson saw a 5.1% rent increase over the past year and ranked among the top U.S. cities for multifamily growth. With limited new construction, occupancy remains high across Class B and Class C properties. The city’s economy is supported by the University of Arizona, healthcare, and government jobs. Investors are targeting older assets in central neighborhoods for repositioning. Rents remain below the national average, leaving room for further growth.

🧾 Rule of the Day 

T12 (Trailing 12)

The T12, or Trailing 12-month financial statement, provides a property’s actual income and operating expenses over the last 12 months. It includes revenue (rent, fees) and operating costs (utilities, maintenance, management). Unlike a pro forma, which estimates future performance, the T12 shows how the asset has actually performed. It’s a key document used during underwriting to evaluate whether the asking price is supported by actual financials. Know more.

🌱 Green Build

Properties with strong ESG practices are seeing higher values due to growing investor interest, tenant demand for sustainable spaces, and lower operational costs. According to EY, buildings that meet environmental standards often attract better tenants, stay ahead of regulations, and deliver long-term financial benefits. Know more.

🏘 Deal Radar 

Des Moines, IA

Located at 612 Bancroft Street, this Des Moines multifamily building has 12 units with strong visibility and access to nearby schools and parks. Units are fully leased, and the area supports consistent rental demand.

Spokane, WA

This 150-unit value-add portfolio is located in the heart of Downtown Spokane, covering two properties just 0.3 miles apart. Strong traffic counts and proximity to downtown amenities add to its appeal.

Kansas City, MO

Fully renovated 12-unit property in Midtown, listed at $1.6M. 100% occupied with upgraded interiors and building systems. Renovated in 2020, this property is at a walking distance to the new $350M streetcar line.

Showcase your brand/product/services in our newsletter to thousands of leaders in the restaurant industry! Contact us today to advertise with Off Market.

Disclosure: Some content in this newsletter may be sponsored or include affiliate links. Daily Menu might earn commissions or have a business interest in featured companies. Read our privacy policy.