25
May 2025
May 2025 »
C O V E R S T O R Y
IV.
Supply Constraints:
Affordability Problems Persist
(Insights from Jiayi Xu, Realtor.com)
"A decline in multifamily permitting today
signals fewer new rental units in the pipeline,
which could result in a tighter rental supply in
the coming years."
"Higher construction costs can delay or deter
new multifamily development, especially for
projects operating on tight profit margins."
"The sharp rent growth in cities like Miami and
Nashville can largely be attributed to increased
demand since the pandemic, fueled by the rise
of remote working."
"The decline in construction activity will reduce
future rental supply, exerting upward pressure
on rents."
Gross Rental Yields
» Gross rental yields are declining in
nearly 60% of counties nationwide.
(Rob Barber, ATTOM)
» Median annual gross rental yield for
counties with populations under 1
million: 7.5%. Median annual gross
rental yield for counties over 1 million
population: 6.1%. (Rob Barber, ATTOM)
Regional Watch: High Growth
Cities
» Miami's unemployment rate stood
at 3.2% in February 2025; Nashville's
at 2.9%, fueling rent surges. (Jiayi Xu,
Realtor)
Construction Pipeline Warning
» The U.S. is experiencing the lowest
number of multifamily construction
permits since 2017. (Jiayi Xu, Realtor)
V.
Long-Term Outlook and
Strategic Responses
"The fact that rents remain elevated above pre-
pandemic levels suggests that rental prices are
likely to remain high in the near future." —Jiayi Xu
"Providing high-quality amenities such as
fitness centers, communal gardens, and
recreational facilities helps attract and retain
tenants." —Doug Ressler
"Policies that reduce construction costs—
such as tax incentives and subsidies—can
encourage new development, boost rental
supply, and help improve affordability." —Jiayi Xu
"Financial sectors could create tailored financial
products for multifamily developments with
affordability initiatives." —Jiayi Xu
