Multifamily Rents Remain Stable—But Loan Stress Could Unlock Buying Opportunities
OCT 09, 2025
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I. Rent Growth Is Slowing, Not Stopping
According to the September 2025 National Multifamily Report from Yardi Matrix and Multi-Housing News:
➤ U.S. asking rents remained unchanged month-over-month, holding at an average of $1,726.
➤ Year-over-year rent growth sits at 0.5%, showing resilience despite supply challenges.
➤ Sunbelt markets like Tampa (+0.9%) and Miami (+0.6%) remain bright spots, while oversupplied metros continue to level off.
While we’re not seeing the explosive growth of 2021–2022, this flattening suggests a healthy reset as absorption catches up with new deliveries.
The key takeaway? Rents aren’t crashing—they’re holding.
II. A New Wave of Supply Is Easing
The report notes that national occupancy declined slightly to 94.6%, largely due to new units coming online. But that wave is already cresting:
➤ Completions are expected to slow dramatically in 2026 and beyond
➤ Construction financing has tightened, pulling forward the end of the oversupply era
➤ In-migration and population growth continue to support demand in markets like Atlanta, Tampa, and Charleston
At Faris Capital, we’ve always targeted Class B and C assets where we can add value and operate below the price point of luxury Class A units. That strategy is even more relevant today.
III. Loan Modifications on the Rise—A Signal of Distress
While rents stay steady, the debt side of the equation is flashing yellow.
GlobeSt reports that regional banks have seen a surge in commercial real estate loan modifications, especially in multifamily and office:
➤ Many borrowers are hitting the end of their 3–5 year loans taken out during the 2020–2021 boom
➤ Rising rates and capex costs are squeezing cash flow and valuation
➤ Instead of foreclosing, banks are extending and modifying loan terms to avoid recognizing losses
While this may stave off widespread defaults, it also means some sellers will be forced to exit, especially those who overpaid or overleveraged.
For well-capitalized groups like Faris Capital, that creates unique acquisition opportunities.
IV. The Investor Opportunity: Buy the Dip, Ride the Rebound
Today’s market is defined by:
✅ Stable to growing rental income
✅ Seller and lender distress behind the scenes
✅ Fewer buyers with capital and conviction
✅ Early signs of the next pricing reset
That’s why we’re actively acquiring multifamily assets below replacement cost—and applying our proven 28-Day Full Out Transformation to unlock value quickly.
If you’re looking for:
➤ Passive income
➤ Asset-backed growth
➤ A hedge against volatility in public markets
…this is the environment to consider allocating more to real estate.
V. What’s Next
We recently launched a new multifamily investment—in a market with rising rents, limited new supply, and significant upside.
👉 Click here to reserve your spot
Or book a no-pressure call to explore the fit for your goals.
Our mission is to help investors thrive regardless of what’s happening in the market.
If you’re feeling overwhelmed by economic uncertainty, let’s talk about how real estate can add clarity and confidence to your portfolio.
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