Home values have grown twice as fast since the start of the pandemic

Mapped: The Most Walkable Cities in the World and 12 more real estate insights

March 11, 2025

Latest Rates

Loan Type	Rate	Daily Change	Wkly Change	Monthly Change	Yearly Change	52-Wk Low/High
30 Yr. Fixed	6.72%	-0.07%	-0.02%	-0.29%	-0.13%	6.11% / 7.52%
15 Yr. Fixed	6.18%	-0.02%	-0.05%	-0.23%	-0.21%	5.54% / 6.91%
30 Yr. FHA	6.14%	-0.03%	+0.01%	-0.24%	-0.24%	5.65% / 7.00%
30 Yr. Jumbo	6.97%	-0.02%	-0.08%	-0.33%	-0.25%	6.37% / 7.68%
7/6 SOFR ARM	6.42%	+0.07%	+0.10%	-0.36%	-0.09%	5.95% / 7.55%
30 Yr. VA	6.16%	-0.04%	+0.00%	-0.24%	-0.24%	5.66% / 7.03%

Real Estate Trends

Multifamily construction is slowing down, with new starts dropping 25% in 2024 and expected to fall another 11% this year to 317,000 units. However, completions remain high, with one million units still under construction—the most since 1973.
The NAHB’s Multifamily Production Index (MPI) scored 48 in Q4 2024, signaling continued uncertainty among builders. In contrast, the Multifamily Occupancy Index (MOI) climbed to 81, reflecting strong rental demand despite recent rent declines.
Low unemployment may drive household formation as more young adults aged 25 to 34 move out from their parents’ homes. With limited single-family home availability and homeowners locked into low mortgage rates, many will turn to renting instead.
link

The surge in apartment construction has pushed operators to offer longer leases to manage vacancies. The average new lease length increased 7% to nearly 13 months, while renewals rose 5% to 12 months.
This shift helps operators reduce simultaneous vacancies and align unit availability with projected lower supply in the future. Renters now have more options than ever, forcing landlords to compete on lease terms.
The trend started in 2023 as new unit deliveries spiked, making lease extensions the highest in a decade. Pre-2020, new leases averaged 12 months and renewals 11.5 months, showing a clear market adjustment.

Image

U.S. home values surged 45.3% since February 2020, cramming 11 years of typical growth into just five years. Miami saw the highest increase at 61.1%, followed by Charlotte, Hartford, Tampa, and San Diego.
Mortgage payments on a typical home have jumped 80.6%, adding $1,032 per month due to rising home values and higher interest rates. In 12 markets, monthly payments have more than doubled.
Rents increased 33.4% nationwide, with Miami leading at 54.1% growth. The Bronx saw the sharpest rent spike in NYC at 42.3%, driven by new developments, while Queens rents rose 27.7% as affordability pressures pushed renters out of Manhattan and Brooklyn.

Multifamily construction starts are down 40% from their 2022 peak, yet Yardi Matrix has increased its forecast for 2025 and 2026 completions. Projected completions for 2025 are now 525,000 units, a 3.3% increase, while 2026 completions are expected to rise 11.5% to 414,000 units.
Despite fewer new starts, the number of units under construction remains high, ensuring a strong pipeline for 2025. This will be the second-highest annual new supply since the 2008 financial crisis, just behind 2024.
Slower construction timelines mean some projects won’t finish until 2026, delaying the supply bottom until 2027. This suggests that supply will remain elevated despite fewer new starts.
link

Location Specific

Texas saw nearly 120,000 new apartments delivered in 2024, but supply is set to drop by about half in 2025, with only 70,000 units expected. By 2026 and 2027, deliveries will fall further to 45,000-50,000 units, the lowest since 2013.
Multifamily starts have plummeted from 114,000 units in 2022 to just 38,800 in 2024, signaling continued supply constraints. Major slowdowns have hit Houston, Austin, and Dallas, with Houston seeing its lowest starts since 2010.
Dallas remains the state leader with 15,600 units starting in 2024, but that’s still down from 21,900 in 2023. Austin and Houston starts are at decade lows, with Austin’s 2024 starts dropping by 17,000 units from its 2022 peak.

Proptech startups that just got funded

Pro Member Only Content Below

Most of the insights below stem from extra research and include content from paid sources and special reports.