Freddie Mac’s newly released Outlook forecasts multifamily originations to rise in 2025, while predicting modest rent growth below the long-term average and a slight increase in vacancy rates, which will remain above the long-term average. Analysis notes that through the end of 2024, despite strong demand, record-high supply kept market fundamentals muted. …Freddie Mac’s research indicates that despite short-term pressures, multifamily will likely remain a favored asset class over the long term. …The Outlook forecasts disparate performance across the nation, with many of the larger Sun Belt and Mountain West markets seeing very high levels of supply causing performance to lag. Conversely, markets with lower supply levels, especially smaller, secondary and tertiary markets in the Sun Belt along with larger coastal and gateway markets, are expected to see stronger performance in 2025.