Impact Growth Capital Newsletter

 This week at IGC:
Multifamily Jumps 33% YoY - Brookfield Deploys $16B to Snag Distressed Deals

Real Time Market Snapshot

Data as of 5/7/2025

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Economics

Multifamily Investment Jumps 33% as Demand Rebounds Nationwide

Multifamily investment rose 33% year-over-year in Q1 2025, totaling $29.4 billion—the strongest start to a year since 2022. The rebound is driven by falling vacancy rates, which declined to 4.6% nationally, down from 5.2% a year ago. Major Sun Belt markets like Dallas, Atlanta, and Phoenix are seeing especially strong absorption, as population growth and job migration continue to boost demand.

Rents are also trending up. The average effective rent increased 2.1% year-over-year to $1,729, with the Southeast and Midwest leading regional gains. Class B and C assets are outperforming Class A in many metros, as affordability drives leasing activity in older, well-located buildings. Cap rates are holding steady between 5% and 5.5%, keeping institutional capital active despite higher debt costs.

These figures tell a clear story: the multifamily market isn’t waiting for permission to recover—it’s already in motion. With vacancy rates compressing and nearly $30 billion flowing back into deals, investors are shifting from caution to calculated offense. Instead of chasing speculative growth, the focus has turned to properties with real, measurable upside—especially in markets where supply is limited and rent growth is proving sticky. The window to buy at a discount is narrowing, and the data suggests that those still on the sidelines may miss the most favorable entry points of this cycle.

Private Capital

Brookfield Deploys $16B to Snag Distressed Deals

Brookfield Asset Management has just closed a record $59 billion across its latest flagship funds, including $16 billion dedicated solely to real estate. What’s catching investor attention? The firm is laser-focused on acquiring distressed assets at discounts of up to 40%, capitalizing on rising interest rates, tighter credit markets, and refinancing challenges that are creating a wave of opportunity. With many owners struggling to hold onto assets in today’s climate, Brookfield is stepping in as a well-capitalized buyer.

This move is a clear bet on a long-term recovery. Brookfield believes that many of today’s distressed deals are temporary mispricings, not indications of fundamental asset failure. They’re looking at office, multifamily, and mixed-use properties in major markets—areas hit hard by shifting demand and higher debt costs. The firm’s approach isn’t just opportunistic; it’s a reminder that downturns often offer the best entry points for those with capital and conviction.

For investors watching from the sidelines, Brookfield’s aggressive play offers two lessons: First, liquidity is power. Second, market dislocation can create generational buying opportunities. While most retail investors don’t have billions to deploy, the principle still applies—distress can signal a moment to lean in, not back off.