Key Takeaways From 2025 Connect Multifamily Event in Los Angeles

Connect Apartments 2025 was an opportunity for Gantry’s Southern California production teams to punctuate our commitment to the asset class with a strong showing at this engaging professional forum. While the conversations emphasized the California market, national and general sector trends were also discussed in a range of panels. This included a discussion on the current state of the capital markets featuring Gantry Principal Jeff Wilcox. Below are a few of the key takeaways from the day.

• Multifamily remains the most targeted asset class for both investors and lenders, with macro housing trends tilting towards a generational growth in rental demand.

• The multifamily debt markets have never been more liquid, with the GSE’s, Life Companies, Banks, Debt Funds and CMBS lenders all active and ready to fund in an improving rate climate.

• Sideline equity is not seeing the distress that was predicted in the early days or rate volatility and is turning to development in an effort to secure targeted returns.

• Affordable and workforce housing is driving the discussion on new development as elected leaders and government agencies prioritize mission driven housing. Surplus government land presents an appealing target for new development in this context.

• The limited number of development starts during the past two years makes this a good time for builders to consider starting in on new projects.

• As the increased costs of construction have stabilized to new norms, we should expect that it will not get any cheaper to build. The key to successful new development will be land acquired at a lower basis then at today’s market cost.

• Modular development is seen as a key to future efficiencies in workforce and affordable housing development although not necessarily for higher-end projects. However, inconsistencies in quality control and capitalization at manufacturers is impacting deliverables, with significant progress still required for growth.

• Rent growth in 2026 will continue in core California markets like the Bay Area, Los Angeles, Orange County, and San Diego. Nationally, markets like Austin, Nashville, Phoenix, and Dallas will improve as absorption catches up with recent construction.

• It can’t be overstated. AI and Fintech are here to stay and a growing force in the multifamily space. These tools will play an ever-increasing role in project management and property management going forward.