Real Estate News - October 2025

Investors Revisit Vintage Multifamily Assets

In today’s high-cost capital environment, smaller and older multifamily buildings are drawing renewed investor interest—driven in part by the accessibility of agency financing.

A tale of two sectors: While 2025 office transactions generally reflect the age of the existing stock (most built in the 1980s), multifamily deals tell a different story. Recent acquisitions are skewing older—often from the 1960s or earlier—even in markets where the typical inventory is decades newer.

Legacy stock still standing: The 1960s construction boom added more than 76,000 multifamily buildings, primarily smaller assets that continue to make up a large share of the market. In later decades, development shifted toward fewer but larger complexes, leaving these mid-century properties especially prevalent in the Northeast, Midwest, and established coastal metros.

Vintage deals take the lead: In 31 metros, the median multifamily property sold in 2025 was built in the 1960s or earlier. Markets such as San Francisco, Baltimore, and New Orleans saw traded assets more than 30 years older than their median stock. Only a handful of metros—like Raleigh and Las Vegas—broke the pattern with newer sales.

The financing factor: Older, smaller multifamily properties demand less equity and offer easier access to capital in a constrained market. Many also qualify for agency financing—affordable, reliable loans from Fannie Mae and Freddie Mac—available only for stabilized residential assets. This access may be directing more capital toward vintage buildings by simplifying and accelerating the financing process.

Looking ahead: In a market where capital remains tight, investors are favoring older multifamily properties—not out of nostalgia, but for their financing flexibility and lower barriers to entry. Expect this trend to persist until capital conditions ease or pricing on newer assets adjusts.