Market Overview
The final quarter of 2024 reflected a gradual strengthening in U.S. commercial real estate fundamentals, particularly in key multifamily markets such as Texas. Cities including Dallas, Houston, and Austin continued to show strong absorption trends, supported by steady rental demand and improving occupancy performance.
Across the broader market, indicators such as effective rent growth and concession levels began showing early signs of stabilization. This suggested that the multifamily sector was moving through the later stages of a correction cycle and entering a more balanced phase. At the same time, interest rate expectations remained uncertain. While earlier projections anticipated faster rate cuts, inflation proved more persistent than expected, leading to a slower policy adjustment path from the Federal Reserve.