Flat Home Prices “Mirror” 1990s: Small Multifamily Bound for Major Upswing

BiggerPockets Blog
Published: November 18, 2025
Pricing & Profitability

Summary

This article discusses the current state of the real estate market in 2025, with a focus on opportunities for investors. While the multifamily market is facing challenges, the article suggests small multifamily properties may offer a good investment opportunity for individual investors. Hosts should consider the potential for long-term wealth building through small multifamily purchases.

Key Insights

  • The article suggests that small multifamily properties are a good opportunity for long-term wealth building, while larger commercial multifamily assets are facing challenges.
  • Pricing is starting to ease in some places, and interest rates have fallen slightly, creating some threads of a silver lining in the market.
  • The residential market in 2025 has been slower than expected, and commercial real estate was almost non-existent for the first half of the year.

Action Items

  • Consider small multifamily as a potential investment strategy for long-term wealth building.
    Effort: low
    Impact: medium

Common Mistakes

  • Getting into commercial multifamily too early might result in languishing value for a long time before the value starts to increase and erode your returns.

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