A Coast-to-Coast Look at 125 Apartment Investment Markets
Apartment investment activity in the United States in 2025 is being shaped by a nuanced set of trends across a wide spectrum of cities, according to new CRED iQ data ranking the top 125 multifamily markets. New York and Los Angeles remain far ahead of the pack in both origination volume and aggregate values, together accounting for over $9 billion in new loans and nearly 47,000 units. The New York metro’s total multifamily property value is more than $12.8 billion, illustrating an unmatched scale driven by population density and supply constraints. Los Angeles similarly benefits from entrenched rental demand and escalating asset prices, serving as an anchor for the western region.
Outside the highest-profile metros, Sun Belt cities show unmistakable momentum. Dallas places fourth in the rankings with 26,765 tracked units and high investor engagement in affordable and mid-tier apartments, while Miami and Houston build on demographic migration and job growth as top 10 markets.
Phoenix and Chicago—though lower in aggregate value per unit than the coastal giants—demonstrate steady resilience with persistent demand for both Class A and value-add properties. Kansas City, which holds the 31st position, exemplifies the solid performance in the Midwest; deals such as the WaterCrest at City Center (306 units, $44.8 million in financing) provide evidence of high occupancy and well-balanced underwriting that supports local sector stability.
Some smaller and emerging markets display notable growth. Raleigh, ranked 19th, distinguishes itself with strong property value appreciation linked to its tech sector, as seen at The Corners Apartments at Brier Creek, which secured a $35 million refinance at a conservative 49 percent loan-to-value ratio and a robust debt service coverage ratio of 2.08. Nashville, at 20th, stands out for entertainment-driven demand and steady absorption—part of a narrative that spans smaller MSAs where investors increasingly search for liquidity and diversification in comparison to crowded coastal markets.
On the West Coast, Riverside (ranked 29th) offers a counterpoint with green-certified assets such as The Esplanade at Riverwalk, where a $110.5 million acquisition loan for 588 units reflects cautious lending and competitive cash flows, but also the pressures of high expense ratios in California’s tight rental environment.
Outliers like Las Vegas (26th) stand out more for new projects and volatility than for sustained investor confidence. The Elysian at Post’s recent $67.4 million loan underscores a strategy of conservative leverage in new construction, with underwritten occupancy near 91 percent but an LTV just above 55 percent to buffer against swings in demand.
In contrast, laggards in the rankings—such as some sluggish Midwest or secondary Southern metros—are characterized by slower growth, lower volumes, and higher risk, especially in the face of rising interest rates and cap rate adjustments, though specifics on the weakest performing cities were not detailed in the available data.
Across the top 25 MSAs, total multifamily loan originations exceed $50 billion so far in 2025, with average loan-to-value ratios in the chart clustering between 60 and 65 percent. Conservative underwriting persists regardless of geography, as deals across varied markets continue to emphasize debt service coverage ratios (ranging from 1.4 to over 2.0), occupancy above 90 percent, and the emergence of ESG-tied certifications—40 percent of reviewed properties touting green features.
Source: GlobeSt/ALM