Market Slowdown? Or Once-in-a-Decade Opportunity?

[Vincent Ribes]

2025 is off to a cautious start. With the economy flashing mixed signals, interest rates staying sticky, and recession chatter heating up, many investors are holding their breath.

But maybe opportunities are opening up for those ready to move.

We’re seeing more distressed assets, over-leveraged developers, and stalled projects that don’t pencil anymore under today’s construction costs. That’s creating serious room for acquisition especially in value-add Class B/C multifamily and workforce housing.
But it’s not all upside.

Construction and rehab costs are on the rise again:
• Tariffs on imported materials (steel, aluminum, etc.) are tightening supply.
• Lumber from Canada is getting pricier due to renewed trade friction.
• Labor shortages haven’t eased much either.

If you’re underwriting deals in 2025, you have to account for these cost escalations. There’s real value in acquiring existing product well below replacement cost.

And here’s what I’m watching closely: a rebound by Spring 2026.

If the Fed begins easing in late 2025 and consumer sentiment stabilizes, we could see:
• Renewed buyer activity
• Cap rate compression
• Rental growth re-igniting in strong secondary markets

It’s early, but the smart money is getting into position now.

If you’re looking at deals, reassessing construction budgets, or planning to scale acquisitions in the next 12 months, let’s connect. Timing the cycle is tough, but being ready is everything.

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