The real estate story is far from over, even though the year is coming to an end. As Q4 approaches, there are preliminary indications of shifts in supply, demand, and operations throughout the multifamily market in the United States. At Pheenyx Capital, we take action rather than merely watching. Here are three current trends, along with data, implications, and leadership positioning. 

Demand Remains Resilient Even as Rent Growth Softens 

What the data currently indicates  

• The United States saw the largest annual absorption on record through mid-2025, with over 794,000 flat units absorbed over the last 12 months.(RealPage) 

• Despite economic challenges, absorption reached approximately 227,000 units in Q2 2025 alone, driving year-over-year demand to all-time highs. (RealPage) 

• However, rent growth is slowing: the national asking rent growth in Q2 2025 was only 0.9% year over year, compared to 1.2% in Q1. (costargroup.com) 

• In many markets, vacancy rates are still high. By the end of the year, Freddie Mac predicts that vacancy rates will gradually approach 6.2%. (mf.freddiemac.com) 

What it means going into Q4 

Although there is a high demand, landlords must strike a balance between maintaining occupancy and raising rents. Concessions and incentives might continue in competitive markets. Pricing power may reappear in secondary or tertiary markets where supply is limited.  

How Pheenyx acts now 

We focus twice as much on markets with demographic tailwinds, limited supply additions, and robust job growth. Instead of pursuing aggressive rent escalations, we tend to favour value-add repositioning where operational improvements can generate NOI. 

New Supply Is Slowing: A Supply Crunch May Be on the Horizon 

What the data shows now 

• New deliveries in Q2 decreased 22% year over year, despite the fact that 2025 is still seeing high development. (Cushman & Wakefield) 

• Less than 500,000 units are still being developed nationwide, the fewest since 2016. (Cushman & Wakefield) 

• It is anticipated that new completions in 2025 will decrease by about 21% from their peak levels in 2024. (Axios) 

• Even as construction slows down, more units are being absorbed by some markets, particularly in the South. For instance, Atlanta is responsible for about 6,400 of the metro’s anticipated 17,500 completions. (Axios) 

Implications for Q4  

Particularly in markets where demand is still high, upward pressure on rents may resurface as supply growth slows. The already undersupplied markets will probably do better.  

Pheenyx’s current behaviour  

We concentrate on purchases in markets that are about to experience periods of undersupply. In order to prevent overexposed and overheated markets, we also keep an eye on permit pipelines and construction starts. When we renovate, we increase competitive advantage in areas with limited new supply by pushing efficiencies. 

Technology, Efficiency & Cost Control Are No Longer Optional 

What the data shows now 

• AI, automation, and smart systems for leasing, maintenance, and the tenant experience are being adopted more quickly in the real estate sector. (Times Union) 

• Small increases in operational effectiveness in property management can result in significant profit increases, particularly in a market where flat rents are rising.  

• Controlling operating expenses becomes a differentiator in the face of tighter capital markets and elevated interest rates. 

What it means going into Q4 

Tenant-responsive, tech-enabled, and operationally lean properties will perform better than those that fall behind. The value difference between “well-run” and “poorly-run” assets will increase in Q4 and beyond.  

How Pheenyx Acts Now: 

From day one, we make investments in technology, including energy retrofits, tenant portals, digital leasing, and predictive maintenance. The objective is to minimise volatility throughout market cycles and maximise NOI growth. 

Why Q4 2025 Is a Pivotal Window, And Why You Want to Be With Pheenyx 

• Timing is crucial because, as we move into Q4, many markets are stabilising, so choices made now will lock in hold tactics, dispositions, or refinance dates. 

• Data-driven agility: At Pheenyx, we monitor rent growth, absorption metrics, permit data, and demographic trends in real time. We act rather than speculate. 

• Active rather than passive: We take advantage of trends rather than merely following them. Every asset is managed for margin expansion, and every acquisition is put through a series of stress tests.  

We already know from 2025 that those who make smart decisions in the last quarters will win, not those who waited. Let’s get in touch if you’re prepared to go from observing to taking part. 

At Pheenyx Capital Investment, we don’t just invest in buildings. We invest in the future of your wealth.