The US multifamily real estate market benefits from the strengths and resilience of the US economy offering attractive opportunities.
According to its investment regulations, Varia US Properties invests in US multifamily real estate properties and pursues a mid to long-term investment perspective through the following individual strategy:
- The Company acquires properties that allow for value adding measures, including refurbishment, renovation and other operating measures, in order to maximize the rent potential at limited incremental costs before looking for an attractive exit.
- The Company also aims at selectively investing in stabilized properties with limited improvement potential, such that it can benefit from secure rental income and the value growth in the mid to long-term.
- The focus is on middle-income population on secondary and tertiary markets, characterized by strong supply/ demand imbalance.
Latest Trends in the US Real Estate Market
Even amid macroeconomic uncertainty, U.S. multifamily fundamentals remain compelling. The continued absorption of new property supply creates opportunities for rent growth, while affordability constraints in the for-sale housing market feed demand for apartments. It is these strong fundamentals that give certainty and conviction in U.S. multifamily real estate over the long term.
2025 marked a turning point in transaction markets. After a period in which many investors favored low risk alternatives such as U.S. Treasury bonds, falling interest rates have begun to shift capital back toward higher yielding assets including real estate. As a result, apartment sales volumes saw a moderate increase in 2025. Large pools of debt capital are available to be deployed, and competition amongst lenders has suppressed credit spreads. At the same time, because of the decrease in interest rates, some investors are shifting from debt focused strategies back toward equity investments, thus increasing market liquidity.
The Midwest is continuing to outperform much of the country. Steady demand, measured levels of new construction, and consistent rent increases across key markets have created a more balanced environment for owners and investors. These markets have avoided the more assertive development cycles seen elsewhere, resulting in healthier pricing power and a more stable operating backdrop. At the same time, several metropolitan areas in the Sun Belt are working through an unusually large number of new units entering the market, which has placed short-term pressure on rents and required owners to be more competitive on leasing. Despite these challenges, the long range outlook for the Sun Belt remains constructive. Strong population growth, ongoing household formation, and a meaningful slowdown in new project starts point to a future environment in which supply and demand rebalance, supporting firmer rents and improved fundamentals over time.