Multifamily continues to anchor CRE investment, even as capital flows broaden across other sectors. Data from Agora shows that multifamily captured nearly half of all capital raised in 2025, reinforcing its position as the industry’s most consistent investment category.
Housing-related assets dominated fundraising overall, the report said. When combined with other residential investments, including single-family rental portfolios, residential accounted for more than 60% of total capital raised. The strong showing reflects investors’ continued focus on housing demand as affordability challenges keep many households in the rental market.
Industrial real estate also gained momentum, particularly in the second half of the year, as returns accelerated amid ongoing demand for logistics and distribution facilities tied to e-commerce growth and evolving supply chains.
Other sectors posted more modest gains. Mixed-use and retail projects attracted interest as investors pursued lifestyle-oriented developments that combine residential, retail and entertainment components. Hospitality remained steady, drawing capital from high-net-worth investors and family offices seeking diversification and exposure to travel demand.
Quarterly fundraising trends show how investor priorities shifted throughout the year. Multifamily dominated early in 2025, accounting for more than half of capital raised in the first quarter before moderating toward year-end. Meanwhile, residential investments outside traditional multifamily steadily gained share, reaching their highest levels in the fourth quarter.
Retail and mixed-use activity strengthened mid-year, while industrial investment surged in the third and fourth quarters. Office investment remained selective, with demand largely focused on smaller Class B and Class C properties rather than large institutional towers. Hospitality maintained a steady presence, while infrastructure saw limited fundraising activity, although interest in the sector is growing, said Agora.
Regional dynamics also shaped investor outcomes. The Southeast led in both capital deployment and returns, supported by strong population growth, expanding multifamily demand and development in adjacent sectors such as retail and self-storage.
Texas, New York and Florida ranked among the most active states, with Florida notable for the number of investor contributions. Emerging Southern markets also attracted increasing attention from investors seeking higher-growth metros.
Year-over-year performance reflected those trends. The Southeast recorded one of the strongest gains, with returns rising more than 12 percentage points compared with 2024. Florida’s returns increased more than five points, while California posted a slight decline. Elsewhere, the Midwest delivered steady results and saw a late-year improvement in returns, while the West experienced volatility before rebounding in the fourth quarter.
Source: “Multifamily Leads Fundraising as Investors Position for 2026“
