January Newsletter

By Jesse Etherington

If there’s one real estate sector still drawing investor interest in 2025, it’s multifamily, and for good reason. According to a recent CBRE report, steady renter demand, recovering occupancy rates, and slowing new construction are setting the stage for strong investment potential in the coming year.

Despite rising interest rates and a flood of new supply hitting the market, vacancy rates are expected to level out at 4.9% by year-end, while rent growth is forecasted to climb to 2.6% annually. Developers have been building at record-breaking levels, especially in Sun Belt and Mountain region cities, where inventory has surged by nearly 20% in just three years. But that boom is cooling fast, with new construction starts projected to drop 74% below 2021 levels by mid-year. This pullback, paired with continued renter demand, is likely to drive higher occupancy and stronger rent growth into 2026.

For investors, the buy vs. rent gap remains a key factor. With mortgage payments averaging 35% more than rent, many would-be homebuyers are staying put in apartments, keeping rental demand strong. Markets like Austin, Los Angeles, Phoenix, and Nashville are set to see the biggest cost-to-buy premium reductions over the next five years, reinforcing multifamily as a top-tier investment opportunity.

You can read the full report here.

As 2025 kicks off, the hospitality industry is seeing some big shifts. From a surge in hotel investments to a growing demand for group travel and high-tech wellness, hotels that stay ahead of these trends will come out on top. Hotel Dive recently spoke with industry leaders about what to expect this year. Here’s a recap of what’s shaping the market.

1. Hotel Investment is Back
With interest rates cooling and lenders gaining confidence, investors are pouring money into hotels again. Urban markets like New York, Chicago, and Nashville are attracting attention thanks to a surge in corporate and group travel. Meanwhile, suburban extended-stay properties are also gaining traction, making them a hot spot for future growth.

2. Group Travel is Booming

Corporate meetings, entertainment events, and youth sports tourism are driving demand for hotels. More planners are locking in event spaces, and hotels that offer unique experiences, like private concerts and curated local activities, are winning repeat business. Even smaller markets like St. Louis and Memphis are becoming go-to destinations for business and leisure groups.

3. Wellness Goes High-Tech
Luxury hotels are rolling out cutting-edge wellness experiences, including IV therapy, biomarker testing, and AI-powered relaxation treatments. Longevity-focused travel is on the rise, but at the same time, guests still value simple wellness perks like blackout curtains, high-quality bedding, and quiet spaces for true rest.

4. Multigenerational Travel is Here to Stay

More families are traveling together, which means hotels need to cater to everyone, from grandparents to Gen Alpha kids. Properties that offer kid-friendly amenities and cultural experiences are pulling in higher-spending guests who book multiple rooms and extended stays.

5. Hotel Renovations Are at an All-Time High

Many hotels built in the early 2000s are due for major upgrades, and owners are focused on automation, energy efficiency, and modern guest experiences. However, supply chain issues and potential new tariffs could slow down renovation timelines.

I’m no life coach, but after ten years in business development, I can say there’s nothing quite like making cold calls fresh out of college to make you rethink your life and where you’re headed. At least, that’s how it felt at the time. 

Over the past six to eight months, I’ve had a huge shift in how I think about the world. For a while, I felt subject to the circumstances around me (i.e., my potential is limited because of XYZ circumstance). This was why I wasn’t seeing the growth that I wanted to in my life. 

I recently came to terms with the cold, hard truth which is that the problems I was experiencing were because of one person—me.

I was living in a constant state of fear in everything that I did. I was fearful of the future, fearful of not succeeding, fearful that something would be really hard, fearful that I couldn’t accomplish what I was setting out to do, and fearful that the success I did have would be taken away. 

Everything began to change when my thinking and decision-making shifted from fear to faith. The truth is, there’s always an abundance. No matter the circumstances I face, there is always a way through. Suddenly, I was no longer stuck.

A couple of weeks ago, I was helping coach a high schooler in wrestling. The biggest hold-up in my wrestling career was my mind, so I shared with him what I was learning about faith and how entering a match with this faith would free him to perform to the best of his abilities, but I wasn’t sure it would stick. He reported back that he hung on to this truth in his match, and it eliminated all fear and anxiety going into the competition. 

Faith empowers us in the face of adversity. It frees us from being subject to the people or circumstances around us. Better yet, I experience way more success in my relationships and career when I operate in faith rather than fear.

If you get me on the phone, I can talk about this all day, but I just wanted to share what I’m learning in case it helps anyone else. I’d love to hear if you’ve experienced the same thing. 

Jesse Etherington

(641) 257-9286