Cedar Valley Multifamily Market Update: Strong Start to 2025

Multifamily sales in the Cedar Valley are off to a strong start this year, with an average sale price of $73,450 per unit—a notable increase from $65,276 per unit in the previous quarter. The continued lack of inventory and anticipation of more real estate-friendly tax policies appear to be driving both pricing and investor interest.

Rental Rates Hold Steady

Despite the jump in sales prices, rental rates have remained stable across the region:

• 1-bedrooms: $1,023/month

• 2-bedrooms: $1,234/month

• 3-bedrooms: $1,400/month

• 4-bedrooms: $1,422/month

These steady rents provide some predictability for investors even as acquisition costs rise.

City of Waterloo Updates: Proactive Inspections Begin

The City of Waterloo has recently hired a new rental inspector and has begun proactive inspections, starting in Ward 3. Feedback so far indicates these inspections are thorough, with very few properties passing on the first visit. Landlords should prepare for more active oversight and ensure their units are compliant with current codes.

New Healthy Homes Grant Program

Waterloo’s Lead-Based Paint Grant Program has been replaced by a broader Healthy Homes Program. While the dollar amounts available may be lower, the new program aims to cover a wider range of improvements beyond just lead remediation. For landlords and property owners, it’s worth reaching out to Community Development to see what resources might be available.

Looking Ahead

We’re gearing up for another busy summer of multifamily acquisitions across the Cedar Valley. If you’re curious about what’s happening on a micro-market level or want to position yourself for new opportunities, feel free to reach out directly. With commercial debt adjustments on the horizon, it will be interesting to watch where investors pivot next.