Author Archives: Jaiden Andus

Market Insights

22.4 Million Renters and Counting: Multifamily Renter Demand Hits a Record

Posted on by Jaiden Andus
Multifamily renter demand

Multifamily renter demand in the U.S. has quietly reached a historic milestone.

In 2025, the number of multifamily rental households climbed to 22.4 million, the highest level ever recorded, according to research from Chandan Economics and Arbor Realty Trust.

This isn’t a short-term spike or a post-pandemic anomaly. It’s the continuation of a multi-year structural shift that is reshaping the housing landscape—and creating long-term implications for investors focused on durable income and demand-backed assets.

A Growth Trend with Staying Power

Multifamily household formation has now grown at a steady 1.6%–1.8% annual rate for three consecutive years. From 2020 to 2025, the sector expanded by 15.4%, dramatically outpacing the 5.3% growth in total U.S. households over the same period.

 

22.4 Million Renters and Counting…

In absolute terms, the U.S. added nearly 3 million multifamily households over the past five years, the largest net gain since 2000.

For investors, the significance lies less in the headline number and more in the consistency. This level of growth suggests not a cyclical surge, but a durable rebalancing of where and how Americans choose, or are forced, to live.

Supply Has Risen—but So Has Absorption

Importantly, this demand growth has occurred alongside a historic wave of new supply. In 2024 alone, developers delivered 591,400 multifamily units, the highest annual total since 1974. Through August 2025, another 328,500 units came online, keeping completions elevated.

Rather than overwhelming the market, this supply surge has largely been absorbed.

Without it, household growth within multifamily would have been constrained, placing even greater pressure on rents and occupancy. Instead, new deliveries helped accommodate record demand while preventing excessive overheating in many markets.

This balance between supply and demand has been a key factor in the sector’s resilience.

Structural Demand Drivers Remain Intact

Several long-term forces continue to support multifamily growth.

The cost of homeownership has moved further out of reach, with mortgage payments, insurance, and taxes consuming approximately 43% of median household income, well above traditional affordability thresholds. At the same time, return-to-office policies have reinforced demand in employment-dense metros, particularly among renters seeking proximity and flexibility.

In certain Sun Belt markets, rising numbers of high-income renters are adding competitive pressure to the rental pool, further reinforcing demand even as new supply delivers.

Together, these forces suggest that multifamily demand is not solely a function of interest rates or short-term economic conditions, but a reflection of broader affordability and lifestyle realities.

What This Means For Investors in 2026

Despite record household counts and elevated deliveries, occupancy has remained relatively stable, and rent pressure has moderated rather than collapsed. This points to a market that is absorbing growth, not struggling under it.

As construction pipelines begin to normalize and demand drivers remain structurally intact, the multifamily sector is expected to enter 2026 on more balanced footing, characterized by steadier household growth, stabilized rents, and improved visibility for long-term investors.

For accredited investors, this matters because durable demand is the foundation of every successful multifamily strategy. Record household formation doesn’t guarantee outsized returns on its own, but it does create a strong base for disciplined operators, selective market exposure, and strategies focused on sustainability rather than speculation.

In a housing market defined by affordability constraints and evolving lifestyle preferences, multifamily’s growth story appears less cyclical and more structural, and increasingly difficult to ignore.

When You’re Ready… Here’s 3 Ways We Can Help:

  1. Connect With Our Team: Whether you’re exploring passive real estate for the first time or you’re a seasoned investor looking for a trusted partner, our team is available to answer your questions. Schedule a confidential strategy call to learn more about our investment philosophy, current opportunities, and how we help investors achieve income, growth, and tax efficiency. 
  2. Join Our Private Investor Portal: Gain exclusive access to our current offerings and ongoing pipeline of multifamily investments. Inside, you’ll find detailed financials, market insights, and structured deal overviews—all designed to help you make informed, confident decisions about where to place your capital.
  3. Review Our Investment Strategy: Get a clear understanding of how we source, underwrite, and manage multifamily assets. Our strategy is built around long-term wealth creation, consistent passive income, and disciplined risk management. Learn what sets us apart and why sophisticated investors choose to partner with us.
Uncategorized

Where Smart Capital Is Moving in 2026: The Case for Mid-Tier Multifamily Investing

Posted on by Jaiden Andus
Mid-tier multifamily investing

Mid-tier multifamily investing is gaining renewed attention as the multifamily market moves through the 2025–2026 cycle, with performance becoming increasingly uneven across asset classes. While much of the development and investment capital of the past decade flowed toward luxury product, the results are now diverging. Mid-tier multifamily, often overlooked in favor of newer, high-end assets, is emerging as a relative outperformer, supported by stronger supply discipline, resilient demand, and more balanced market fundamentals.

For sophisticated, accredited investors, this shift is less about chasing short-term momentum and more about understanding where durability, pricing power, and risk-adjusted returns are likely to reside in a more nuanced environment.

What the Recent Performance Data Is Beginning to Reveal

Recent operating data underscores this divergence. In Q4 2025, three-star multifamily assets posted rent growth of approximately 0.5%, exceeding the national average and standing in contrast to luxury assets, which recorded rent declines of roughly 0.2% over the same period. While the absolute numbers may appear modest, the relative performance is meaningful in a market where many segments are struggling to generate positive rent growth at all.

According to CoStar’s National Multifamily Director, Grant Montgomery, the primary driver behind this trend is restrained new supply. Mid-tier properties simply face less direct competition from newly delivered inventory, allowing owners to maintain occupancy and pricing power even as broader economic conditions normalize.

How Oversupply Is Reshaping the Luxury Multifamily Landscape

Luxury multifamily continues to face structural headwinds tied to development decisions made several years ago. Nearly 70% of units currently under construction fall into the luxury category, creating a historic supply glut across many major metros. This concentration of new inventory has placed persistent downward pressure on rents and extended lease-up timelines.

Developers’ prolonged focus on high-end product has delayed recovery at the top of the market, and many metros are still absorbing large volumes of recently delivered units. Montgomery expects this imbalance to persist through at least mid-2026, noting that a meaningful rebound in luxury rent growth will depend on both a slowdown in deliveries and a resurgence in demand within that segment.

For investors, this dynamic increases uncertainty around near-term income growth and underwriting assumptions for luxury-focused strategies.

Why Multifamily Outcomes Are Becoming Increasingly Market‑Specific

Another defining feature of the current cycle is the growing divergence between individual markets. Macro conditions, particularly a stable but cooling labor market, are producing increasingly localized outcomes rather than uniform national trends.

This environment places a premium on market selection, local fundamentals, and segment-specific exposure rather than broad geographic allocation.

Where Consistency Is Quietly Re‑Emerging

While much of the attention remains focused on high-growth Sun Belt markets, the Midwest and Northeast are quietly benefiting from more disciplined construction pipelines and steady demand. These regions delivered solid performance in 2025 and are expected to offer relatively stable returns in 2026.

By avoiding both the oversupply-driven volatility affecting luxury-heavy markets and the extreme swings often seen in high-growth regions, these geographies have provided a level of consistency that is increasingly valued by long-term investors. This stability builds on earlier rent growth trends from 2025 and continues to reinforce investor confidence in middle-market assets located in fundamentally sound metros.

What This Shift Means for Capital Allocation in 2026

For accredited investors evaluating multifamily allocations in 2026, mid-tier multifamily investing offers a compelling balance of durability, income stability, and risk-adjusted returns. These properties tend to serve a broader tenant base, face less direct competition from new construction, and offer operational upside without relying solely on aggressive rent growth assumptions.

As market dynamics become more regionalized and supply-driven risks remain elevated in certain segments, mid-tier multifamily represents a pragmatic approach to capital deployment, one that prioritizes sustainable income, downside protection, and long-term relevance over short-term momentum.

In a cycle defined less by broad market appreciation and more by execution and asset selection, middle-market multifamily stands out as a segment positioned to perform steadily as conditions continue to evolve through 2026 and beyond.

When You’re Ready… Here’s 3 Ways We Can Help:

  1. Connect With Our Team: Whether you’re exploring passive real estate for the first time or you’re a seasoned investor looking for a trusted partner, our team is available to answer your questions. Schedule a confidential strategy call to learn more about our investment philosophy, current opportunities, and how we help investors achieve income, growth, and tax efficiency. 
  2. Join Our Private Investor Portal: Gain exclusive access to our current offerings and ongoing pipeline of multifamily investments. Inside, you’ll find detailed financials, market insights, and structured deal overviews—all designed to help you make informed, confident decisions about where to place your capital.
  3. Review Our Investment Strategy: Get a clear understanding of how we source, underwrite, and manage multifamily assets. Our strategy is built around long-term wealth creation, consistent passive income, and disciplined risk management. Learn what sets us apart and why sophisticated investors choose to partner with us.
Market Insights

Why Rising Incomes May Be the Most Underrated Tailwind for Multifamily Investors

Posted on by Jaiden Andus
Rising Incomes Multifamily Investors

Rising Incomes Multifamily Investors Shouldn’t Ignore

For much of the post-pandemic period, rent growth outpaced income growth, putting pressure on renters and introducing new risks for multifamily operators. Today, that dynamic is beginning to shift—and it may be an under-appreciated positive for long-term investors.

According to Zillow, nationwide rent growth slowed to 2.3% year-over-year in October, while median household incomes are estimated to have risen roughly 4%. GlobeSt notes this marks a reversal from the pandemic-era trend, when rents consistently climbed faster than wages and strained household budgets.

Affordability Is Stabilizing—Not Resetting

Despite the slowdown, affordability hasn’t returned to pre-COVID levels. The typical U.S. rent now stands at $1,949, up 35.6% from before the pandemic—well above the 26% rise in overall inflation. As a result, renters now spend about 27.2% of median income on rent, compared to 26.3% pre-pandemic.

Still, the direction matters. Incomes are finally catching up, helping stabilize renter balance sheets after years of compression.

Markets Where Renters Are Gaining Ground

Affordability improvements are most evident in markets where rents are declining. Austin, Denver, San Antonio, and Phoenix have all posted year-over-year rent decreases between 0.7% and 3.1%, while incomes continue to rise. Even in higher-cost markets like San Jose, stronger wage growth is helping renters keep pace despite ongoing rent increases.

These conditions are creating a more sustainable operating environment for well-located multifamily assets.

Where Pressure Remains

In 12 of the 50 largest U.S. metros, rents are still growing faster than incomes. This includes high-cost coastal markets such as New York and San Francisco, as well as Midwest cities like Chicago, Cleveland, and Milwaukee. In these areas, affordability remains strained—underscoring the importance of market and submarket selection.

Why This Shift Matters to Investors

Improving affordability doesn’t just benefit renters—it strengthens asset performance. When residents have more income left after paying rent, investors often see:

  • Lower delinquency and bad debt
  • Reduced turnover
  • More predictable cash flow
  • Greater operating stability

In many cases, modest rent growth paired with rising incomes produces better risk-adjusted returns than aggressive rent increases that stress tenants.

Looking Ahead

With additional multifamily supply delivering in many markets, rent growth may remain muted in the near term. While affordability challenges will persist in high-cost and slow-growth metros, the narrowing gap between rents and incomes suggests the sector is entering a more balanced phase.

For long-term multifamily investors, this quieter shift toward stability may prove to be one of the most important tailwinds of the next cycle.

When You’re Ready… Here’s 3 Ways We Can Help:

  1. Connect With Our Team: Whether you’re exploring passive real estate for the first time or you’re a seasoned investor looking for a trusted partner, our team is available to answer your questions. Schedule a confidential strategy call to learn more about our investment philosophy, current opportunities, and how we help investors achieve income, growth, and tax efficiency. 
  2. Join Our Private Investor Portal: Gain exclusive access to our current offerings and ongoing pipeline of multifamily investments. Inside, you’ll find detailed financials, market insights, and structured deal overviews—all designed to help you make informed, confident decisions about where to place your capital.
  3. Review Our Investment Strategy: Get a clear understanding of how we source, underwrite, and manage multifamily assets. Our strategy is built around long-term wealth creation, consistent passive income, and disciplined risk management. Learn what sets us apart and why sophisticated investors choose to partner with us.
Multifamily Market Outlook

Multifamily Market Outlook 2026: Where Opportunity Emerges as the Cycle Stabilizes

Posted on by Jaiden Andus
Multifamily Market Outlook 2026

Multifamily Market Outlook 2026: A New Set of Opportunities Emerges

As 2025 comes to a close, the U.S. multifamily market is transitioning from a period of disruption to one of stabilization. After several years marked by inflation, rising interest rates, and an unprecedented wave of new supply, the sector is beginning to find firmer footing. While the past year did not deliver outsized growth, it clarified where risk now lies—and where opportunity is emerging.

Looking ahead to 2026, returns will be driven less by broad market momentum and more by disciplined execution, local market selection, and alignment with experienced operating partners.

2025 Recap: Stability Returns as Supply Peaks

Operating Fundamentals Remained Intact

National rent growth in 2025 averaged approximately 2%–3%, modest by historical standards but notable given the scale of new supply delivered. Vacancy rates remained elevated, reaching roughly 7% nationally late in the year, driven largely by the tail end of a construction cycle that added hundreds of thousands of units—particularly in the Sun Belt and Mountain West.

Importantly, renter demand held steady. Employment growth, demographic tailwinds from Gen Z and Millennials, and continued barriers to homeownership supported absorption throughout the year.

Development Slowed Meaningfully

While deliveries remained high, new construction starts and permits declined sharply. Higher borrowing costs, elevated construction expenses, and more conservative rent assumptions made fewer projects feasible. As a result, the active development pipeline has contracted significantly—setting up a more balanced supply environment over the next several years.

Capital Markets Began to Reopen

Multifamily transaction activity rebounded in 2025, with annual sales volumes projected in the $370–$380 billion range. Cap rates stabilized, price discovery improved, and agency lenders continued to provide liquidity as banks and CMBS lenders remained selective.

Private capital—family offices, high-net-worth investors, and experienced operators—accounted for a large share of acquisitions, while many institutional investors remained cautious.

2026 Outlook: Gradual Improvement, Not a Surge

Most forecasts point to 2026 as a year of incremental recovery rather than rapid expansion.

New apartment deliveries are expected to decline sharply from recent peaks, easing competitive pressures in many markets. Vacancy is projected to trend modestly lower, while rent growth becomes more consistent across regions and asset types. Markets with heavy recent construction may still take time to fully absorb supply, but overall conditions are improving.

On the financing side, liquidity should increase gradually. Higher agency lending caps and the potential for lower interest rates later in the cycle may support refinancing activity and transaction volume, though underwriting discipline is likely to remain firm.

Why Market Selection and Execution Matter More Now

In a slower-growth environment, outcomes are increasingly determined at the asset and submarket level.

Markets with Future Growth, Not Past Momentum

The most attractive opportunities are in markets where population, employment, and business growth are forming—but where housing supply is no longer accelerating. These are often secondary or tertiary markets, or specific submarkets within larger metros, where long-term fundamentals remain favorable and new construction is moderating.

Existing Assets with Operational Upside

As development slows, existing multifamily properties—particularly those that underperformed during the recent supply surge—offer potential for improvement through better management, targeted capital investment, and normalized leasing conditions. Returns are more likely to come from execution and cash flow growth than from multiple expansion.

The Importance of the Right Partners

With narrower margins and greater dispersion in performance, experience matters. Local market knowledge, conservative underwriting, and alignment of interests are increasingly important as investors navigate this phase of the cycle.

Looking Ahead

The multifamily sector is moving from a supply-driven pause toward a more balanced environment. Demographic demand remains durable, development pipelines are shrinking, and capital markets are stabilizing.

While challenges remain, the outlook for 2026 is cautiously constructive. Investors who focus on well-located assets, markets with long-term growth drivers, and experienced operating partners are likely to be best positioned as the cycle continues to normalize.

When You’re Ready… Here’s 3 Ways We Can Help:

  1. Connect With Our Team: Whether you’re exploring passive real estate for the first time or you’re a seasoned investor looking for a trusted partner, our team is available to answer your questions. Schedule a confidential strategy call to learn more about our investment philosophy, current opportunities, and how we help investors achieve income, growth, and tax efficiency. 
  2. Join Our Private Investor Portal: Gain exclusive access to our current offerings and ongoing pipeline of multifamily investments. Inside, you’ll find detailed financials, market insights, and structured deal overviews—all designed to help you make informed, confident decisions about where to place your capital.
  3. Review Our Investment Strategy: Get a clear understanding of how we source, underwrite, and manage multifamily assets. Our strategy is built around long-term wealth creation, consistent passive income, and disciplined risk management. Learn what sets us apart and why sophisticated investors choose to partner with us.
Real Estate Investing

As Homebuyers Hesitate, Multifamily Investors Win

Posted on by Jaiden Andus
Multifamily investors

Builder sentiment in the single-family home market showed only a modest improvement in November, signaling a market that remains fragile. The NAHB/Wells Fargo Housing Market Index (HMI) edged up by a single point to 38, reflecting cautious optimism as affordability challenges persist despite slightly lower mortgage rates.

Economic uncertainty continues to weigh heavily on potential buyers. Recent macroeconomic factors—including a historically long government shutdown, persistent inflation concerns, and a softer labor market—are keeping many prospective homeowners on the sidelines. According to NAHB Chairman Buddy Hughes, “Buyers are still hesitant despite lower mortgage rates. Builders are leaning more on incentives, like price cuts, to close deals—but many shoppers remain cautious.”

Price adjustments and incentives have become increasingly common. In November, 41% of builders reported reducing prices—the highest share since the post-COVID period began—with average reductions around 6%. Overall, 65% of builders offered some form of sales incentive to encourage buyers. While such strategies provide short-term momentum, they underscore the ongoing challenges on the demand side.

Breaking down the HMI components:

  • Current sales conditions rose slightly to 41
  • Future sales expectations fell to 51
  • Prospective buyer traffic inched up to 26

All three metrics remain at or just above neutral, with buyer traffic continuing to lag. Regional differences suggest a slightly more optimistic outlook in the Northeast and South, whereas the Midwest and West are seeing weaker activity.

Implications for Multifamily Investors

The hesitation among single-family home buyers has a direct ripple effect on the multifamily rental market. When buyers delay home purchases due to affordability pressures or economic uncertainty, they often remain renters longer. This extended renting cycle can benefit multifamily investors in several ways:

  1. Sustained Rental Demand – With fewer first-time buyers entering the market, occupancy rates in multifamily properties are likely to remain stable or even increase in some markets. This is particularly true in regions where housing affordability is most constrained, as renters have limited alternatives.
  2. Potential for Rent Growth – Stronger demand allows landlords to maintain or modestly increase rents, especially in well-located, quality properties. Even as single-family homes offer price cuts and incentives, many prospective buyers may still find renting more feasible in the short term.
  3. Reduced Volatility Compared to Single-Family Markets – While single-family construction slows in response to weak buyer traffic, multifamily developments tend to be less sensitive to short-term fluctuations. Investors in stabilized multifamily assets may therefore experience more predictable cash flow during periods of single-family market uncertainty.
  4. Opportunities in Select Markets – Regional variations in buyer activity can influence where multifamily demand is strongest. For example, areas in the Northeast and South where buyer confidence is slightly higher may see slower rental demand growth, whereas the Midwest and West could benefit from stronger renter retention as prospective buyers remain on the sidelines.
  5. Long-Term Tailwinds – Even as mortgage rates decrease and the single-family market eventually recovers, multifamily investors may continue to see benefits from structural housing affordability challenges. Rising home prices, stricter lending standards, and ongoing economic uncertainty all contribute to a pool of renters that supports multifamily occupancy and income stability.

In short, hesitation in the single-family market reinforces the role of multifamily housing as a reliable investment for multifamily investors. While economic uncertainty and inflationary pressures impact all real estate sectors, multifamily properties positioned in markets with strong rental demand and limited supply are well-positioned to benefit from sustained renter activity in the near term.

When You’re Ready… Here’s 3 Ways We Can Help:

  1. Connect With Our Team: Whether you’re exploring passive real estate for the first time or you’re a seasoned investor looking for a trusted partner, our team is available to answer your questions. Schedule a confidential strategy call to learn more about our investment philosophy, current opportunities, and how we help investors achieve income, growth, and tax efficiency. 
  2. Join Our Private Investor Portal: Gain exclusive access to our current offerings and ongoing pipeline of multifamily investments. Inside, you’ll find detailed financials, market insights, and structured deal overviews—all designed to help you make informed, confident decisions about where to place your capital.
  3. Review Our Investment Strategy: Get a clear understanding of how we source, underwrite, and manage multifamily assets. Our strategy is built around long-term wealth creation, consistent passive income, and disciplined risk management. Learn what sets us apart and why sophisticated investors choose to partner with us.
Market Insights

Commercial Real Estate: The Quiet Momentum Driving CRE Deals in 2026

Posted on by Jaiden Andus
Commercial real estate

For nearly two years, commercial real estate has lived in a fog of uncertainty. Elevated rates, inflation pressure, and valuation resets kept many investors watching from the sidelines. But as we close out 2025, the data is no longer ambiguous: the CRE market has regained its footing, and the setup for 2026 is the strongest we’ve seen since before the pandemic.

Below is what today’s numbers really say and what it means for accredited investors focused on multifamily.

The Capital Markets Are Waking Up

Three forces: lower rates, improving fundamentals, and surging refinancing activity are reshaping the landscape:

  • Loan originations jumped 48% YoY through Q3 to $587B, up from $395B in 2024.
  • Refis now make up 55% of all originations, unlocking transaction flow that had been frozen since 2022.
  • Bank lending is up 85%, CMBS issuance is up 37%, and insurance/agency lenders have expanded 29% and 41%.

This isn’t theoretical optimism, this is capital deployment at scale. When lenders return, transactions follow. And that’s exactly what we’re seeing.

Sales Activity Is Rebounding…Quietly but Powerfully

Investment sales climbed 19% YoY through Q3 to $350B, with two-thirds of transactions under $100M prime territory for sophisticated private investors.

Meanwhile:

  • 70% of properties sold in September traded above their prior purchase price, with an average gain of $10.2M.
  • Assets bought for $60–75M in 2018–2019 are now exiting at $90–100M.

While media headlines focus on distress, the transactional reality tells a very different story: appreciation is happening right now.

Multifamily Remains Best-in-Class

Despite pricing tightness and pockets of oversupply, multifamily still leads all property types with $42B in Q3 volume (up 10% YoY).

Why? Because the fundamentals—household formation, rent demand, affordability gaps, and migration patterns—remain structurally strong. Even in uncertain macro conditions, people still need housing.

Meanwhile:

  • Office and retail, the sectors many wrote off, are actually leading the rebound with sales up 25–29%.
  • Institutional buyers are reentering office in major markets, rising from 9% of acquisition volume in 2023 to nearly 40% in 2025.

The recovery is broader and more durable than expected.

A Recovery Rooted in Operations, Not Hype

Unlike past cycles driven by cap-rate compression or cheap debt, this one is powered by operational performance:

  • Renewed leasing momentum.
  • Stronger rent collections.
  • Stabilizing occupancy.
  • Better reporting and asset-level discipline.
  • Technology and AI reshaping underwriting, asset management, and deal sourcing.

In many ways, 2026 is poised to reward execution, not speculation.

What’s Fueling 2026 Momentum

1. Rates Are Declining And Confidence Is Rising

Two consecutive Fed cuts (down to 3.75–4%) haven’t transformed the market overnight, but they have created psychological momentum. Every 25–50 bps of relief improves refinancing math, cap stacks, and buyer confidence.

2. Debt Maturities Are Creating Forced Opportunities

The 2025–2027 maturity wave is massive. Many owners who held through high-rate environments will be forced to refi or sell, creating targeted opportunities for well-capitalized sponsors.

3. The Pricing Reset Already Happened

Most of the value correction occurred in 2023–2024. Investors waiting for “the bottom” may have already missed it. As CBRE forecasts 16–17% transaction growth by year-end, with double-digit gains throughout 2026, the early-mover advantage is fading.

4. Technology Is Separating Winners From Everyone Else

Big data, AI-enhanced underwriting, and integrated platforms are no longer competitive edges, they’re necessities. The groups deploying technology effectively are securing deals others never see.

What This Means for Accredited Investors

For accredited investors, the current environment offers a rare opening. Multifamily remains one of the most resilient asset classes, supported by strong demand, steady rent fundamentals, and long-term demographic tailwinds. Even with elevated rates, housing continues to outperform most sectors.

At the same time, the rebound in capital markets means more attractive deals are emerging, especially in the sub-$100M range where private investors have a clear advantage. Many of these opportunities are off-market or relationship-driven, favoring investors aligned with experienced, well-capitalized operators.

Success in this phase of the cycle will come from preparation and execution. Investors who partner with sponsors that have strong lender relationships, disciplined asset management, and access to early-stage deal flow will be positioned to capture outsized returns as the market continues to thaw.

The Bottom Line

Commercial real estate isn’t waiting for a comeback, it’s already shifting. Transaction activity is rising, confidence is returning, and multifamily fundamentals remain solid as we move toward 2026.

This moment offers meaningful asymmetry: uncertainty keeps some buyers on the sidelines, yet the underlying fundamentals support future upside. That gap won’t last forever. As more capital re-enters the market, competition and pricing will tighten.

For accredited investors, the next 12–18 months may be one of the most favorable windows of the cycle. Those who position capital now, before the recovery becomes obvious, will be best positioned to benefit from the momentum already forming beneath the surface.

When You’re Ready… Here’s 3 Ways We Can Help:

  1. Connect With Our Team: Whether you’re exploring passive real estate for the first time or you’re a seasoned investor looking for a trusted partner, our team is available to answer your questions. Schedule a confidential strategy call to learn more about our investment philosophy, current opportunities, and how we help investors achieve income, growth, and tax efficiency. 
  2. Join Our Private Investor Portal: Gain exclusive access to our current offerings and ongoing pipeline of multifamily investments. Inside, you’ll find detailed financials, market insights, and structured deal overviews—all designed to help you make informed, confident decisions about where to place your capital.
  3. Review Our Investment Strategy: Get a clear understanding of how we source, underwrite, and manage multifamily assets. Our strategy is built around long-term wealth creation, consistent passive income, and disciplined risk management. Learn what sets us apart and why sophisticated investors choose to partner with us.
Market Insights

Fannie Mae Multifamily Inspections: Why Oversight Is Increasing Nationwide

Posted on by Jaiden Andus
Fannie Mae multifamily inspections

GSE inspections are ramping up nationwide and the reason may go deeper than most think.

If you own or asset-manage multifamily properties financed through Fannie Mae, you may have noticed something unusual lately, unannounced inspections and even requests for new Property Condition Assessments (PCAs).

You’re not imagining it. This trend is spreading across portfolios nationwide, and it’s catching many operators off guard. The question is why now?

A Quick Refresher: What Is a GSE?

Fannie Mae (along with Freddie Mac) is a Government-Sponsored Enterprise (GSE) a federally chartered organization created to stabilize and support the U.S. housing market.

Rather than lending directly, GSEs buy and securitize loans from lenders, guaranteeing those mortgage-backed securities (MBS). That guarantee comes with strings attached strict standards, ongoing oversight, and compliance with the Multifamily Selling & Servicing Guide.

Why the Surprise Inspections and PCA Demands?

Over the past year, Fannie Mae has tightened its operational oversight. Several factors are driving the increased activity:

1. A Tougher Market and Rising Credit Risk

With interest rates at multi-decade highs, rent growth slowing, and delinquencies inching upward, Fannie Mae is taking a harder look at collateral quality. These inspections identify deferred maintenance or early signs of distress before losses occur.

2. Recent Guide Updates and Stricter Enforcement

Fannie Mae’s updated PCA guidance now classifies more items as “immediate repairs” from obsolete electrical systems to life-safety deficiencies. The message: compliance delays are no longer acceptable.

3. Deferred Maintenance in Older Assets

Many Class B and C communities are showing age. Deferred CapEx that built up post-COVID has become impossible to ignore. Fannie Mae isn’t waiting for defaults to uncover problems it’s proactively visiting assets.

4. Servicers Under Pressure

Servicers, acting on Fannie Mae’s behalf, are required to perform more on-site verifications for watch-list or at-risk loans. The result: more frequent inspections, shorter notice windows, and higher scrutiny.

A Personal Theory: The 2021–2022 Wave of New Operators

Here’s the part few are talking about and it may explain the sudden surge in oversight.

Between 2021 and 2022, multifamily experienced one of the largest influxes of new syndicators and operators in its history. Capital was abundant, rates were low, and value-add plays looked like a sure bet.

According to Newmark, multifamily investment volume hit $353 billion in 2021 and $294 billion in 2022, roughly 75 percent above pre-pandemic norms. That velocity invited first-time sponsors to chase Class B and C deals in fast-growing Sunbelt markets.

Meanwhile, crowdfunding and syndication platforms like CrowdStreet expanded rapidly, reporting billions in equity raised by late 2022. Smaller, newer operators suddenly had access to capital they’d never had before.

Then the cycle turned. Rates doubled. Insurance, payroll, and taxes skyrocketed. Rent growth flattened.

Many of those operators who built underwriting models on aggressive rent premiums and short value-add timelines had to divert CapEx to operations just to keep the lights on. Renovations stalled. Capital reserves evaporated. Assets slid into partial completion limbo.

It’s entirely plausible that Fannie Mae and other GSEs noticed. Their loans were underwritten on the assumption of completed upgrades and adequate reserves. When those improvements didn’t materialize, the physical condition of the collateral inevitably declined.

So while these “unannounced” inspections might feel abrupt, they’re likely a data-driven response to that 2021–2022 operator cohort an industry class that entered at the top of the market cycle and never fully executed its business plans.

Why It Feels Unannounced

Technically, Fannie Mae’s guide requires advance notice before inspections. But in practice, servicers facing higher risk scores are shortening lead times or conducting on-site visits with minimal notice.

To property teams, that feels like a surprise. To the GSE, it’s “enhanced surveillance.”

How Owners and Asset Managers Can Stay Ahead

  1. Review Your Loan Documents. Confirm inspection and PCA rights, some loan riders allow more aggressive timelines.
  2. Document Every Visit. Record date, attendees, and scope to maintain transparency.
  3. Audit Your Own Properties. Catch deferred items before the lender’s report does.
  4. Engage Your Servicer Proactively. Ask if your asset is under broader review or watch-list criteria.
  5. Revisit Reserves and Forecasts. Reclassify “deferred” into “immediate” where necessary and plan funding now.

The Bigger Picture

This isn’t about micromanagement, it’s about risk management. Fannie Mae’s actions reflect the reality of 2025’s market: tightening liquidity, aging assets, and the natural correction following a historic capital surge.

And perhaps, it’s also a marker of a maturing industry. When CapEx gets repurposed for survival, properties age faster and the agencies are watching.

Final Thought

This trend isn’t isolated to one region or asset class it’s a nationwide tightening of standards across GSE-backed multifamily loans.

Whether you manage 200 units or 2,000, now is the time to ensure your documentation, reporting, and property condition are bullet-proof.

Because when the GSE knocks, even unannounced, it’s too late to start cleaning up.

Meaghan Davenport President of Operations, Axxis Capital Helping owners and operators think bigger about performance, compliance, and accountability.

About the Author: Meaghan Davenport is a seasoned asset management executive and multifamily syndicator with a proven track record in operational turnarounds, value creation, and team leadership. Her work focuses on elevating industry standards through transparency, data-driven oversight, and collaboration between ownership, management, and investors.

Sources: Fannie Mae Multifamily Selling & Servicing Guide (2025); Newmark Multifamily Capital Markets Report (2022); CrowdStreet Annual Report (2022); CBRE U.S. Market Outlook (2022).

Real Estate Investing

Suburban Multifamily Investing: A Quiet Outperformer Amid Market Uncertainty

Posted on by Jaiden Andus
Suburban multifamily investing

While many are still focused on the turmoil in urban cores, savvy multifamily investors are quietly redirecting capital to suburban multifamily investing markets, where stability, strong demand, and structural growth are quietly reshaping opportunities. Amid this turbulence, one segment is quietly standing out: suburban multifamily. Recent insights from Cushman & Wakefield highlight that secondary and tertiary suburban markets are demonstrating stability in occupancy and sustained renter demand, trends that demand our attention as we consider the next deployment of capital.

Rethinking Market Allocation

Urban cores are grappling with oversupply, stagnant rent growth, and heightened competition. Suburban markets, by contrast, largely avoided the construction surge seen in major metros. Many secondary markets have not experienced the same supply shock, which has preserved pricing power and limited downside risk. For investors seeking stability, these markets are signaling an opportunity to allocate capital where fundamentals remain solid.

Affordability as a Structural Driver

Affordability continues to be a defining factor in suburban outperformance. Middle-market and workforce housing in these locations is attracting renters priced out of high-cost urban centers. Federal HUD initiatives targeting middle-income households are further supporting developers in meeting this demand. The implication is, suburban assets are not just a short-term refuge, they are positioned to capture structural demographic shifts and ongoing renter preferences.

Investment Fundamentals Are Compelling

Cap rate spreads have widened across the broader market, yet suburban Class A and B assets show relatively narrow pricing gaps. Even Class B- and C properties maintain consistent demand, supported by limited new supply. These dynamics reduce exposure to oversupply risk and create a buffer against market volatility, key considerations for investors balancing risk and yield. Cushman & Wakefield forecasts a gradual valuation recovery starting in Q4 2025, with institutional capital increasingly drawn to suburban markets supported by job growth, infrastructure development, and amenity expansion.

How Can You Position Yourself For Success?

  1. Seek Markets with Structural Demand – Focus on suburban markets with growing populations, strong job markets, and limited new supply. These factors support sustainable occupancy and rental growth.
  2. Target Middle-Market and Workforce Housing – Affordability is driving demand. Properties serving these renter segments often demonstrate resilient cash flows and lower turnover risk.
  3. Consider Mixed-Use Suburban Assets – Developments combining residential, retail, and commercial spaces enhance both tenant appeal and long-term property value appreciation.
  4. Anticipate Institutional Interest – As developers scale back and capital becomes selective, suburban assets are increasingly attractive to long-term investors seeking defensive positions in multifamily portfolios.

When You’re Ready… Here’s 3 Ways We Can Help:

  1. Connect With Our Team: Whether you’re exploring passive real estate for the first time or you’re a seasoned investor looking for a trusted partner, our team is available to answer your questions. Schedule a confidential strategy call to learn more about our investment philosophy, current opportunities, and how we help investors achieve income, growth, and tax efficiency. 
  2. Join Our Private Investor Portal: Gain exclusive access to our current offerings and ongoing pipeline of multifamily investments. Inside, you’ll find detailed financials, market insights, and structured deal overviews—all designed to help you make informed, confident decisions about where to place your capital.
  3. Review Our Investment Strategy: Get a clear understanding of how we source, underwrite, and manage multifamily assets. Our strategy is built around long-term wealth creation, consistent passive income, and disciplined risk management. Learn what sets us apart and why sophisticated investors choose to partner with us.
Market Insights

Policy Momentum Meets Market Opportunity: What the ROAD to Housing Act Means for Multifamily Investors

Posted on by Jaiden Andus
ROAD to Housing Act

As multifamily investors, we’re constantly navigating cycles of supply, demand, regulation, and financing. Last week, a meaningful policy development emerged that deserves attention, and perhaps, a strategic response.

On October 9, the U.S. Senate passed the ROAD to Housing Act, a bipartisan bill aimed squarely at increasing the nation’s housing supply and tackling affordability through regulatory reform.

While the bill still needs House approval, its implications for our space are already clear: the federal government is finally prioritizing supply-side solutions, and that shift could shape multifamily investment strategies over the next several years.

A Push Toward More Build-Friendly Policy

At its core, the ROAD to Housing Act aims to remove friction from the development process. It directs HUD to work with builders and local governments to establish best practices for zoning and land use reform, rewards municipalities that adopt pro-housing policies, and encourages the streamlining of environmental review and permitting at local levels.

In practical terms, this could:

  • Accelerate project timelines in growth markets where cities align with federal incentives.
  • Moderate construction costs over time by reducing regulatory burdens (which currently account for roughly 25% of a new home’s cost, per NAHB).
  • Unlock underutilized land through zoning reform, especially in suburban and infill areas that are ideal for workforce and attainable housing developments.

For investors, this means potential expansion of viable development pipelines in secondary and tertiary markets that were previously slowed by local resistance or zoning complexity.

Implications for Existing Owners

While more supply might sound like a headwind, it can actually create long-term stability in a market that’s been plagued by volatility in both rent growth and affordability pressure. By increasing overall housing availability, the legislation could:

By addressing affordability through increased housing construction rather than rent control, the legislation could help ease political and regulatory pressure on landlords. Over time, this approach may promote healthier rent growth patterns, smoothing out the extreme peaks and troughs experienced in recent years and creating more sustainable, predictable performance for multifamily assets. Additionally, as local markets adopt clearer, standardized policy frameworks, investor confidence and liquidity are likely to improve, supporting overall valuation stability across the sector.

In short, while the ROAD to Housing Act won’t flood the market with new units overnight, it could de-risk multifamily ownership over the long term by creating a more balanced policy environment.

Strategic Takeaways for Investors

While the bill’s passage through the Senate doesn’t immediately move markets, it does provide valuable insight into where housing policy, and therefore capital, may be heading. Here are several implications worth watching:

  1. Markets that embrace pro-housing reforms could see faster permitting and growth. Investors might want to monitor cities and counties that quickly align with HUD’s forthcoming best-practices framework. These jurisdictions may become development-friendly zones for new multifamily supply.
  2. Construction cost inflation could moderate over time, improving new-build feasibility, especially for value-add developers looking to pivot into light construction or redevelopment plays.
  3. Existing stabilized assets in tight supply markets may hold premium value over the next 12–24 months as the new policy framework takes time to translate into actual units.
  4. Policy predictability is returning, and with it, the confidence needed for institutional capital to re-enter select development markets.

Looking Ahead

The bill still faces political delays in the House, but the bipartisan momentum behind housing reform appears strong. When housing supply becomes a national priority, it tends to reshape investment risk across the board, from entitlement timelines to financing conditions.

For now, multifamily investors should view this as a signal of longer-term structural support for the industry. The ROAD to Housing Act won’t reverse today’s high construction costs or capital market challenges overnight, but it reinforces one of the most investable themes of the next cycle: policy-driven expansion of housing supply and the opportunities it creates for well-capitalized investors positioned to move early.

When You’re Ready… Here’s 3 Ways We Can Help:

  1. Connect With Our Team: Whether you’re exploring passive real estate for the first time or you’re a seasoned investor looking for a trusted partner, our team is available to answer your questions. Schedule a confidential strategy call to learn more about our investment philosophy, current opportunities, and how we help investors achieve income, growth, and tax efficiency. 
  2. Join Our Private Investor Portal: Gain exclusive access to our current offerings and ongoing pipeline of multifamily investments. Inside, you’ll find detailed financials, market insights, and structured deal overviews—all designed to help you make informed, confident decisions about where to place your capital. 
  3. Review Our Investment Strategy: Get a clear understanding of how we source, underwrite, and manage multifamily assets. Our strategy is built around long-term wealth creation, consistent passive income, and disciplined risk management. Learn what sets us apart and why sophisticated investors choose to partner with us.
Real Estate Investing, Market Insights

Housing Constraints Are Driving Multifamily Demand

Posted on by Jaiden Andus
Housing Constraints Are Driving Multifamily Demand

For investors seeking stable cash flow and long-term value creation, multifamily real estate continues to stand out as one of the most resilient and strategically positioned asset classes. Against the backdrop of affordability challenges in the single-family market and an ongoing national housing shortage, multifamily properties are playing an increasingly critical role in meeting U.S. housing demand.

Single-Family Challenges Drive Multifamily Growth

Homeownership remains aspirational, but affordability continues to be the central barrier. While mortgage rates have recently eased to 6.58% on a 30-year fixed loan, elevated borrowing costs have kept many middle-income households on the sidelines. 

The result: single-family home sales declined 2.7% in June, according to the National Association of Realtors, even as inventories reached 20-year highs, while the median new home price fell 6.2%, reflecting ongoing softness in the market.

For those allocating capital: when purchasing a home is out of reach, households rent instead. Multifamily real estate stands ready to absorb this demand and provide dependable returns.

This highlights how multifamily demand is becoming a central driver of investment performance in today’s housing market.

Growing Demand Supports Multifamily Performance

The multifamily sector has responded with strength. In Q2 2025, net absorption rose 47% year-over-year, marking the highest second-quarter performance in over three decades. Vacancy declined to 4.1%, well below long-term averages, despite elevated levels of new construction. Effective rents are rising again, with June registering the fastest annual increase since mid-2023.

These dynamics reflect both cyclical and structural tailwinds. Cyclically, multifamily benefits as single-family affordability declines. Structurally, the U.S. remains short an estimated 2 million homes, with unmet demand concentrated in growth markets across the Sun Belt, Southwest, and Midwest.

Navigating Today’s Market Environment

While demand is strong, today’s investment environment requires selectivity. Elevated construction pipelines in certain metros are likely to put short-term pressure on vacancy rates and temper rent growth. Forecasts for 2025 call for national rent growth of 2.2%, slightly below the historical average, as supply continues to be absorbed.

On the capital markets side, transaction volume is expected to rebound moderately in 2025, reaching $370–$380 billion. This is being driven by loan maturities requiring refinancing, sidelined capital reentering the market, and increasing price stability. For investors, this creates a window to acquire quality assets in strong locations at more attractive entry points than were available just two years ago.

Strategic Takeaways

  1. Prioritize Fundamentals Over Headlines: Focus on metros with strong job growth, diversified economies, and limited new supply. These markets are best positioned to deliver durable returns.
  2. Be Selective on Timing: Elevated supply is a short-term factor. Investors with a medium- to long-term horizon stand to benefit as new construction moderates in 2026 and beyond.
  3. Evaluate Risk-Adjusted Returns: With spreads narrowing, look closely at sponsor experience, leverage levels, and deal structures. In this environment, execution matters more than ever.

For high-net-worth investors balancing wealth preservation with growth, multifamily real estate continues to present a compelling opportunity. The sector’s resilience amid economic uncertainty, coupled with structural housing shortages and demographic demand, positions it as a core component of a diversified investment strategy.

As affordability challenges persist in the single-family sector, multifamily is not just filling the gap—it is shaping the future of U.S. housing. For investors, that means a chance to position capital where long-term demand is both clear and durable.

When You’re Ready… Here’s 3 Ways We Can Help:

  1. Connect With Our Team: Whether you’re exploring passive real estate for the first time or you’re a seasoned investor looking for a trusted partner, our team is available to answer your questions. Schedule a confidential strategy call to learn more about our investment philosophy, current opportunities, and how we help investors achieve income, growth, and tax efficiency.
  2. Join Our Private Investor Portal: Gain exclusive access to our current offerings and ongoing pipeline of multifamily investments. Inside, you’ll find detailed financials, market insights, and structured deal overviews—all designed to help you make informed, confident decisions about where to place your capital.
  3. Review Our Investment Strategy: Get a clear understanding of how we source, underwrite, and manage multifamily assets. Our strategy is built around long-term wealth creation, consistent passive income, and disciplined risk management. Learn what sets us apart and why sophisticated investors choose to partner with us.