Tag Archives: Multifamily investors

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

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.