Lessors of Residential Buildings NAICS 531110

Jan 17, 2026 - Multifamily Sales to Improve in 2026

• Multifamily sales are expected to accelerate in 2026 as buyers and sellers grow more aligned on pricing, interest rates stabilize, and transaction volume improves, according to Multifamily Dive. Executives say distress remains limited, although leverage issues and maturing loans could prompt more sales by mid-2026. Investors are increasingly drawn to coastal markets with steadier rent growth, while oversupply in the Sunbelt is expected to ease as new construction slows and rents stabilize. Ample debt and equity remain available, thanks to higher lending caps for Fannie Mae and Freddie Mac, although smaller sponsors face a tighter investor appetite. Private capital is driving most acquisitions as several smaller REITs pursue liquidation or strategic reviews, while larger REITs stay sidelined until pricing adjusts. Together, these forces indicate a more active, yet cautiously optimistic, multifamily market.
• The build-to-rent market has grown as high mortgage rates, record low first-time homebuyer share, and rising demand for suburban living push more Americans toward long-term renting, according to Bisnow. The sector now delivers tens of thousands of units annually, with a heavy concentration in the South, and appeals to aging millennials, downsizing boomers, and renters seeking single-family amenities without the financial burden of ownership. Developers are diversifying product types, from ranch homes to townhomes, while navigating local pushback and uncertainty over how the Trump administration’s proposed limits on institutional single-family purchases might affect build-to-rent. Despite recent performance challenges tied to interest rates, inflation, and pockets of oversupply, operators say long-term fundamentals remain strong, with broad investor interest, growing societal acceptance of renting, and expectations that supply pressures will ease over the next 12 to 18 months.

• Sunbelt cities are grappling with a wave of oversupply in high-end apartments, creating some of the most renter-friendly conditions in the country as developers work through a pandemic-era construction surge, The Wall Street Journal reports. Phoenix stands at the center of this trend, with 54% of rentals offering at least a month of free rent and some luxury properties dangling more than three months of concessions, plus perks like gift cards and discounted event tickets. Similar dynamics are emerging in Denver and Charlotte, where more than half of units also come with free rent offers, in stark contrast to the tight coastal markets of New York and Los Angeles. While concessions help landlords preserve headline rents, Phoenix’s prices still fell 4% in 2025, and discounts remain concentrated in new luxury buildings. Developers expect the Sunbelt’s excess supply to burn off within 12 to 18 months, tightening conditions again.
• Amid a softening job market and tighter immigration policy, multifamily rents and demand are weakening, according to Yardi Matrix. The average advertised US rent decreased by $5 in December to $1,737; year-over-year rent growth declined 20 basis points to 0.0%. While oversupply in some markets has slowed rent growth over the past two years, the weakness was confined to specific cities, primarily in the Sunbelt. Single-family build-to-rent also saw rents drop in December, falling $4 to $2,180 from November and 1% compared to December 2024. A correction in rent growth was likely inevitable following the surge in rent costs during the pandemic. While rents remain pressured, occupancy has held steady as the high costs of transitioning to homeownership keep renters in place.