US Real Estate Sector NAICS 531

Jan 21, 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. Industry insiders suggest 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.
• A predicted surge of mergers and acquisitions in 2026 is poised to reshape nonresidential real estate as newly combined companies race to consolidate footprints, merge headquarters, and dispose of excess space, according to Bisnow. Owners of office, retail, and logistics properties face both risks and opportunities as megadeals accelerate amid lighter regulation, abundant private equity capital, and tax-driven corporate liquidity. Brokers say rightsizing decisions must be completed within 18 months of a merger, creating rapid cycles of leasing, sales, and repositioning that directly affect asset values. AI is expected to intensify post-merger space consolidation, though its impact on total square footage remains uncertain. Rising occupancy, along with higher construction costs, is pushing firms to optimize existing space rather than build new. For landlords, the M&A boom could drive heightened turnover, shifting demand, and increased reliance on advisory services.

• 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.
• Millions of homeowners remain locked into mortgage rates at or below 4%, a dynamic that continues to freeze the housing market even as current rates fall, according to The Wall Street Journal. The lock in effect has kept inventory depressed for three years, since many owners refuse to give up ultralow loans secured during 2020 and 2021. Near record home prices, rising insurance costs, and higher property taxes are adding to affordability pressures, and economists do not expect mortgage rates to fall enough to motivate most owners to move. While lower rates and softening prices have boosted activity in parts of the South and West, overall existing home sales remain near 30-year lows. Analysts say it may take years for incomes to catch up, leaving only those who must relocate willing to sell while discretionary movers continue to stay put.