- 72% of surveyed investors intend to moderately expand their multifamily portfolios in 2026.
- Core-plus and value-add strategies are seen as most attractive for multifamily investment.
- Most investors expect moderate rent growth between 1% and 3%.
- Government-sponsored enterprises remain seen as leading multifamily lending sources this year.
Investor Momentum Builds
The Multifamily Executive reports that optimism in multifamily investing is returning as conditions across the sector begin to improve. Berkadia’s latest Multifamily Investor Sentiment Survey, which includes more than 250 senior investors, shows growing confidence in the market’s direction. Many respondents expect a more stable investment climate in the near term. They also anticipate stronger multifamily opportunities in the second half of 2026 and into 2027.
What’s Driving Optimism
Investors cite a combination of moderating new supply, sustained long-term rental demand, and improving capital markets as key factors bolstering confidence. The survey found that 72% of participants plan moderate expansion of their multifamily holdings in 2026. Core-plus and value-add investment strategies—each favored by 35% of respondents—are seen as offering the best risk-adjusted returns, reflecting a growing appetite for yield.
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Market Expectations
Moderate rent growth in the range of 1% to 3% is widely predicted. Notably, difficulty in making deals pencil is easing, with only 1% of respondents describing it as very difficult compared to last year’s 48%. Nearly half now judge deals as neither easy nor difficult, signaling stabilization. This improving sentiment aligns with broader signs that multifamily fundamentals are stabilizing after a volatile stretch for the sector. Key challenges remain, including finding viable deals, operating expense growth, and interest rates. Regionally, the Southeast, Midwest, and Northeast are expected to be most attractive for multifamily investment in the year ahead.
Lending Landscape
Multifamily investment activity continues to benefit from robust liquidity, though government-sponsored lenders—primarily Fannie Mae and Freddie Mac—are expected to be the most active financing sources. Banks and private debt funds also play notable roles as the sector’s lending landscape adjusts to evolving market dynamics. Multifamily investment trends throughout 2026 are likely to reflect this renewed confidence and evolving capital environment.
