- Camden is marketing $1.5B in California apartments amid surging investor demand.
- Investor interest in multifamily housing is rising despite falling rents and high vacancies.
- Most investors are turning attention to Sun Belt markets for future growth.
- Industry sentiment remains optimistic, with 87% planning portfolio expansion.
Investor Momentum Builds
CNBC reports that Camden Property Trust has put its California multifamily portfolio, totaling 11 properties valued at $1.5B, on the market and is seeing “huge” investor demand, according to CEO Ric Campo. This surge reflects a broader trend in multifamily housing, where investors remain active even as the sector’s fundamentals are softening.
Why Investors Remain Bullish
Despite a national median rent drop of 1.4% year-over-year and vacancies reaching a record high of 7.3% in January, investor appetite for multifamily housing continues to grow. Private capital and REITs led all real estate sectors in 2025 in deal volume, with transaction activity holding steady even as capitalization rates remain unchanged.
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Focus Shifts to Sun Belt
Camden’s decision to sell its California assets and concentrate in the Sun Belt—where 90% of its portfolio already resides—aligns with industry sentiment. Many investors anticipate stronger cash flow and better net operating income growth in Sun Belt markets due to business-friendly policies, affordability, and shifting migration patterns. Even as several Sun Belt metros experience notable rent declines, the region remains a top target for long-term multifamily investment. The majority of investors surveyed by Berkadia also expect moderate rent growth in these regions in 2026.
Long-Term Outlook Shapes Strategy
Market participants are looking beyond current softness, betting on improved conditions by 2027 and beyond. Slower multifamily construction starts and expected gains in household formation could tighten supply and support future rent growth. Experts highlight the importance of careful market selection, with alternatives like senior living and student housing also attracting attention.
