Our Multifamily Rental Panel expressed optimism about the outlook for operating fundamentals, highlighting year-over-year declines in apartment deliveries, strong renter demand, and favorable affordability dynamics. The recovery in rent growth is expected to vary by region, with coastal markets currently further along than Sun Belt counterparts. In the meantime, panelists see ample opportunity to acquire assets at discounts to replacement cost ahead of a broader improvement in operating fundamentals. Ultimately, an increase in assets listed for sale should help unlock additional transaction volume. Looking ahead, panelists plan to start more construction projects in 2027 than in 2026, seeking to capitalize on a more favorable operating environment in subsequent years as the supply pipeline moderates.
