Multifamily Investors Say It's Go Time

Investment momentum is building across the multifamily sector as 2026 gets underway, with more investors preparing to transact, lenders loosening the flow of capital and distressed assets expected to return to the market, according to Marcus & Millichap's John Chang.

After meeting with dozens of clients at the National Multifamily Housing Council's annual conference, Chang said sentiment has shifted meaningfully compared with recent years.

"First, investment activity in general appears to be gathering momentum," he said. "Investors told me they had capital that was ready to deploy and they're anxious to put it to work."

Unlike the cautious approach that characterized the past few years, many investors said they plan to complete multiple acquisitions this year. Several told Chang they expect to close three, five or even more than a dozen deals in 2026, a sharp increase from prior targets of just one or two transactions annually.

Institutional investors and large funds, particularly those backed by dedicated capital sources such as family offices, expressed the most enthusiasm, Chang said. While attendance from smaller syndicators appeared lighter, those that participated tended to be larger, more established groups with stronger track records.

Still, investors acknowledged ongoing headwinds. Slowing job growth could weigh on apartment demand and elevated supply, especially across Sun Belt markets, continues to pressure performance. Many expect 2026 to remain uneven as new deliveries are absorbed. Over the longer term, however, most believe fundamentals will improve once the supply overhang clears.

The second theme Chang heard repeatedly was improved access to debt. Higher agency allocations from Fannie Mae and Freddie Mac, along with more active bank and alternative lenders, are making financing easier to secure. Some investors also expect interest rates to edge lower, though uncertainty around the rate outlook remains, he said.

A third shift may create additional buying opportunities. Financial institutions are increasingly moving away from the "extend and pretend" approach that allowed struggling borrowers to delay resolutions. Instead, lenders are beginning to address troubled loans more directly.

"It looks like 2026 will be the year that the lenders begin to clean house and move those assets to market," Chang said.

In some cases, lenders are working with new operators to facilitate transitions. In others, foreclosures or receiverships may precede a sale.

Either way, more distressed or reset-basis properties are expected to become available, potentially giving well-capitalized investors opportunities to acquire assets at lower prices, according to Chang.