Smart money invests ahead of growth, and the tide is turning in the multifamily space and revealing new potential opportunities for investors ready to seize them.
Here’s why: Multifamily construction starts have fallen off a cliff — down roughly 30 percent from their peak of about 518,000 starts in first quarter 2022, according to the Federal Reserve Bank of St. Louis. This is setting up a pronounced supply shortage that will emerge between 2026 and 2028. Our data shows us these post-downturn vintages — like those following 2009 — have delivered strong returns for those who acted early.
Meanwhile, the cost to own a home has soared. It is roughly 64 percent higher than renting, according to Newmark Research and others, pushing even affluent households to keep renting. Wage growth has improved affordability as new construction slows, creating powerful demand tailwinds.
However, there’s more than one way to invest in multifamily real estate. Some investor
