10 Things to Watch in Multifamily in 2026
As the multifamily market closes out a volatile few years, 2026 is shaping up to be a period of normalization rather than dramatic swings . While uncertainty remains around interest rates, regulation, and global economics, fundamentals are beginning to stabilize, particularly in supply-constrained, high-barrier markets like the Bay Area . Here are ten trends worth watching as multifamily heads into 2026. 1. Slower New Supply Will Matter More Than Demand Headlines Across many U.S. metros, multifamily permitting has slowed materially compared to pre-pandemic levels. In high-barrier markets, financing constraints and entitlement challenges continue to suppress new development. While demand may fluctuate month to month, constrained supply is likely to provide longer-term support for well-located assets . 2. Pricing Discovery Will Continue, Rather Than Reverse Rather than a sharp rebound or collapse, 2026 is expected to bring continued pricing discovery. Bid-ask spreads are narrow...