Second annual investor survey highlights moderate portfolio expansion, improving investment conditions, and renewed long-term confidence
New York, New York – February 26, 2026 – Berkadia’s second annual Multifamily Investor Sentiment Survey reveals growing optimism across the sector as investors look ahead to 2026. Respondents expect improving investment conditions, moderate rental growth, and a more favorable capital markets environment, with the investment climate largely stable in the near term and strengthening in the second half of 2026 as capital markets normalize.
Conducted in January 2026, the survey captured insights from over 250 senior-level multifamily investors on portfolio strategy, property performance, and market conditions. While investors remain cautious amid operational and macroeconomic pressures, confidence is rebuilding as fundamentals stabilize and financing conditions gradually improve.
“Investor confidence is clearly rebuilding heading into 2026,” said Ernie Katai, Executive Vice President and Head of Production at Berkadia. “While underwriting discipline remains critical and challenges persist, improving market conditions, moderating supply and strong long-term rental demand are creating renewed momentum across the multifamily sector.”
A majority of respondents (72%) plan to moderately expand their multifamily portfolios in 2026, with additional investors expecting more aggressive growth. Most investors anticipate moderate rent growth from 1.0% to 3.0% as vacancy rates stabilize following a period of elevated new supply. As this wave of new deliveries is absorbed and the development pipeline normalizes, they expect market fundamentals to firm, supporting steady—though not outsized—rental growth.
Core-Plus (35%) and Value-Add (35%) are viewed as the most attractive risk-adjusted strategies for 2026. Compared with recent years, we’re seeing increased interest in Value-Add, driven by investors’ heightened focus on yield. Investors also expect to increase or maintain their exposure to Class A assets relative to Class B and C properties, underscoring a continued emphasis on quality and operational resilience.
On the capital markets front, investors overwhelmingly expect the 10-Year Treasury to retreat into a tighter, more favorable range by year-end 2026. Most respondents place the yield between 3.5% and 4.0%, signaling a clear belief that rate volatility has peaked and that the capital markets are stabilizing. More than half of respondents anticipate two Federal Reserve rate cuts. These trends are expected to gradually ease financing constraints and support increased transaction activity.
Click here for the view the Multifamily Investor Sentiment Survey.
Additional highlights from the survey include:
Underwriting conditions show modest improvement: Sentiment has shifted toward a more balanced view, with many investors saying it is neither easy nor difficult to make deals pencil, though some still find underwriting somewhat challenging. Last year, 48% of respondents found it very or somewhat difficult to make the numbers work; this year, only 1% found it very difficult.
Limited appetite for negative leverage: Most respondents are conservative about accepting negative leverage on 2026 multifamily acquisitions. 43% of respondents are unwilling to pursue deals with negative leverage, especially in markets with little to no rent growth, since rent growth is viewed as essential to “growing out” of negative leverage.
Southeast, Midwest and Northeast lead regional outlook: These regions are expected to offer the strongest multifamily opportunities in 2026, supported by migration trends and relative affordability.
Operational and macro challenges persist: Softening fundamentals, labor and insurance costs top the list of operational concerns, while deal feasibility, rising operating expenses and interest rates remain key macro headwinds.
GSEs expected to remain most active lenders: Fannie Mae and Freddie Mac are widely expected to be the most active multifamily lending sources in 2026, followed by banks and private funds/debt funds.