Recent trends in the U.S. apartment sector highlight an interesting dynamic: new construction has slowed significantly as many regions work through excess supply. See the graph below which displays declining construction starts over the last five years coupled with strong absorption rates.
This shift, combined with steady demand, is creating conditions that could potentially be setting the stage for a rebound in prices in 2026 and beyond. For example, gateway markets like San Francisco and New York, along with supply-constrained Midwestern cities, have shown healthy rent growth which directly impacts multifamily property values.
Are you an RIA interested in learning more about how private real estate can fit into diversified client portfolios?
Note: Investing involves risk and principal loss is possible. Distributed by Foreside Funds Distributors LLC. For important information about the Fund, please click here.