Over the past 12 to 24 months, RSN has focused on a developing opportunity in multifamily: apartment values were resetting after the sharp increase in interest rates that began in 2022, while the underlying need for rental housing remained durable, new construction was slowing and the cost of homeownership was pushing more households to rent for longer.
Today, those same fundamentals are being highlighted publicly by some of the largest and most recognizable investment organizations in the world.
In recent months, Bank of America, State Street, Morgan Stanley, Apollo, BlackRock, J.P. Morgan and Goldman Sachs have each published constructive outlooks for commercial real estate, residential real estate or U.S. multifamily. While their reports differ in scope and emphasis, they repeatedly point to the same underlying forces: repriced assets, declining future supply, persistent renter demand and the potential for income-driven returns.
Major financial institutions are no longer simply observing the multifamily market from the sidelines. They are publicly identifying apartments and residential real estate as increasingly attractive opportunities for long-term capital.
What Major Institutions Are Saying
Two of the recent publications are dedicated specifically to U.S. multifamily.
In April 2026, State Street Investment Management published Private US Multifamily Real Estate Looks Attractive, concluding that the sector is entering a more attractive investment phase as new supply peaks, homeownership remains expensive and reset pricing creates potential opportunities for long-term investors.
That same month, Morgan Stanley Real Estate Investing published US Multifamily: A Cyclical Opportunity with Structural Demand Support, arguing that reduced new supply, affordability-driven rental demand and valuations below replacement cost in many markets are creating an increasingly favorable environment for disciplined multifamily investors.
Other major financial institutions are reaching similar conclusions within broader private real estate and commercial real estate outlooks:
- BlackRock identified apartments and industrial properties as among its largest real estate opportunities for 2026 in Private Markets Outlook 2026: A New Continuum, citing the real estate reset and a new cycle led by residential, industrial and specialized property types.
- J.P. Morgan Asset Management stated in Alternative Investments Outlook 2026 that residential rental assets should remain popular with investors and that attainably priced multifamily projects have among the best prospects within the sector.
- Apollo Global Management stated in Why Real Estate in 2026? that real estate has repriced, supply is limited and recovery is beginning to take shape. Its report identifies multifamily as a sector offering stable, durable net operating income growth.
- Bank of America reported in Anticipating Opportunities in Real Assets that commercial real estate appears to be turning the corner after the interest-rate-driven reset that began in 2022, with apartments benefiting from both secular and cyclical demand trends.
- Goldman Sachs Asset Management concluded in Exploring Alternative Dimensions Across Private Markets in 2026 that real estate may be ready for a rebound, supported by stabilizing cap rates, positive rent growth in most sectors and declining new construction that should ease pressure in previously oversupplied multifamily markets.
These institutions are not all making identical forecasts, and they are not suggesting that every apartment acquisition is attractive. What is notable is the increasing consistency of the underlying thesis: selectively acquired multifamily assets may be well positioned as values reset, future supply moderates and rental housing demand remains durable.
The Shared Institutional Thesis
Across these reports, four themes appear repeatedly.
1. Apartment Values Reset Before the Need for Housing Changed
The increase in interest rates beginning in 2022 caused a significant repricing of commercial real estate, including multifamily. Apartment values declined as financing became more expensive and buyers adjusted their required returns upward.
But the underlying need for housing did not disappear.
Morgan Stanley reports that multifamily transaction prices fell approximately 20% during the recent repricing cycle. At the same time, Apollo reports that across institutional commercial real estate, net operating income increased approximately 11% over the correction period, even while capital values declined approximately 19% and cap rates expanded approximately 90 basis points.
That distinction matters. The market correction was driven significantly by capital markets and financing costs, rather than solely by a deterioration in property-level performance.
For long-term apartment investors, that reset may create the ability to acquire fundamentally durable properties at a more rational basis than was available during the low-rate peak of the market.
2. The Wave of New Apartment Supply Is Receding
One of the largest challenges for multifamily over the past several years was not a collapse in renter demand. It was an unusually large wave of new apartment deliveries created during the low-interest-rate development cycle.
That wave placed pressure on rents and increased concessions in certain markets, particularly where a large volume of new units arrived at the same time.
The institutional reports increasingly indicate that this pressure is moderating.
State Street reports that fourth-quarter 2025 multifamily deliveries fell approximately 30% from the prior quarter and that projected first-quarter 2026 new supply was nearly half the level reached in the third quarter of 2024. State Street also notes that apartment construction starts are now at their lowest level in more than a decade.
Morgan Stanley similarly reports that multifamily construction starts have declined approximately 50% nationally from 2023 levels. Apollo shows multifamily units under construction declining approximately 49% from indexed peak levels.
This does not mean every market is immediately clear of new-supply pressure. Local market selection remains critical. But the broad direction matters: fewer new developments beginning today generally means reduced competitive supply over the years ahead.
For existing apartment communities in markets with healthy demand and limited incoming competition, that environment can support occupancy, renewal pricing and eventual rent growth.
3. Renting Remains More Attainable Than Owning
The demand case for multifamily is increasingly being driven by a straightforward reality: for many households, homeownership has become much harder to afford.
Higher home prices, elevated mortgage rates, insurance, taxes and down payment requirements have widened the gap between owning and renting. State Street reports that the monthly cost gap between purchasing a median-priced home and renting remains approximately 23% in favor of renting. Morgan Stanley expects affordability pressure to contribute to approximately 2.5 million new renter households between 2025 and 2028.
J.P. Morgan makes the point particularly clearly. Its 2026 alternatives outlook states that U.S. residential markets remain structurally undersupplied and that attainably priced multifamily projects have among the best prospects in the rental housing sector.
This is particularly relevant for apartment communities serving working households and families. For many residents, the alternative to renting is not another apartment community; it is the purchase of a home that may currently be financially out of reach.
As homeownership remains difficult, professionally managed rental communities can benefit from residents staying longer, maintaining occupancy and seeking quality housing without the substantially higher cost burden of purchasing a home.
4. The Next Phase of Returns Should Be Driven by Income, Not Speculation
One of the most important shared conclusions across these institutional reports is that the next phase of real estate performance is likely to be driven more by property income and disciplined execution than by aggressive valuation assumptions.
Bank of America states that commercial real estate returns are likely to be driven more by growing cash flows than by cap-rate compression.
BlackRock similarly emphasizes income generation and identifies the rapid repricing of real estate values as creating an attractive entry point for investors.
Apollo emphasizes that performance will depend on sector selection, asset quality, balance-sheet discipline and market-specific supply conditions.
This is important for investors. A compelling multifamily investment today should not require an immediate decline in interest rates or a dramatic increase in property values. The investment case should begin with current basis, current cash flow, durable financing and a credible operational business plan.
For apartment owners, that means focusing on the fundamentals that directly influence net operating income:
- Occupancy and resident retention.
- Rental pricing supported by local demand.
- Targeted, proven renovation premiums.
- Ancillary income opportunities.
- Disciplined expense management.
- Conservative leverage and financing structure.
- Exit assumptions that do not rely on aggressive cap-rate compression.
The opportunity is not simply to own apartments because major institutions now favor the sector. It is to acquire the right apartments, at the right basis, with the right financing and operational plan.
Why the Timing Matters for a Five-Year Investor
Multifamily investing is not typically about predicting next quarter’s market movement. It is about acquiring assets whose fundamentals have time to compound over an investment cycle.
All RSN investment opportunities are underwritten around an expected five-year hold period.
That matters in the current environment because a five-year investment initiated today may span several important developments:
- The continued decline of new apartment deliveries from the prior construction cycle.
- The absorption of recently completed units in markets where supply temporarily exceeded demand.
- Continued renter demand supported by the high cost of homeownership.
- Potential improvement in occupancy, renewal rates and rent growth as competing supply moderates.
- Operational execution translating into higher net operating income.
- Potentially more liquid transaction markets by the time an asset is ultimately sold.
Importantly, this thesis does not require an investor to perfectly identify the bottom of the market. Nor does it require immediate appreciation.
A well-structured five-year investment can be positioned to benefit from improving apartment fundamentals over time, while generating cash flow from an existing operating property during the hold period.
Any future improvement in transaction liquidity or valuation may enhance results, but it should not be the foundation of the investment case. The foundation should remain disciplined purchase basis, durable income, appropriate financing and a business plan designed to grow cash flow over time.
Institutional Consensus Does Not Eliminate the Need for Discipline
The increased institutional conviction around multifamily is meaningful, but it does not make every apartment acquisition attractive.
The institutions publishing positive views are also consistently emphasizing selectivity. Supply conditions vary materially by market. Expenses such as insurance, taxes, payroll and maintenance can meaningfully affect returns. Financing structure can determine whether an otherwise strong property performs successfully through a market cycle.
A disciplined multifamily investment strategy must still evaluate:
- Purchase price relative to replacement cost and comparable sales.
- Existing cash flow and occupancy.
- Local supply pipelines and directly competing properties.
- Resident affordability and demand drivers.
- Financing terms, leverage and maturity risk.
- Expense assumptions and operational efficiencies.
- Renovation upside supported by market evidence.
- Conservative assumptions at exit.
This is where a favorable market thesis still depends on careful execution.
The Opportunity Has Become More Visible
The multifamily opportunity did not suddenly emerge because major institutions began writing about it. It developed as prices adjusted, development pipelines contracted, homeownership became increasingly unaffordable and rental demand remained resilient.
What has changed is visibility.
Many of the fundamentals RSN has focused on throughout the market reset are now being publicly identified by Bank of America, State Street, Morgan Stanley, Apollo, BlackRock, J.P. Morgan and Goldman Sachs.
Their shared conclusion is increasingly clear: well-selected apartment assets acquired after repricing, supported by durable rental demand and reduced future supply, may offer an attractive opportunity for long-term investors.
RSN currently has multiple cash-flowing multifamily investment opportunities available for active investment that were acquired below estimated replacement cost and align closely with the market fundamentals highlighted by these major financial institutions.
Schedule a call with the RSN team to learn more about current opportunities.
Institutional Research Referenced
Goldman Sachs Asset Management, Exploring Alternative Dimensions Across Private Markets in 2026, November 18, 2025.
Bank of America Specialty Asset Management, Anticipating Opportunities in Real Assets, May 2026.
State Street Investment Management, Private US Multifamily Real Estate Looks Attractive, April 27, 2026.
Morgan Stanley Real Estate Investing, US Multifamily: A Cyclical Opportunity with Structural Demand Support, April 13, 2026.
Apollo Global Management, Why Real Estate in 2026?, March 2026.
BlackRock, Private Markets Outlook 2026: A New Continuum, November 18, 2025.
J.P. Morgan Asset Management, Alternative Investments Outlook 2026, December 10, 2025.
This material is for informational purposes only and is not an offer to sell or a solicitation of an offer to purchase any security. Any investment opportunity will be made only through the applicable offering documents and is available only to eligible investors. Real estate investments involve risk, including the possible loss of principal. Projected hold periods, distributions and returns are not guaranteed.
Reed Goossens is an Australian-born real estate entrepreneur, investor, author, public speaker, and an all-around good bloke. Reed got his start in real estate investing back in 2012 when he moved to the US.
