multifamily Multifamily Cap Rates 2026: Why Sun Belt Apartments Are Finally Repriced — and the Three Markets Still Mispriced The Sun Belt apartment trade — buy class-A garden-style apartments at 4.5% cap, ride 5-6% rent growth, refinance into permanent debt — broke in 2023. The repricing finally completed in Q2 2026. Three regional markets are still mispriced.
St. Louis St. Louis Permits Suggest Multifamily Revival St. Louis multifamily permits rose 23% year-over-year in Q1, one of the few metros showing growth as national multifamily activity contracted 12%.
Indianapolis Indianapolis Multifamily Cap Rates Reach 7% in 2026 Indianapolis multifamily cap rates reached 7.0% in Q1 2026, attracting value-focused investors as coastal metros compress below 5.5%.
multifamily Multifamily Permits Slide 12% as Financing Tightens Multifamily permits for buildings with five or more units declined 12% year-over-year in the first quarter as financing conditions remained tight.
cap rates Rental Cap Rates Compress in Major Metros as Demand Holds Prime stabilized multifamily cap rates compressed 15 basis points in six top metros during the first quarter as investor demand firmed.
Phoenix Phoenix Rental Market Cools as New Multifamily Opens Phoenix apartment rents fell 3.3% year-over-year in March as 28,000 new units delivered in the past 18 months and vacancy climbed to 9.4%.
Rent Growth Rent Growth Slows Nationally as New Supply Hits Market National asking rents rose just 0.7% year-over-year in March, the slowest pace since 2010, as new multifamily deliveries absorbed demand.
