A Growing Case for Fed Rate Cuts
Dramatic downward revisions to last year’s jobs numbers, along with continued lower inflation readings from the latest Consumer Price Index report, hit upon the Federal Reserve’s dual mandate of encouraging employment and reducing inflation. A revived rate cut cycle could create some particularly interesting dynamics in the multifamily market, which has spent the better part of the last four years adjusting to higher rates. Low apartment sales activity has slowly picked up as the bid-ask gap slowly shrank and sellers realized that the sky-high prices of 2021 were not returning. Lower interest rates could bring cap rates down, but with apartment performance comparatively cooler in 2026 compared to five years ago, investors and apartment buyers will be bringing more discipline to their acquisition strategy.
National YoY Rent Growth Average, November 2025*
-0.25%↑
* Based on data from RealPage, Zillow, Yardi Matrix, Apartment List, and CoStar
National Occupancy Average, November 2025*
93.33%↓
* Based on data from RealPage, Yardi Matrix, Apartment List, and CoStar
3.65% ↑
3.64% –
Interest Rates, the Economy, and the CRE Market
A Dual Mandate Double-Feature: 3 Rate Cuts in 2026? (Berkadia)
Consumer Price Index: All Items Inflation Down from 2.7% to 2.4% YoY (Bureau of Labor Statistics)
Labor Market Revisions Shed New Light on the Commercial Real Estate Outlook (Marcus & Millichap)
CRE Financing Spreads Are Compressing, Especially in Multifamily (CRED iQ)
Cap Rates and Multifamily Reports
4Q2025 Cap Rate Survey: Nearly All Respondents Believe That Cap Rates Have Peaked (CBRE)
Capital, Consolidation & Confidence: Multifamily Themes Emerging from NMHC (CBRE)
Construction Trends and Housing Market Data
Cost of Credit for Builders & Developers at Its Lowest Since 2022 (NAHB)
Construction Insights: Skilled Labor and Supply Chain Issues Persist (Cushman & Wakefield)
Buyers Are Ghosting the Market: The Metros Where They’re Backing Out of Deals (Realtor.com)
How Will a Downshift in Population Growth Affect Housing Demand? (GlobeSt)
Realtor Confidence Increases Modestly in Early 2026 (NAR)
Commercial Real Estate Reports
Q4 2025 Life Sciences Report: Pharma Production Expands (Newmark)
Q4 2025 Office Market Report: Recovery Spreading to Additional U.S. Office Markets (Colliers)
Self storage supply forecast increases for all years (Yardi Matrix)
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