High Inflation and a CRE Reality Check
Both the Consumer Price Index (CPI) and Producer Price Index (PPI) reports showed increasing inflation last week, continuing a trend from the previous month. The PPI’s 6% annual increase was the highest since December of 2022, suggesting that consumers may be facing elevated price growth for a more sustained period. Multifamily investors are watching bond markets closely as 10-year Treasury yields jump and inflation continues to rise, keeping the Fed from cutting rates. This will continue a shift in the multifamily investment market, where higher financing costs place an even greater premium on cash-flowing investments.
National YoY Rent Growth Average, February 2026*
-0.45% ↓
* Based on data from RealPage, Zillow, Yardi Matrix, Apartment List, and CoStar
National Occupancy Average, February 2026*
93.35% ↑
* Based on data from RealPage, Yardi Matrix, Apartment List, and CoStar
3.60% ↓
3.64% –
Multifamily, Inflation, and the Bond Market
Q1 2026 Multifamily Capital Markets Report: “Capital and returns favor multifamily” (Newmark)
Kevin Warsh’s bond market bind (Axios)
CPI Inflation Up from 3.3% to 3.8%, PPI Up from 4.3% to 6.0% (Bureau of Labor Statistics)
House fixes Senate’s ROAD to Housing Act, BTR Saved (John Burns Research and Consulting)
Home Prices and Housing Market Data
Young Adult Homeownership Continues to Fall, Favoring Rental Demand (Apartment List)
Housing Forecast Data: Multifamily [2+ Units] Starts to Fall 5.5% by 2027 (Fannie Mae)
Homebuilder sentiment improves on late spring surge in demand (CNBC)
The Growing Gap Between Home Prices and Capital Gains Limits (NAR)
Multifamily Lending Markets
Mortgage Delinquencies Increase in the First Quarter of 2026 (Mortgage Bankers Association)
Bank Multifamily Delinquencies Up 5.9x Since the 2022 Cycle Low (CRED iQ)
CRE Lending Standards Hold as Large & Small Banks Diverge in Q1 2026 (Trepp)
Mostly Unchanged Demand, Lending Conditions for Residential Mortgages in First Quarter (NAHB)
Private Credit and CRE Markets
Private Credit Stress: Contained or Contagious? (CBRE)
The return in private credit may be clear. The risk isn’t. (MSCI)
Retail Foot Traffic Up 2.6%, Demand Resilient (Colliers)
Law Firm Report – Q1 2026: Trophy leasing momentum remains brisk (JLL)
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