Inflation Surges: What’s Next for Multifamily?
The latest inflation numbers jumped from 2.4% to 3.3%, driven by a 30.7% monthly increase in fuel oil prices. Core inflation, which omits volatile food and energy prices, barely increased from 2.5% to 2.6%, but oil prices could indirectly affect core inflation if the the conflict in Iran continues for a sustained period. Additionally, preliminary numbers for the most recent consumer sentiment are lower as consumers react to high gas and energy prices. The apartment market, however, remains in relatively the same steady state as it has been for the past 3 years, with (gradually) strengthening fundamentals as supply growth falls. Diligent investors have been on the lookout for multifamily deals, and rising distress along with approaching loan maturities could bring additional opportunities as the year progresses.
National YoY Rent Growth Average, March 2026*
-0.42% ↓
* Based on data from RealPage, Zillow, Yardi Matrix, Apartment List, and CoStar
National Occupancy Average, March 2026*
93.83% ↑
* Based on data from RealPage, Yardi Matrix, Apartment List, and CoStar
3.61% ↓
3.64% –
CRE, Inflation, and the National Economy
Inflation Surge Driven by High Oil Prices, but Shelter Inflation Unchanged (Bureau of Labor Statistics)
Impact of Tariffs on U.S. CRE Construction Costs (Cushman & Wakefield)
Early Numbers Show Consumer Sentiment Down 11% in April (University of Michigan)
Iran Conflict Sparks New Surge in CRE Construction Costs (GlobeSt)
Apartment Markets and Reports
March 2026 National Multifamily Report: Midwest Markets in the Lead (Yardi Matrix)
Labor trends pose significant implications for multifamily (Marcus & Millichap)
March 2026 CRE Report: Multfamily Cap Rates Compress 37 BPS (Crexi)
Multifamily and the Housing Market
Apartment Demand Rebounds in 1st Quarter as Supply Volumes Continue to Slow (RealPage)
Is Housing Inventory about to Turn Negative Year-over-Year? (HousingWire)
US home price insights — April 2026: Price Growth Slows to 0.5% YoY (Cotality)
Commercial Real Estate, AI, and the Lending Market
AI and the Future of Office: Quantifying Workforce Change and Space Demand Through 2030 (Newmark)
CMBS Distress Rate Rankings: Top 100 U.S. Markets by CBSA — February 2026 (CRED iQ)
April 2026 CMBS Hard Maturities Show Modest Deterioration, Concentrated in Office & Lodging (Trepp)
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