Rent Spikes are a Thing of the Past—But Investors Can Look Forward to a Stable Multifamily Market Instead

What Investors Need to Think About in 2026 and Beyond

According to the Yardi report, as markets return to normal, investors will need to adjust their strategy. What that looks like in practice is an emphasis on cost control in existing markets, as opposed to scouting out new ones. 

The biggest challenge investors will face is shrinking margins amid high operational costs, especially insurance. Testing prospective investment locations for stable occupancy rates will be paramount. According to CRE, “Household formation, while soft in the near term, is expected to rebound mid-decade, offering a firmer demand base just as new inventory comes online.” 

The questions will be: Where do these newly formed households want to stay until (and if) they are in a position to buy? Where do families renew their leases consistently, instead of passing through and moving on? 

In many ways, investors will have to go back to the strategy drawing board, performing meticulous research into each potential lead and assuming that margins will be very tight. 

Another Investment Option

Don’t want to deal with all that? You have other options. For example, you can invest in real estate short notes with Connect Invest. Essentially, you’ll be investing in a diversified portfolio of real estate at every stage of construction: no need to worry about picking the right metro area! 

What’s even better is you can lock in at 7.5%-9% interest earned on your investment, with a minimum investment amount of as little as $500. 

You can invest for a period of six, 12, or 24 months, which mitigates the risk from that ever-present potential of market shifts. It’s a great way to dip your toes in the water and find out if real estate investing can work for you without having to do all that work yourself.