The latest JBREC index shows a more cautious investment environment in Q2 2026 as rising inflation concerns, higher borrowing costs, and policy uncertainty weigh on multifamily sentiment.
Index values below 45 indicate a contracting market, while readings above 55 suggest expansion. Values between 45 and 55 reflect a market balanced between buyers and sellers.
- 33% of multifamily investors said capital conditions tightened quarter-over-quarter, versus just 16% who reported improvement.
- 72% of investors reported modifying acquisition underwriting, most commonly by increasing reserve and operating expense assumptions, raising financing cost expectations, and revising rent growth forecasts.
- 65% expect rent growth in high-supply Sunbelt markets to stay below 3% through 2028.
- 63% remain on the sidelines.
Build-to-rent investors largely hit pause during the quarter as uncertainty surrounding the 21st Century Road to Housing Act weighed on new investment decisions. Nearly two-thirds of investors paused future allocations, while 28% redirected capital elsewhere.
Source: John Burns
Multifamily Market News 