In 2026, accredited investors are advised to adopt a selective approach to private-market real estate, particularly in the multifamily sector, as rising inflation and volatility reshape the landscape. With mortgage rates remaining high, renting has become a more viable option, evidenced by a CBRE report showing a 105% premium for buying versus renting. As multifamily construction slows—expected to drop to 392,000 starts in 2026—investors should focus on markets with positive rent growth and controlled supply, particularly in the Midwest and Northeast, where conditions favor durable cash flows.
Lightstone, a seasoned player in the multifamily space with over 25,000 units, exemplifies this strategy by concentrating its portfolio in regions with healthier rent performance and less supply pressure. Their vertically integrated model allows individual investors to participate in the same opportunities as Lightstone, benefiting from their extensive market insights and operational expertise.
For investors, the key takeaway is the importance of geographic focus in multifamily investing. Markets like the Midwest present a more favorable environment for sustained rent growth and reduced competition, making them attractive for long-term investment strategies.
Source: benzinga.com