The Case for Sun Belt Multifamily in a Higher-Rate Environment

Higher financing costs have compressed transaction volumes, but the underlying demand story for Sun Belt multifamily is intact: net in-migration, employment growth, and household formation continue to outpace national averages in our target metros.

The near-term supply wave is real — and it is also finite. Starts have fallen sharply, and deliveries taper meaningfully after 2026. Investors able to acquire recent-vintage assets below replacement cost today are positioned to own scarce product as the market re-tightens.

Our underwriting emphasizes basis over momentum: we target well-located communities where a conservative rent trajectory still clears our return thresholds, and where operational upside — not cap-rate compression — drives the business plan.