As recently reported in the WSJ, KKR’s recent acquisition of over 5,200 apartment units for $2.1 billion highlights a growing confidence in the multifamily housing market. Despite recent struggles in the sector, such as flat rent growth and higher interest rates that have suppressed property valuations, prominent investors are signaling a potential rebound.

With a downturn in new construction starts suggesting a forthcoming decrease in supply, rent increases are expected to accelerate by 2026. This shift is creating attractive investment opportunities, particularly as distressed properties become more prevalent. For investors, this could be a strategic time to consider multifamily real estate, especially in markets where future supply constraints are likely to drive up rents.