March saw a more cautious tone across commercial real estate. Political and macro uncertainty caused many to pause, even as capital remained interested in the sector and the apartment pipeline thinned.
In this edition, we share a brief apartment market update, an on-the-ground look at our project breaking ground in Kerrville, Texas, and a tax-season resource for investors.
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What’s Happening in the Apartment Market?
March Brought a Wider Bid-Ask Gap in Conviction
The national apartment market is still working through the back end of the supply wave. According to CoStar, over the past 12 months the U.S. delivered about 490,800 units and absorbed about 399,700, with vacancy at 8.5% and asking rent growth near 0.1%. Construction starts remain at their lowest level in more than a decade, and the development pipeline is thinning as fewer projects move forward. The market is still absorbing yesterday’s supply while tomorrow’s competition is already shrinking.
Capital markets are gradually reopening. CoStar shows roughly $128 billion in trailing 12-month multifamily sales volume, with January activity up 27% from a year earlier. Debt availability is better than it was a year ago, and private capital remains active. Even so, buyers stayed highly selective. The market rewarded current cash flow, realistic basis, and assets that could stand on their own without an aggressive recovery story attached.
Political and macro uncertainty made it harder to hold conviction through a normal 60- to 90-day diligence period, especially when debt costs could move during that window. The commercial real estate market entered the year with real optimism and productive early activity, but because deals take time to close, transaction data does not immediately reflect a shift in sentiment. When Treasury yields remain elevated, oil revives inflation concerns, and headlines shift by the hour, buyers and lenders move more carefully. Deals still get done, but they clear on current cash flow, realistic basis, and underwriting that can hold up through volatility.
A 104-unit expansion of Steadfast’s existing Kerrville community broke ground in March, a meaningful milestone at a time when many multifamily developments are still struggling to move forward (see site photo below). What's interesting about this project is that Phase I is fully occupied and has built a waiting list, which gave the team evidence of demand before construction. As James Palda, SVP of Development & Construction at Steadfast, noted, “the timing was right to start Phase 2.”
With the same contractor, subcontractors, and design team returning from Phase I, the project benefits from continuity as work moves ahead. For investors, this is a useful example of how Steadfast is pursuing growth in the current market: by expanding where demand has already been tested and execution risk is better understood.
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Your Resources Hub
Tax-Season Guide: A Practical Look at Self-Directed IRAs
Many investors use this time of year to take a closer look at how their capital is structured. For those considering private real estate, a Self-Directed IRA can be one way to invest retirement assets beyond traditional public market holdings.
Our new guide, "A Guide to Investing in Multifamily Through a Self-Directed IRA in 2026," explains how the structure works, what to think through before using it, and where investors should pay close attention.
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This email is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. Any securities offerings will be made only to persons who are verified as Accredited Investors, pursuant to Regulation D, Rule 506(c), of the Securities Act of 1933, as amended, and only through the delivery of definitive offering documents, including a Private Placement Memorandum. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. Forward-looking statements contained herein are not guarantees of future performance and involve risks and uncertainties that may cause actual results to differ materially. Prospective investors should consult their legal, tax, and financial advisors before making any investment decision. Steadfast Direct is the business name used by Steadfast Investment Management LLC.
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