THE STEADFAST VIEW

Market insights. Research. Perspectives. Behind the scenes.

Issue 02 | December 2025

Hello there,

Happy Holidays! 

As we close out the year, this edition of The Steadfast View takes a clear look at where the multifamily market stands today and what is beginning to take shape heading into 2026.

Each month, our goal is simple: to cut through noise and offer investors a grounded view of the market alongside a window into how Steadfast operates across investments, teams, and communities.

Earlier this fall, we launched Steadfast Direct, our direct-to-investor platform, designed to make it easier for accredited investors to co-invest alongside us. We also hosted a leadership webinar (recording available here) where our team discussed today’s multifamily opportunity set, our investment thesis, and a real-world case study at Estraya Boerne.

With a lot being said in the investing space right now, the following note focuses on what matters and why.

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What’s Happening in the Apartment Market?

Capital is becoming more workable, but discipline still defines outcomes.

Late-2025 rate cuts have reduced interest-rate volatility, making financing costs easier to underwrite heading into 2026. According to CoStar’s December Capital Markets Report, this has led to more productive buyer–seller engagement and a modest pickup in transaction activity, without a broad return to risk. Activity remains led by high-net-worth investors, family offices, and experienced operators who are pricing deals to today’s cost of capital rather than relying on aggressive assumptions. As Dr. Peter Linneman often notes, when growth is muted, capital structure tends to matter more than forecasts.

Concessions are doing the work.

RealPage’s November data shows concessions absorbing excess supply in high-delivery submarkets while face rents largely hold. In practice, this means owners are using temporary incentives to maintain occupancy without permanently lowering rents. Historically, this approach allows income to normalize as new deliveries slow, rather than resetting cash flows long term.

Renters are prioritizing value.

CoStar’s national data shows stabilized and attainable communities capturing a larger share of net absorption as households focus on affordability, location, and predictability. Newly delivered, higher-priced assets remain more competitive during lease-up, particularly in markets with elevated supply, placing greater emphasis on pricing discipline and resident retention.

What this means for investors:

This phase of the cycle is less about calling the next inflection point and more about understanding how assets perform when growth is slower and capital is selective.

When rent growth moderates, expense control matters more because margins are thinner. When concessions rise, resident retention matters more because turnover costs are harder to offset with rent increases. And with financing costs still higher than the last cycle, capital structure matters more because leverage leaves less room for error.

In this environment, assets with steady demand, realistic underwriting, and consistent operations tend to produce more durable outcomes. That is why our focus remains on owning and stabilizing properties that can perform across a wider range of scenarios as the market works through this adjustment and positions for its next growth phase.

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Behind the Scenes at Steadfast

People-First Operations That Compound Over Time

We recently spoke with Sara Sprankles, Director of Property Management, and her team to better understand how Steadfast is approaching operations heading into 2026.

A recurring theme emerged. Steadfast invests in people so our teams can show up consistently for residents.

That focus shows up in tangible ways. From people-performance-platforms and employee feedback surveys, to quarterly bonus structures, innovation contests, mentorship programs, and education reimbursement through the Steadfast scholarship program. The goal is straightforward. Build bench strength, reduce friction for teams, and allow on-site staff to focus on residents and execution.

At the property level, that philosophy translates into real outcomes.

Estraya Boerne   is one example. Since acquisition, occupancy has improved from ~84% percent to ~95 percent, despite competitive supply in the surrounding market. Renewal activity has remained strong, supported by consistent service, on-site engagement, and an experienced team committed to resident experience.

During the holiday season, teams also continued to invest in the community. From turkey giveaways at Residences at Salado to resident pie pick-up events at Estraya Boerne, these moments reinforce stability and connection at the property level.

This is the quiet work that does not always show up immediately in headlines, but compounds over time. 

Where We Put Capital to Work in 2025 📈

Steadfast remains active across acquisitions and development, reinforcing Steadfast’s investment thesis centered on durable cash flow, operational control, and scale in markets we are prioritizing.

Addison at Sutherland | 350 units | Knoxville, TN
$65.35 million purchase | 6.16 percent cap rate | Loan assumption |  Built 1979, renovated 2022

Residences at the Landing | 120 units | Kerrville, TX
$20.0 million purchase | 6.54 percent cap rate | New debt
Built 2021

Residences at the Landing Phase II | 104 units | Kerrville, TX
 Development parcel | $1.5 million | Closed November 2025

These transactions reflect Steadfast’s broader investment strategy centered on disciplined pricing, operational execution, and markets with durable demand. While not all opportunities are offered through Steadfast Direct, direct offerings are intentionally selective expressions of that same strategy.

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Your Resources Hub

MARKET INSIGHTS

Understanding Texas’s Multifamily Tax Advantage

Learn More →

INVESTOR GUIDE

The Complete Guide to Direct Multifamily Investing

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