THE STEADFAST VIEW

Market insights. Research. Perspectives. Behind the scenes.

Issue 04 | February 2026

Hello there,

February brought meaningful conversations and continued momentum across our platform.

We attended the National Multifamily Housing Council (NMHC) conference, this time in Las Vegas, for the 20th consecutive year and spent time on the ground in several key markets. 

In this edition, we share what we learned, including market insights, operational highlights, recent recognitions, and property tour updates.

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What’s Happening in the Apartment Market?

Operations Are Separating Winners from the Pack

Over the past 12 months, the U.S. delivered more than 500,000 apartment units, one of the largest annual supply waves in modern history.¹ Deliveries outpaced absorption, pushing national vacancy into the high-8%¹ range, flattening effective rent growth as operators competed to maintain occupancy.

Demand, however, remained positive. Renter household growth continued. Construction starts slowed sharply and the pipeline thinned further. What we are seeing is a normalization of capital conditions, not a breakdown of rental housing fundamentals. We believe the market is working through the final stage of an unusually large supply cycle.

In slower growth periods, stable occupancy and renewal retention become the primary drivers of value creation. Stable cash flow is an important growth driver in transitional markets. A low purchase price typically matters more in flat markets than in rising ones. That means performance today is driven less by broad rent growth and more by execution: renewals, occupancy management, expense control, and disciplined operations.

Read our 2026 predictions and market outlook →

Capital Markets Update

Multifamily closed 2025 at roughly $128 billion in trailing 12-month sales volume, and early 2026 activity is running ahead of last year, according to CoStar. Three themes stood out:

• Pricing is stabilizing. Values remain roughly 20–25% below peak levels², and cap rates have expanded from 2021 lows before stabilizing in recent quarters. Pricing resets generally restore discipline and can present acquisition opportunities.

• Liquidity is improving, unevenly. Transactions are closing where purchase pricing aligns with today’s debt costs. Assets with low occupancy or stressed capital structures are coming to market in greater numbers and well-capitalized buyers are monitoring this for potential repricing opportunities.

• Underwriting is tighter. Investors are prioritizing in-place cash flow, conservative leverage, and realistic rent assumptions. Transactions are clearing based on current cash flow under today’s debt costs, not speculative rate cuts or aggressive growth projections.

Read our CIO, Bill's Takeaways from NMHC 2026  →

Sources: 1. CoStar Multifamily National Report, Feb 2026. ; 2. Green Street Commercial Property Price Index.

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Behind the Scenes at Steadfast

Awards & Recognitions

In slow growth environments, renewal retention and expense control can compound more reliably than projected rent growth. Below we share a few awards Steadfast Management received recently. While recognitions do not replace the quantitative side of business, they do reflect operational quality, which is tied directly to performance.

🏆 Grace Hill 95% Club (2026): Coventry Heights, Tramore Apartments, and Residences at Salado ranked in the top tier nationally, based on resident satisfaction and likelihood to recommend, as measured through standardized surveys. This award is a reflection of on-site execution and renewal strength.

🏆 Swift Bunny Employee Choice Award (2025): Steadfast Management Company earned this national recognition for the fifth consecutive year based on associate feedback. Employee engagement is closely tied to service quality, turnover stability, and operating consistency.

🏆 Residences at the Landing (2025) (Kerrville, TX): Named Best Apartment Community by the Kerrville Daily Times for the fourth consecutive year. "This continued recognition is a testament to the team’s commitment to excellence and delivering an outstanding resident experience." - Steadfast Management Company.

Property Tour Updates

Estraya (Boerne/Hill Country): Rod Emery, our CEO, and Bill Stoll, our CIO, visited Estraya on a tour to San Antonio this month. They report occupancy is holding above 95%, and renewal retention is tracking around 65%, supported by fast unit turns and re-leasing. The onsite team also hosted a Valentine’s event as part of their ongoing efforts to engage residents.

A concrete example of “capital put  to work” | Residences at the Landing Phase II (Kerrville, TX): Steadfast closed on the development parcel in late 2025. Vertical construction is expected to begin in early March, following the closing of the construction loan. Our Phase I development is fully occupied with a waiting list, supporting demand for additional units in that submarket. We’re very excited for Phase II!

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Your Resources Hub

MARKET INSIGHTS

Five Key Insights from NMHC 2026 that may shape your next investment.

Learn More →

OUR INVESTMENT PROCESS

Our Capital Allocation Strategy: How We Filter Through Roughly 200 Deals a Month

Learn More →

MARKET INSIGHTS

Steadfast’s Predictions for 2026: What Apartment Investors Should Pay Attention To 

Learn More →

OUR STRATEGY

Steadfast's Investment Thesis

Read Our Thesis →

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