Private Equity Turns to Debt Investments to Add Multifamily Assets

U.S. multifamily advertised rents increased by an average of $4 in June to $1,763, continuing the recent trend of moderate growth, Yardi Matrix reported. Rents rose 0.7% during the second quarter of 2026 and 1.0% in the first half of the year. Both metrics fall well below the pace seen in both the immediate pre-pandemic period and the first few post-pandemic years.

However, Yardi Matrix reported, slow rent growth has not stopped investors from allotting capital to the sector. At the same time, growth in property sales has been weak, leading private equity to book multifamily through debt investments at differing levels of the capital stack.

“Debt funds are grabbing a growing share of the pie, agency lenders Fannie Mae and Freddie Mac have expanded their securitization offerings, and pooled multifamily-only CMBS deals are making a comeback for the first time since the 2008 financial crisis,” reported Yardi Matrix.

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