2026 Multifamily Leadership Series: Sharon Karaffa, Newmark  

Multifamily is the focus in the fourth year of Connect CRE’s annual Leadership Series. We invited 18 apartment heavyweights to provide their unfiltered views of the current market, its challenges and opportunities. The insights of these power players have been collected in a downloadable report, and we’re also presenting them individually, in alphabetical order. Here is Sharon Karaffa, President, Multifamily Debt & Structured Finance, Newmark, providing insights.

Has the debt market changed compared to a year ago, and if so, how? 

Over the past year, the debt market has become more liquid and competitive, with a broader range of lenders actively deploying capital. That’s reflected in what was the second-largest first-quarter origination volume since 2010, totaling approximately $93 billion based on RCA data. Banks and debt funds are taking on a larger share of originations, allowing borrowers to refinance with shorter term, variable rate debt with flexibility to sell when operations stabilize in the next 12-36 months. At the same time, the GSEs are seeing an uptick in acquisition financing and continue to competitively lend at 5-, 7- and 10+-year terms, with approximately half of their closings with 5-year terms. 

Absorption has increased this year. Is that due to a slowdown in development or other factors? 

Absorption has picked up. The first quarter alone was very strong and that should not be overlooked. However, the glut of new supply nationally, particularly across high-growth Sunbelt markets, is putting pressure on fundamentals. We’re also coming off a period of record absorption, so part of what we’re seeing now is a normalization of demand. It is nuanced, though, as we’ve seen relative outperformance in the Northeast and Midwest. In many markets, softer rent growth and elevated concessions are encouraging renters to move, supporting steady absorption even as conditions vary across regions.  

Will we see an increase or decrease in rent prices this year? 

In the near term, rent growth will remain constrained as the market continues to work through a wave of new supply. Nationally, supply has outpaced absorption by roughly 63,000 units over the trailing twelve months, particularly across parts of the Southeast and Southwest. In markets like Dallas, that imbalance has made it difficult for landlords to push rents and has led to continued concessions.  

That said, the story is highly market specific. Many major markets are still outperforming and showing positive rent growth, even if it’s not accelerating, while Chicago stands out as an outlier with stronger fundamentals relative to other regions. On a national basis, we do expect to see modest rent growth by the end of this year, with further improvement into next year as supply begins to burn off and some of the more challenged Sunbelt markets, including Austin, start to recover. 

Lower-income households spend more of their income on paying rent. Where does a solution lie? 

At its core, this is a supply issue. We simply are not building enough housing to meet demand, particularly at the price points lower-income households need. While concessions in some markets are providing temporary relief, they’re not a long-term solution. The reality is we need more housing across the board, but also more intentional development of housing that is accessible to lower-income renters. For years, the industry has struggled to deliver product at those price points due to rising construction costs and financing constraints. Addressing this will require a combination of increased supply, policy support, and incentives that make it feasible to build and preserve more attainable housing at scale. 

Give your young self some advice. 

Don’t be afraid to take on the opportunity that feels just out of reach. Early in my career, I remember being hesitant to step into a bigger role while I was pregnant and questioning whether the timing was right and whether I could take it on. It took someone else pushing me to go for it, and in hindsight, it was one of the most important decisions I made. I think women, in particular, have a tendency to second-guess themselves or wait until they feel fully ready, when in reality that moment rarely comes. My advice would be to trust your instincts, raise your hand for the bigger opportunity, and not hold yourself back. You are likely more capable than you think. 

Newmark Multifamily Capital Markets combines investment sales with a range of debt products spanning Fannie Mae, Freddie Mac, FHA and CMBS. The team produced $51 billion across more than 1,060 transactions in 2025 and services a $211 billion loan portfolio.

Click here to read the series.