Multifamily entered 2025 with strong underlying demand but faced an aggressive wave of new supply that temporarily outpaced the market’s ability to absorb it. Vacancy drifted higher, rent growth stalled, and capital repriced risk more cautiously — yet investor appetite held and the sector avoided a true stress event. With new starts collapsing and long-term renter demand intact, multifamily heads into 2026 positioned for a measured recovery rather than a rebound driven by speculation.