In this recent webinar, our Chief Financial Officer, Jim Fox, VP of Asset Management, Ryan Thie, and Acquisitions Manager, Alec Bannister, share key takeaways from the National Multifamily Housing Council (NMHC) conference and provide valuable insights on the State of the Market, a retrospective on 2025, our 2026 outlook, and detailed predictions for the year ahead. Topics include tariffs, inflation, construction trends, debt and equity, transaction volume, rent growth, and more.

Navigating Today’s Economic Climate

• Tariffs and inflation were top concerns for multifamily developers.
• Developers anticipated higher costs from tariffs, but the actual impact was milder.
• Subcontractor costs declined due to fewer new projects.
• The current climate requires disciplined underwriting and thorough analysis of local market conditions.

For investors, this signals a complex but manageable climate. The pressures of inflation are real, but so are the opportunities for cost savings and strategic acquisitions. A disciplined approach remains the most effective strategy.

Capital Markets: Equity, Debt, and The Search For Deals

• Equity and debt markets remain competitive, with investors raising capital for expected distress that has not materialized.
• Lenders are extending terms instead of foreclosing on assets.
• Short-term debt products are increasingly popular, with banks and debt funds offering attractive terms.
• Transaction volumes are projected to increase through 2026 and 2027, presenting new investment opportunities for prepared investors.

As a result, the market is seeing a rise in the popularity of short-term debt products. Banks and debt funds are competing to offer attractive terms, creating a favorable environment for well-positioned borrowers. Transaction volume is expected to climb through 2026 and into 2027 as these dynamics play out, presenting new investment opportunities for those ready to act.

Supply, Demand, and The Midwest Advantage

• Construction pipeline analysis highlights:
  • Significant increase in new supply in the South and West.
  • More moderate development activity in the Midwest.
• BAM Capital maintains a strong focus on Midwest markets due to steady conditions and reliable fundamentals.
• Rent Growth and Occupancy: While rent growth saw a temporary dip in 2025 due to new supply coming online nationally, it is expected to rebound in 2026. Occupancy rates in key Midwest markets, including those in Indiana, remain strong.
• Affordability: The Midwest also offers a compelling affordability narrative. Rent-to-income ratios in BAM Capital’s active markets are in the favorable 20-25% range, supporting stable, long-term demand for quality apartments.

BAM Capital: Discipline and Expertise in Multifamily Real Estate

This expertise directly informs our strategy:

• Disciplined Acquisitions: We remain steadfast in our disciplined analysis and underwriting. Our strong industry network allows us to secure first looks at deals, often identifying properties through limited marketing opportunities before they hit the broader market.
• Midwest Focus: Our headquarters in Carmel, Indiana, places us at the heart of the markets we know and trust. We focus on investment opportunities in Indianapolis, Des Moines, Kansas City, Northwest Arkansas, and Pittsburgh, where we see strong fundamentals.
• Proven Fund Performance: Our disciplined approach delivers results. Assets in our BAM Multifamily Growth Fund V, like Hayden Flats and Kinsley Forest, are exceeding pro forma expectations. We have also seen successful dispositions, including the sale of Greenfield Crossing Apartments.
• Asset Management Excellence: Our asset management team actively seeks efficiencies to enhance returns. A recent example includes implementing a new master insurance policy for our BAM Multifamily Growth and Income Fund IV portfolio, which significantly reduced operating costs.

Disclaimer: This content is for informational purposes only and is not financial, tax, legal, or investment advice, nor an offer or solicitation to buy or sell securities. Investment opportunities offered by BAM Capital and its affiliates are made pursuant to Rule 506(c) of Regulation D, available exclusively to accredited investors, as defined by the Securities and Exchange Commission (SEC) and, if applicable, qualified purchasers, as defined by Section 2(a)(51) of the Investment Company Act of 1940. Verification of accredited investor status is required before participation in any investment.

Contact BAM Capital for details on current offerings. BAM Capital and its representatives are not fiduciaries or investment advisors. The information provided is general and may not reflect individual financial goals. Financial terms, projections, or forward-looking statements contained herein are hypothetical and should not be interpreted as guarantees of future performance or safety. Such statements reflect BAM Capital’s opinion and are subject to market fluctuations, economic conditions, and investment risks. Investing in private real estate securities involves significant risks, including, without limitation, illiquidity, economic downturns, and potential loss of invested funds or capital. Past performance does not predict or guarantee future results. Historical transaction figures represent past performance across multiple deals as of the date this information was published, not a single investment transaction. BAM Capital and its affiliates do not guarantee the accuracy or completeness of this information. Prospective investors are strongly encouraged to conduct independent due diligence and consult with legal, tax, and financial advisors before making any investment decisions.

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